$4.1m contract win with major financial services firm sent shares up 18%, reversing recent fall
Companies: Cirata Plc
Shares in WANdisco jumped 18% on Monday after the Sheffield-based tech firm announced that it had signed its largest ever contract with a major financial service multinational. The $4.1m deal will see the unknown company use WANdisco's big data and cloud product Fusion.
WANdisco, which specialises in data replication technology, said the client selected Fusion after an extensive testing period and has now taken the product on a "volume limited" perpetual license.
CEO David Richards said he was delighted to announce the deal, the largest since WANdisco's inception:
"This highly competitive and technologically complex mandate reinforces our belief that Fusion is the only solution that can enable organisations to seamlessly move large volumes of critical data without any downtime or service disruption - something many thought impossible."
He added that the firm was continuing to see increasing traction with WANdisco Fusion, with the product providing the foundation in the company's order book and pipeline in the coming financial year.
The Company said it ended Q1 with $7.6m in the bank, reducing cash burn during the quarter to zero. The firm achieved this due to strong bookings, good cash collection, and an R&D Tax Credit claim from HMRC.
WANdisco is expected to hit revenues of roughly $15m this year and $21m in 2018, with net losses falling markedly from $12.8m to $2.65m. Its normalised EPS is expected to be a loss of -38 USD¢/share. However, Broker consensus has been increasing throughout the year, from -54¢ back in April 2016, according to Stockopedia.