SLI Systems boss takes new role
Changes at top of SLI.
See also: SLI Systems expects new San Jose-based CEO to lift revenue growth in largest market
SLI Systems' [NZX: SLI] founding chief executive Shaun Ryan will move into a role as chief innovation officer and named Chris Brennan as the new head of the online retail search engine developer.
The Christchurch-based company says Mr Brennan will start at the company's San Jose office early next month while Mr Ryan will retain his position on the company's board. Mr Ryan held 11.35% of the company's stock as at June 30, according to SLI's annual report.
The leadership changes come just a month after Mr Ryan said SLI's shares were "significantly under-priced" compared to other software-as-a-service companies, which were valued at upwards of four times annualised recurring revenue (ARR). With ARR of $34.6 million, that suggested a market value of at least $138 million for SLI, he said.
SLI shares traded at 83 cents yesterday, valuing the company at $51 million, and have shed a third of their value in the past 12 months. They sold at $1.50 apiece in the company's May 2013 initial public offering.
SLI chairman Greg Cross says his board has concluded the best way to accelerate the company's growth was to recruit a US-based chief executive with a track record in growing early-stage companies. Mr Brennan is "widely respected" in Silicon Valley, with experience in the technology sector ranging from pre-IPO start-ups to multinationals. He also has "a strong history of integrating well with existing founders and management teams to best use their talents for the company's benefit," Mr Cross says.
SLI's annual loss widened to $7.1 million in the year ended June 30, from $5.7 million a year earlier, while operating revenue rose 27% to $28 million, in line with guidance.
At balance date the company had $5.6 million of funds on hand and says it is on track to be cash-flow breakeven in the near term and won't require further investment.
(BusinessDesk)
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Jonathan Underhill
Wed, 30 Sep 2015
Wed, 30 Sep 2015
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SLI Systems boss takes new role
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