Software producer Crealogix had a net loss in the financial year that ended in June as it included one-off costs for converting the business to a recurring revenue model.
Zurich-based Crealogix, which makes software for the banking industry, had a net loss of 5.4 million Swiss francs ($6 million) in the year that ended in June. The result includes a goodwill amortization of 4.9 million francs.
The company is in the process of moving the business model from one-time to recurring revenue by pushing software-as-a-service and had one-off costs of 7 million francs as a consequence. Crealogix reported an operating loss of 4.6 million francs instead of a profit of 2.4 million (half a million plus from a year earlier).
Cutting Costs
Sales increased 3.9 percent in local currencies to 103.7 million francs, with software-as-a-service (SaaS) and hosting revenues adding 15 percent. SaaS accounted for 44 percent in the past reporting period. Crealogix has set itself a medium-term goal of a recurring revenue share of 60 percent.
The company is undertaking a strategic shift of its revenue model and at the same cutting operating expenses. In July, Crealogix said it will eliminate 70 jobs (the total was 682 at the end of June, down from 702 a year earlier).
The board of directors proposed not to pay a dividend from capital reserves to shareholders.
Positive Outlook
Crealogix expects to post a positive result with an EBITDA margin beyond that of the adjusted EBITDA of 2019/2020.
«We have shifted gears and will begin to further cash in on the positive effects of the transformation,» said Oliver Weber, chief executive officer at Crealogix.
