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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Optiva Inc | TSX:OPT | Toronto | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 6.00 | 4.50 | 6.50 | 0 | 21:00:00 |
Optiva’s strategic decision to upgrade its current customer base to the cloud and invest in winning new customers requires a commitment to continue investments in its go-to-market (GTM) strategy and R&D, setting the Company on a path to sustainable and profitable growth with a focus on recurring revenue. The Company’s focus on public and private cloud software is validated by the 60% increase in its qualified pipeline2 since November 2022, now reaching $300 million (of TCV), with cloud deals representing 90% of the opportunities.
New entrants to the telecom market are introducing a unique dynamic where decisions are made much quicker than traditional mobile operators, and speed to market is prioritized. To date, the Company’s strongest bookings have been primarily from existing customers. As the Company looks at its growing pipeline, approximately 80% of bookings are expected to come from new customers, signaling that the Company's strategy is resonating. Optiva’s success with more than 16 MVNO brands and ability to deploy an out-of-the-box software solution in just 90 days is an advantage over the Company's competition.
_________
1 EBITDA, Adjusted EBITDA, TCV and adjusted EPS are non-IFRS measures. These measures are defined in the "Non-IFRS Financial Measures" section of this news release. 2 Qualified pipeline contains revenue opportunities from new and existing customers who are deemed to have a high chance of buying our product or services. The customer has a defined problem and has indicated a need for a solution where Optiva's products fit. A qualified pipeline filters out opportunities undergoing prospecting and lead qualification.
In addition, the Company has made significant progress towards building a stable platform for growth over the past two years, including securing upgrade deals for more than 15 customers, representing 48% of last 12 months revenue and winning four new cloud customers. During the past several quarters, the Company benefited from migration delays by some departing customers who chose to extend their support contracts. The Company believes that the majority of the impacts of the known churn have been realized, and it anticipates the second quarter marks the low for Optiva’s revenue as new business wins begin to be realized in 2024.
“We remain encouraged by the growth of our sales pipeline as demand for cloud-native software is accelerating. Our GTM team, backed by our growing R&D group, continues to have robust dialogue with new market entrants and telecom providers who see new opportunities. We are confident in the team’s ability to convert these into long-term customers in the coming quarters. We are committed to completing the strategic transition and look forward to sharing these successes with the market,” said Robert Stabile, Chairman of the Board of Directors and Chief Executive Officer of Optiva.
For more information about Optiva, please visit https://optiva.com/q2-2023-investor-presentation/
Business Highlights
Second Quarter 2023 Financial Results Highlights:
Q2 Fiscal 2023 Highlights | Three Months Ended | Six Months Ended | |||||||||||
($ US Millions, except per share information) | June 30, | June 30, | |||||||||||
(Unaudited) | 2023 | 2022 | 2023 | 2022 | |||||||||
Revenue | 11.1 | 15.4 | 23.7 | 31.5 | |||||||||
Net Income (Loss) | (1.3 | ) | (0.5 | ) | (4.1 | ) | 1.3 | ||||||
Earnings (Loss) Per Share | ($0.21 | ) | ($0.08 | ) | ($0.66 | ) | $0.22 | ||||||
Adjusted Earnings (Loss) Per Share(1) | ($0.21 | ) | ($0.11 | ) | ($0.66 | ) | $0.00 | ||||||
Adjusted EBITDA(1) | (0.3 | ) | 3.7 | 0.7 | 7.5 | ||||||||
Cash from (used in) operating activities | (1.1 | ) | 0.4 | (2.8 | ) | 0.4 | |||||||
Total cash, including restricted cash | 13.0 | 26.4 | 13.0 | 26.4 | |||||||||
Non-IFRS Measures
“EBITDA" and "Adjusted EBITDA" are not financial measures calculated and presented in accordance with International Financial Reporting Standards (IFRS) and should not be considered in isolation or as a substitute to net income (loss), operating income or any other financial measures of performance calculated and presented in accordance with IFRS, or as an alternative to cash flow from operating activities as a measure of liquidity. The Company defines EBITDA as net income (loss) excluding amounts for depreciation and amortization, other income, finance costs, finance income, income tax expense (recovery), foreign exchange gain (loss) and share-based compensation. The Company defines "Adjusted EBITDA" as EBITDA (as defined above), excluding restructuring costs, one-time provision amounts, and any one-time transaction costs associated with shareholder conflict. The Company believes that Adjusted EBITDA is a metric that investors may find useful in understanding the Company's financial position. The following table provides a reconciliation of Net Income to EBITDA and Adjusted EBITDA (in thousands of U.S. dollars).
