Integrated Research Limited 

Major Events:The company has announced the retirement of Mr. Steve Killelea from the Board as both Chairman and Non-Executive Director with effect from November 01, 2018. After the retirement, Mr. Killelea will enter into a consulting contract with the company to provide assistance, including in an advisory capacity to the Strategy Committee. Meanwhile, the Company signed a global resale arrangement in July 2018 with Avaya, the key support provider to every major UC vendor.

Fundamental Analysis: As per IRI’s FY18 annual report released in October 2018, the group reported a mix of result.

Revenue and Profit Growth: Company posted healthy revenues with a strong growth trajectory of 14% to $13.2 million in Asia Pacific. The growth story was backed by the growth in license sales of the core prognosis software platform to service providers, call centers and enterprises. Revenues posted from the Americas showed an increment of 3% to US$49.5 million. European sales driven partly by poor trading conditions and few internal factors faced a decline of almost 10%. Globally, the company maintained its place as the largest line of business with its revenue from UC sales increasing by 7% to $54.9 million. Net profit after tax recorded 4% rise from $18.5m to $19.2m. Net assets posted as on June 30, 2018 witnessed an increase of 19% from $48.5m to $57.8m.

Strong Balance sheet:IRI maintained a strong balance sheet with $11.2 million of cash as on 30 June 2018 and no debt recorded on books.

Agreement with Cisco:Company has signed a global distribution agreement with Cisco, which came into effect on January 2018, under which Cisco will carry the prognosis UC products in its global price book. The Company achieved strong UC license sales growth from Cisco customers.

Strong Customer Base:The Company holds a strong customer base of more than 1200 customers in over 60 countries through direct sales offices in the USA, UK, Germany, Singapore and Australia, and via a global, channel?driven distribution network, with an addition of around 72 new customers in 2018  including BHP, Coles, Bosch and PayPal and the service providers DXC Technology, and Ethan Group. Customer base consists of many of the world’s largest organizations and includes major stock exchanges, banks, credit card companies, telecommunications carriers, technology companies, service providers and manufacturers.

Technical Analysis:The scrip after forming the bearish candle with long wick indicating rejection on upside and  touching  the higher levels of $2.96 on September 25, 2018 faced a complete downtrend with slight recovery on October 16.The scrip is currently trading near the lower bollinger band with major indicators like RSI at the levels of 34 which is near the oversold position while MACD is consolidating in negative territory . With all major indicators along with price trading at the lower end of Bollinger bands, the stock is a watch at the current levels.

In the long run company growth is backed by well-crafted strategies to introduce new products in adjacent markets. Development of number of artificial intelligence-based applications for the current markets, strong customer base, healthy financials and strong product story can boost overall growth of the Company The stock has a market capitalization of $410.3M, as on October 24, 2018, P/E at 21.36x. IRI is a watch while it trades at the current price of $ 2.290, down 4.2% on October 24, 2018.
 
 

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.