Integrated Research (ASX: IRI) made an announcement this morning to say that it expects to report a record FY20 result for both revenue and profit. The Integrated Research share price is up 2.6%.
What is Integrated Research?
Integrated Research Limited describes itself as the leading global provider of proactive performance management software for critical infrastructure, payments and communication ecosystems. The company has been operating since 1988 and now has over 250 employees across five countries with 1,000 organisations as clients in more than 60 countries – some of them being Fortune 500 businesses.
FY20 result
The company is in the early stages of preparing its FY20 report. Based on internal management accounts and subject to audit, Integrated Research anticipates it’s going to achieve a record for both revenue and net profit after tax.
Integrated Research’s total revenue is expected to be in the range of $109.5 million to $111 million. This would be growth of 9% to 10%.
Profit after tax for FY20 is expected to be in the range of $23.6 million to $24.2 million compared to $21.9 million. This would represent an increase of 8% to 11%.
Licence sales are expected to be in the range of $70.8 million to $72.3 million, representing 13% to 15% growth with the strongest performance from the Unified Communications division.
Summary
A record result is always a good thing to see for shareholders. Integrated Research is valued at 25x the estimated earnings for FY21 according to CommSec. That’s not too bad considering the regular growth of the company. However, I don’t know enough about the company (yet) to say whether it’s a great buy at today’s price.
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