Three months ended, June 30 | Six months ended, June 30 | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Net income (loss) for the period | $ | (1,294 | ) | $ | (492 | ) | $ | (4,070 | ) | $ | 1,345 | ||||
Add back / (substract): | |||||||||||||||
Depreciation of property and equipment | 166 | 144 | 323 | 236 | |||||||||||
Amortization of intangible assets | - | 361 | 361 | 722 | |||||||||||
Finance income | (102 | ) | (73 | ) | (237 | ) | (159 | ) | |||||||
Finance costs | 2,392 | 2,238 | 4,757 | 3,413 | |||||||||||
Income tax expense | 455 | 494 | 1,022 | 737 | |||||||||||
Foreign exchange loss | 119 | 488 | 409 | 537 | |||||||||||
Share-based compensation | (2,055 | ) | 560 | (1,858 | ) | 709 | |||||||||
EBITDA and Adjusted EBITDA | $ | (319 | ) | $ | 3,720 | $ | 707 | $ | 7,540 | ||||||
Adjusted EPS is reported diluted EPS excluding the impact of change in the fair value of warrants, one-time costs (recovery) related to shareholder conflict and release of provisions.
TCV is the Total Contract Value of all bookings closed in the period.
About Optiva
Optiva Inc. is a leader in powering the telecom industry with cloud-native billing, charging and revenue management software on private and public clouds. Its products are delivered globally on the private and public cloud. The Company’s solutions help service providers maximize digital, 5G, IoT and emerging market opportunities to achieve business success. Established in 1999, Optiva Inc. is on the Toronto Stock Exchange (TSX: OPT). For more information, visit www.optiva.com.
Caution Concerning Forward-Looking Statement
Certain statements in this document may constitute "forward-looking" statements that involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this document, such statements use such words as "may," "will," "expect," "continue," "believe," "plan," "intend," "would," "could," "should," "anticipate" and other similar terminology. Forward-looking statements in this document include statements regarding the Company's "qualified pipeline", the TCV of the qualified pipeline and the Company's expectations regarding future revenues. These statements are forward-looking as they are based on our current expectations, as at August 14, 2023, about our business and the markets we operate in and on various estimates and assumptions. Our actual results could materially differ from our expectations if known or unknown risks affect our business or if our estimates or assumptions turn out to be inaccurate. As a result, there is no assurance that any forward-looking statements will materialize. Risks that could cause our results to differ materially from our current expectations include the risk that the Company will not secure contracts with customers that are included in its qualified pipeline, the risk that existing customers may decrease their spend with the Company and other risks that are discussed in the Company's most recent Annual Information Form, available on SEDAR at www.sedarplus.com and Optiva's website at www.optiva.com/investors/. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Optiva does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.
