SLI Systems Targets US To Increase Repeat Web Search Revenue
SLI CFO Rod Garrett has said growth in the United States is a priority.
Retail software developer SLI Systems wants to do better in its core US market after posting another loss for the six-month period ended Dec. 31.
The Christchurch-based company provides site research, navigation, merchandising and search engine optimization services for major e-commerce sites around the world.
Search software makes it easier for online shoppers to find the products they want on a retailer’s website. The income comes from the fees it charges for repeat searches.
The NZX-listed company recorded a loss of $ 500,000 for the six months to Dec. 31 and an improvement from a loss of $ 4.1 million a year earlier. But it improved its half-year revenue forecast to $ 17.4 million, helped by favorable exchange rates.
Shares of SLI closed up 6.33% at 84 cents on Monday.
SLI CFO Rod Garrett said 64% of its business is in the United States.
The lack of growth in the United States has affected overall sales growth, he said.
The company wanted to continue to grow globally, but its top priority was the United States, where the company did most of its most profitable web searches.
Chris Brennan, new Managing Director of SLI based in the United States
said the company was resisting calls to go into the stock market for more money than it could spend to increase its market share.
Instead, the goal was to gain more from existing customers, rather than incurring large losses while trying to gain new business.
SLI could comfortably control its operating costs and cash flow without new equity, Garrett said.
“At any time, we have the option of transforming our business into positive or neutral cash flow, simply by slightly lowering our growth costs. “
The company was not ready to look for new shares when its share price was relatively low, he said.
“We think the right thing to do is to continue to increase this revenue because of the margin we are making on this as recurring revenue.”
SLI told NZX last week that its operating revenue for the six months to Dec.31 increased to $ 17.4 million, up 30% from the same period a year ago.