Integrated Research shares are going nuts after a glowing profit forecast
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Integrated Research says profit is set to tick up again and its shares are going nuts.
This morning the almost $300m company presided over a 30 per cent bounce in its stock to $2.16.
The cause was a profit forecast of $11.1m to $11.7m for the first half of 2019, up 19-26 per cent on the same period last year.
Shares in IR (ASX:IRI) have suffered an absolute drubbing since the start of 2018 when they topped $4.
IR shares were collateral damage when shares in another tech stock, Technology One, were dumped in mid-May amid investor unease as it transitioned to a ‘Software as a Service’ business model.
It makes software that keeps critical computer systems such as payments and communications platforms running smoothly.
It’s licensed out to global stock exchanges, telcos and the like, with a small, but prized, global market.
Analysts were bemused by the sell down at the time, although one raised concerns about licence payments over the next few years.
IR said today licence sales for the first half were set to hit $30m to $31.5m, up 17-23 per cent on last year.
Revenue is due to hit between $49m to $50.5m, representing 7-11 per cent growth.