For additional information, please contact:
Media Contact:Misann Ellmakermedia@optiva.com
Investor Relations:Ali Mahdavi investors-relations@optiva.com
OPTIVA Inc. | |||||||
Condensed Consolidated Interim Statements of Financial Position | |||||||
(Expressed in thousands of U.S. dollars) | |||||||
(Unaudited) | |||||||
June 30, | December 31, | ||||||
2023 | 2022 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 12,182 | $ | 18,386 | |||
Trade accounts and other receivables | 8,396 | 7,535 | |||||
Unbilled revenue | 14,823 | 17,821 | |||||
Prepaid expenses | 2,090 | 1,938 | |||||
Income taxes receivable | 3,923 | 3,820 | |||||
Other assets | 627 | 610 | |||||
Total current assets | 42,041 | 50,110 | |||||
Restricted cash | 775 | 1,948 | |||||
Property and equipment | 1,108 | 1,221 | |||||
Deferred income taxes | 330 | 376 | |||||
Long-term unbilled revenue | 387 | 332 | |||||
Intangible assets | - | 360 | |||||
Goodwill | 32,271 | 32,271 | |||||
Total assets | $ | 76,912 | $ | 86,618 | |||
Liabilities and Shareholders' Equity (Deficit) | |||||||
Current liabilities: | |||||||
Trade payables | $ | 2,058 | $ | 3,147 | |||
Accrued liabilities | 9,290 | 11,624 | |||||
Income taxes payable | 4,358 | 4,365 | |||||
Deferred revenue | 1,782 | 1,995 | |||||
Total current liabilities | 17,488 | 21,131 | |||||
Deferred revenue | 220 | 403 | |||||
Other liabilities | 1,672 | 2,302 | |||||
Pension and other long-term employment benefit plans | 91 | 713 | |||||
Debentures | 88,107 | 87,716 | |||||
Deferred income taxes | 440 | 433 | |||||
Total liabilities | 108,018 | 112,698 | |||||
Shareholders' equity (deficit): | |||||||
Share capital | 270,560 | 270,560 | |||||
Contributed surplus | 14,985 | 15,941 | |||||
Deficit | (320,700 | ) | (316,630 | ) | |||
Accumulated other comprehensive loss | 4,049 | 4,049 | |||||
Total shareholders' equity (deficit) | (31,106 | ) | (26,080 | ) | |||
Total liabilities and shareholders' equity (deficit) | $ | 76,912 | $ | 86,618 | |||
OPTIVA Inc. | |||||||||||||||
Condensed Consolidated Interim Statements of Comprehensive Income (loss) | |||||||||||||||
(Expressed in thousands of U.S. dollars, except per share and share amounts) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended, June 30 | Six months ended, June 30 | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Revenue: | |||||||||||||||
Support and subscription | $ | 7,547 | $ | 9,660 | $ | 15,985 | $ | 19,958 | |||||||
Software licenses, services and other | 3,544 | 5,738 | 7,756 | 11,576 | |||||||||||
11,091 | 15,398 | 23,741 | 31,534 | ||||||||||||
Cost of revenue | 3,894 | 4,456 | 7,877 | 8,527 | |||||||||||
Gross profit | 7,197 | 10,942 | 15,864 | 23,007 | |||||||||||
Operating expenses: | |||||||||||||||
Sales and marketing | 2,745 | 2,015 | 5,264 | 4,834 | |||||||||||
General and administrative | 8 | 3,062 | 2,486 | 6,236 | |||||||||||
Research and development | 2,874 | 3,210 | 6,233 | 6,064 | |||||||||||
5,627 | 8,287 | 13,983 | 17,134 | ||||||||||||
Income from operations | 1,570 | 2,655 | 1,881 | 5,873 | |||||||||||
Foreign exchange loss | (119 | ) | (488 | ) | (409 | ) | (537 | ) | |||||||
Finance income | 102 | 73 | 237 | 159 | |||||||||||
Finance costs | (2,392 | ) | (2,238 | ) | (4,757 | ) | (3,413 | ) | |||||||
