Integrated Research Limited Reports Decline in Half-Year Profits

Integrated Research Limited ( (IREHF) ) has released its Q2 earnings. Here is a breakdown of the information Integrated Research Limited presented to its investors.

Integrated Research Limited is a company specializing in the design, development, implementation, and sale of systems and applications management software, focusing on business-critical computing, Unified Communication networks, and Payment networks.

Integrated Research Limited recently released its half-year financial results for the period ending December 31, 2024. The report highlights a notable decline in both revenue and profit compared to the corresponding period in the prior year, attributed mainly to a decrease in the value of contract renewals.

The company’s total revenue dropped by 29% to $28.8 million, while net profit after tax fell by 59% to $4.6 million. This was primarily due to a significant reduction in revenue from license fees, which decreased by 38%, and a 50% drop in profit before tax. However, the company reported a strong performance in new business, with revenue from new clients and upselling to existing clients increasing by 76%. Additionally, the company launched a new product, High Value Payments, and secured a major US bank as a foundation client.

Despite the challenging financial performance, the company managed to reduce expenses by 3% to $27.6 million, driven by lower personnel expenses. Cash flow from operating activities also decreased, with net cash generated from operations at $0.5 million, down from $3.4 million in the previous year.

Looking ahead, Integrated Research Limited remains focused on its product agenda and securing new business, while the management continues to navigate the challenges posed by a lower renewal book. The board has decided not to declare an interim dividend, with future dividend assessments to be made after the annual results are available.