JCURVE SOLUTIONS LTD — Interim / Quarterly Report 2016

Feb 22, 2016

ASX ANNOUNCEMENT

23 February 2016

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JCurve Solutions reports 42% increase in revenue for its JCurve Business Software

• Revenue mix change continues with JCurve Business Software +42% and TEMS (Telecom Expense Management) -27%

• 29% increase in monthly recurring revenue for JCurve Business Software

• Churn rates lower at 8.6% for JCurve Business Software

JCurve Solutions Limited ( ASX:JCS or the Company) has today released 2016 half year results, highlighting the continued strong performance for JCurve Business Software.

At a group level the JCurve Solutions revenue mix is changing as expected. High growth JCurve Business Software, +42% to $2.7 million, is now larger than the declining TEMS business, -27% to $2.2 million.

Total revenue was lower by 19% to $4.9 million. In addition to the expected business mix change, the prior corresponding period included $653,000 of now discontinued South African Telco revenue.

The continuing headwinds impacting the TEMS business resulted in the booking of impairments totaling $3.0 million. The intangible assets associated with the TEMS business are now completely written down.

Excluding impairments, JCurve Solutions reported a net profit after tax of $0.2 million, an improvement of $0.8 million on the prior corresponding period.

Discussing the improved results, JCurve Solutions CEO Stephen Canning said the Company remained focused on growth and executing its strategy. “We’re focused on three strategic opportunities. Maximising the value of the TEMS business, investing to grow JCurve Business Software and leveraging our core strengths and capabilities longer term,” said Mr. Canning.

2016 OUTLOOK

The Company’s EBITDA and NPAT outlook for the 2016 financial year remains unchanged from the guidance provided at the November 2015 AGM. Revenue outlook has been updated to reflect seasonality in JCurve Business Software sales. This should lead to an increase at 30 June 2016 in ‘Deferred Revenue’ on the balance sheet representing future revenue to be recognised in FY17.

MEASURE	FY15 BASE	FY16 OUTLOOK
Revenue	$11.3m	Range: $9.5m – $10.5m
EBITDA (excl. impairments)	($0.9m) loss	Range: ($0.2m to $0.5m) loss
NPAT (excl. impairments)	($0.3m) loss	Range: ($0.2m) loss to $0.1m profit

Revenue trends affecting the 2016 outlook comprised strong double digit growth for JCurve, continued weakness from structural headwinds in the TEMS business and discontinued revenue from the South African telco business which contributed $0.7 million in 2015.

“By leveraging our core strengths and capabilities, we will continue to grow the JCurve business by focusing on customers, building a large and sustainable base of monthly recurring revenue, and maximizing the value of the TEMS business through productivity,” said Mr. Canning. “We are investing in our people, our brand, and our customers for long term growth.”

ENDS

Enquiries:

Stephen Canning CEO JCurve Solutions Limited stephen.canning@jcurve.com.au