Diligent new customer numbers fall
Diligent shares have plunged 11.5 per cent after the NZX-listed software firm reported a drop in the number of new customers using its software.
It signed 122 net new customers in the three months to the end of September, compared with 168 in the corresponding period last year.
Investors are in the dark over the company's recent financial performance as Diligent has been forced to restate its results for the past three financial years because of an accounting compliance issue.
That has had a knock-on effect. Until the work is complete, the company has been unable to report its sales or profit figures for the two quarterly periods between March and the end of last month.
That means the customer numbers released to the NZX today are the only information shareholders have to go on to assess the company's recent performance.
Chief executive Alex Sodi said that while Diligent had slower new-sales growth in the United States in the third quarter, its upgrade sales to existing US clients "continued to be strong".
New sales outside the US were slightly slower, he said, but Diligent maintained its client retention rate - during the quarter.
Diligent increased cash on hand by US$8.4 million in the third quarter, leaving it with US$47.4m in cash at September 30.
The increase in cash was primarily because of a strong effort by the financial team in bringing up to date the company's billing and collection efforts, Diligent said.
The company makes cloud-based software that lets company directors access board documents electronically. Its shares were trading down 65 cents at $5 shortly before 11am, valuing the company at $419m.
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