17 Oct 2012

New clients help Diligent double revenue

8:50 am on 17 October 2012

Software retailer Diligent says it is focusing on growth in its business of leasing software to help company directors so that it can maintain the momentum created by a flurry of new sales.

The New York-based, New Zealand-listed firm's software helps company boards keep track of their papers online, and it generates income from annual subscriptions for the software.

Diligent generated a record $US11.8 million in the three months to September, compared with $4.8 million in the same period last year, it said in third-quarter results posted on Tuesday.

Chief executive Alex Sodi says new sales rose 30% to $US6.4 million.

This was a fall in comparison to the first and second quarters of 2012 and the NZX share price for Diligent Board Member Services fell 4 cents to $3.77 after the announcement.

Mr Sodi says while America dominates sales, Europe and the Asia-Pacific regions are picking up.

"A significant amount of revenue that we're delivering is based on the increased annual contracts that we have with our clients," he says.