Fusionex International (FXI) (320p and 2.5% of JIC Portfolio) I have bought a new holding in FXI this morning. I was nudged into taking action by a column in the latest edition of Red Hot Penny Shares written by an old colleague and friend, David Thornton, who has just been appointed the new editor of the publication. It’s well worth a look!


FXI is a Malaysian based enterprise software company, which listed on AIM last December. It currently has two offerings: Core Transaction Engine (CTE) and Business Intelligence (BI). CTE, FXI’s first product, provides software to aid the day-to-day running of a business, such as payments, messaging, audit trail and security management. BI is a software suite, which helps its fantastic list of blue chip clients, to make sense of the huge amount of data they collect through their everyday operations, so that they can better manage their business and stay ahead of the competition. Growth has been strong with sales for the year ended September 2013 forecast to be up 31% on 2012 and earnings per share up 46%. A year end trading statement issued yesterday confirms that the “board anticipates that the revenue as well as profit achieved for the full year results for the year ending 30 September will be at least in line with market expectations.”


In the trading statement it says that its “new flagship Big Data product, GIANT, is now in advanced stages of testing. Once launched, GIANT will be able to be deployed to either cloud, on premise or hybrid environments. Fusionex has conducted a number of paid pilots with clients, and full product launch continues to be targeted before the end of calendar year 2013.” GIANT could be a game changer for FXI as it is will be priced at a significant premium to the BI offering and with management claiming that 70% of existing customers have already expressed an interest in it, sales uptake could be pretty rapid.


The company is Malaysian based, reporting in Malaysian ringgits, and is building a substantial presence in the rapidly growing Far East region; it has recently opened offices in Hong Kong and Indonesia. In yesterday’s announcement it highlighted its first new client win in Hong Kong and the importance of its Hong Kong office as a “hub and gateway to North Asia (including China) and a region where management believes…

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