Income (loss) before income taxes | (839 | ) | 2 | (3,048 | ) | 2,082 | |||||||||
Income taxes (recovery): | |||||||||||||||
Current | 408 | 510 | 979 | 695 | |||||||||||
Deferred | 47 | (16 | ) | 43 | 42 | ||||||||||
455 | 494 | 1,022 | 737 | ||||||||||||
Total net income (loss) and comprehensive income (loss) | (1,294 | ) | (492 | ) | (4,070 | ) | 1,345 | ||||||||
Income (loss) per common share | |||||||||||||||
Basic | $ | (0.21 | ) | $ | (0.08 | ) | $ | (0.66 | ) | $ | 0.22 | ||||
Diluted | (0.21 | ) | (0.08 | ) | (0.66 | ) | 0.22 | ||||||||
Weighted average number of | |||||||||||||||
common shares (thousands): | |||||||||||||||
Basic | 6,178 | 6,178 | 6,178 | 6,178 | |||||||||||
Diluted | 6,178 | 6,178 | 6,178 | 6,178 | |||||||||||
OPTIVA Inc. | |||||||||||||||
Condensed Consolidated Interim Statements of Cash Flows | |||||||||||||||
(Expressed in U.S. dollars) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended, June 30 | Six months ended, June 30 | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Cash provided by (used in): | |||||||||||||||
Operating activities: | |||||||||||||||
Income (loss) for the period | $ | (1,294 | ) | $ | (492 | ) | $ | (4,070 | ) | $ | 1,345 | ||||
Adjustments for: | |||||||||||||||
Depreciation of property and equipment | 166 | 144 | 323 | 236 | |||||||||||
Amortization of intangible assets | - | 361 | 361 | 722 | |||||||||||
Finance income | (102 | ) | (73 | ) | (237 | ) | (159 | ) | |||||||
Finance costs | 2,392 | 2,238 | 4,757 | 3,413 | |||||||||||
Pension | (216 | ) | (592 | ) | (642 | ) | (1,705 | ) | |||||||
Income tax expense | 455 | 494 | 1,022 | 737 | |||||||||||
Unrealized foreign exchange gain | 46 | (834 | ) | (11 | ) | (1,344 | ) | ||||||||
Share-based compensation | (2,055 | ) | 560 | (1,858 | ) | 709 | |||||||||
Change in non-cash operating working capital | (175 | ) | (1,131 | ) | (1,503 | ) | (1,671 | ) | |||||||
(783 | ) | 675 | (1,858 | ) | 2,283 | ||||||||||
Interest paid | - | (11 | ) | (6 | ) | (22 | ) | ||||||||
Interest received | 81 | 27 | 192 | 59 | |||||||||||
Promissory note paid | - | - | - | (2,000 | ) | ||||||||||
Income taxes (paid) received | (363 | ) | (282 | ) | (1,105 | ) | 37 | ||||||||
(1,065 | ) | 409 | (2,777 | ) | 357 | ||||||||||
Financing activities: | |||||||||||||||
Payment of interest on loans and borrowings | - | - | (4,424 | ) | (4,424 | ) | |||||||||
- | - | (4,424 | ) | (4,424 | ) | ||||||||||
Investing activities: | |||||||||||||||
Purchase of property and equipment | (22 | ) | (416 | ) | (200 | ) | (524 | ) | |||||||
Decrease in restricted cash | 395 | 23 | 1,173 | 15 | |||||||||||
373 | (393 | ) | 973 | (509 | ) | ||||||||||
Effect of foreign exchange rate changes | |||||||||||||||
on cash and cash equivalents | (47 | ) | 381 | 24 | 585 | ||||||||||
Increase (decrease) in cash and cash equivalents | (739 | ) | 397 | (6,204 | ) | (3,991 | ) | ||||||||
Cash and cash equivalents, beginning of period | 12,921 | 25,199 | 18,386 | 29,587 | |||||||||||
Cash and cash equivalents, end of period | $ | 12,182 | $ | 25,596 | $ | 12,182 | $ | 25,596 | |||||||
1 Year Optiva Chart |
1 Month Optiva Chart |
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