Sirma Group Holding reiterates FY 2016 targets via US expansion; aims USD 100m top line in 5 to 7 years, according to the CEO Tzvetan Alexiev presentation at the regular company online meeting with investors held July 7th 2016.
Alexiev said the company’s new US office in New York is already up and running with Sirma’s founder Yavor Djonev relocated to manage the operations there.
New sales leads already seen in improved results for Sirma’s biggest service subsidiary Sirma Solutions while leads for Ontotext, Sirma’s key product subsidiary, up to now exceed all 2015 leads. However, the latter has a slower sales cycle but the Group is working on improving the conversion cycle.
93% y/y rise in Sirma Q1 sales
Alexiev also reiterated the BGN 20m FY 2016 sales target for Sirma Solutions, a 29% y/y rise and the BGN 8m FY2016 sales target for Ontotext, a 25% y/y rise despite a slower Q1’16 for the latter.
Sirma Solutions booked 93% y/y rise in sales in Q1’16 on stronger system integration and US software development contracts, Alexiev explained. Ontotext’s top line, however, decreased 23% y/y in Q1’16 to BGN 1.5m on slower sales cycle and US marketing team reshuffle.
Alexiev said he expects the latter to speed up top line stabilization in the second half of the year.
Finally, Alexiev pointed out US expansion efforts are already paying off on the top line with US sales share increasing to 25% in Q1’16 from 11% in Q1’15 from consolidated group sales. UK’s share also doubled from 5% to 11% with the Brexit not an issue for the company at this point as all UK contracts are in EUR currency.
Watch investors’ online meeting as of 7 July 2016