‘Good momentum’ for Halogen in 2016 Q1, says CEO

Halogen Software is building “good momentum” so far in 2016, CEO Les Rechan said late Thursday, citing first-quarter total and recurring revenues that exceeded guidance.

“We saw good momentum in support of our strategic initiatives in Q1 including: increasing our product suite capabilities to enable next-generation performance for our customers, good inroads on partner expansion with Dell Boomi and Jobvite and a renewed focus on aligning our business to customer outcomes,” Mr. Rechan said in a statement.

The Ottawa firm posted first-quarter revenue of $17.7 million, up 11 per cent from the same quarter of 2015. Recurring revenue came in at $16.2 million, a 13 per cent increase from the same period last year.

American clients accounted for 81 per cent of Halogen’s revenue, while 11 per cent of its revenue came from international markets and the remaining eight per cent from Canadian clients.

Halogen’s adjusted EBITDA was $900,000, compared with a loss of $3.6 million in the first quarter of 2015.

The company’s gross margin was $13.3 million, or 75 per cent of total revenue, in the first quarter of 2016, compared with $11.8 million, or 74 per cent of total revenue, in the first quarter last year. Halogen’s net loss of $56,000 was down substantially from the $4.7 million recorded in the first three months of 2015.

As of March 31, Halogen had $34.9 million in cash and investments, down from $36.1 million at the end of the previous quarter.

Halogen is projecting second-quarter revenue of between $17.8 million and $18 million and recurring revenue of between $16.3 million and $16.5 million.

It is projecting total revenue for 2016 of between $72.6 million and $73.6 million and recurring revenue of between $66.1 million and $67.1 million.