Canada's Enghouse Systems falls after Q4 profit decline

Enghouse Systems

13/12/2024 16:21

** Shares of Canadian enterprise software solutions provider
Enghouse Systems  ENGH.TO  down as much as 11.6% at C$27.77
    ** Stock set for its worst day since March 2023, if losses
hold
    ** Co posted Q4 results after market close on Thursday
    ** Q4 revenue rose 2.1% to C$125.7 mln ($88.31 mln), while
adjusted EBITDA fell 6% to C$35.6 mln from a year ago
    ** Year-on-year increase in direct costs and operating
expenses overshadowed rise in revenue, hurting profit
    ** Co said demand for on-premise, perpetual software
licenses has declined as more customers are choosing SaaS
solutions that require less upfront capital investment in
current business environment
    ** Including session's moves, stock has fallen ~20% YTD

($1 = 1.4234 Canadian dollars)

 (Reporting by Neil J Kanatt in Bengaluru)
 ((Neil.JKanatt@thomsonreuters.com;))