Prophecy International Holdings Ltd (ASX: PRO) is pleased to announce that it has signed an agreement to sell its basis2 Utilities Billing System. basis2 forms a part of the Legacy business unit at Prophecy.

The business has been sold for a consideration of AUD$2.75 million in cash and the agreement is subject to the buyer raising part of the cash settlement amount through a share placement. Final settlement of the transaction is due by the end of May 2017 when the full consideration will be paid in cash and the staff and business assets transferred to the new owner.

Brad Thomas, Prophecy Group CEO said “This is a significant day for Prophecy and marks a transition away from our old lines of business to a renewed focus on growth in our new businesses. We are now fully focused on the Security and Log Management market with Snare and in the Analytics and Business Value Dashboard market with eMite. This sale not only further solidifies the cash position of the company but enables us to invest in a number of growth initiatives to better reach our global markets and support our customers and partners around the world.”

The basis2 business is built around a solid core of Oracle technology and has a global customer base, however it is not a focus of future growth for Prophecy.

Prophecy is pleased that the buyer has seen the value in the technology and the customers and will give the existing customer base the support that they require.

Prophecy was advised by global utility/water/telecommunications enterprise software M&A advisors, Presser & Co, www.presserco.com.au

Prophecy is also pleased to record that the supplier dispute noted in our previous ASX announcement of 13 February 2017 has now been amicably resolved.

Prophecy released its consolidated financial statements for the FY2017 half year on 24 February 2017

Read the Half Year Accounts

Prophecy International Holdings Ltd (PRO) recognised revenues for FY17 Q1 came in at $3.1 million compared to $4.5 million for the same quarter in FY16. The FY16 Q1 figure was higher than usual for Q1, as it included a $1 million sale closed in the period. The average quarterly revenue over the last 4 quarters is $3.4 million, with individual quarters ranging from $2.9 million in FY16 Q3 to $3.8 million in FY16 Q4. The best revenue quarters have traditionally been Q4 and Q2, and this trend is expected to continue.

The SNARE sales team once again has closed deals with some impressive names including Telus Communications, Indiana University, University of Kansas, California State Polytechnic, US Patent Office, Presbyterian Health Services, Global Payments Inc, Texas Department of Transportation, University of Oklahoma, Berkley University, UPS, HarborOne Bank, Prime Bank, Saks Fifth Avenue, Royal Mail, US General Services, Penske Automotive, Veolia and Coventry Building Society.

The SNARE partner team has been working very closely with the IBM QRadar security solution team and SNARE has now been accepted as a solution available on the IBM Security App Exchange. This will provide very high visibility for the SNARE solution and its interaction with the IBM QRadar Security Intelligence Platform. SNARE now is integrated with the IBM QRadar Security solution in over 40 sites worldwide and the SNARE team is working to promote the SNARE solution to all IBM QRadar partners worldwide. Zenith Systems, a certified IBM QRadar partner servicing South Africa was the first to sign to become a SNARE partner and promote SNARE to its existing and prestigious customer base of IBM QRadar users.

SNARE has appointed a Channels manager for the EMEA region to assist in achieving a target of 50% of new sales via partners. Two new partners have come on board already, and SNARE new sales from partners has grown to some 33% as a result of the combined partner activity.

The eMite sales team has been bolstered by the appointment of Brad Thomas to the position of General Manager, Sales. His objective is to grow eMite sales revenue, and build a team to match the resources of the SNARE sales team. This will enable eMite to capture the opportunities that abound for the eMite product set.

During the quarter, the major focus for eMite has been the progression of the relationship with Interactive Intelligence (ININ), the supplier of world leading call centre management software, which now has an integration to the eMite dashboard solution. eMite dashboards are now available for the ININ PureCloud platform as well as the traditional ININ call centre platforms. The initial group of ININ sites have signed up for the eMite reporting modules and this success, combined with recent conference activity, has accelerated interest in the eMite solution. Enquiries are coming in worldwide from both partners and customers. The eMite sales team has been working closely with ININ management to certify the eMite integration and to explore opportunities to make the eMite solution available to as many ININ users as possible. This is an ongoing task which should increase opportunities through Q2 and beyond.

In addition, eMite has been working to make the eMite dashboards available with a well known service desk solution in a similar fashion to the ININ integration. eMite already has a number of customers that have integrated eMite dashboards providing valuable management KPIs over the top of various service desk systems. This integration will provide a second niche market for eMite along the lines of the ININ integration, which has been setting the pattern for building out this specialised opportunity for multiple eMite sales. By the end of FY17, eMite expects to have three such niche markets up and running, providing eMite management dashboard reporting integrated with world leading application solutions. These new customers will come on board via a subscription service, thus building a substantial new base of subscription revenues for the future.