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Expect improvement under new Halogen Software boss, says Industrial Alliance

Canadian tech

 

Canadian tech
Halogen Software CEO Les Rechan.

Industrial Alliance Securities analyst Blair Abernethy says he expects to see improved bookings under new Halogen Software (Halogen Software Stock Quote, Chart, News: TSX:HGN) CEO Les Rechan, who took the helm of the company last November.

On Thursday, Halogen will report its fourth quarter and fiscal 2015 results. Abernethy expects the company will post an EBITDA loss of $346,000 on revenue of $17-million, a topline that is in-line with the street’s expectations.

The analyst says he expects progress in organic growth, but cautions that is not an overnight proposition.

“Halogen has also been shifting its strategy towards being more open to partner relations and is seeking to develop an ecosystem around its products,” says Abernethy. “While these efforts will take several years, we will be watching for additional progress in this area. We continue to believe that Halogen has a significant upsell opportunity within its current installed base as customers have only purchased an average of ~2.3 of 10 available product modules. We will be watching for continued signs of module cross-selling success and increased market penetration in Q4.”

Abernethy says that while Halogen has not been profitable because it has invested heavily in sales and marketing in recent years, he expects that it will become EBITDA positive by 2017, and perhaps sooner than that. For 2016, he anticipates bookings will improve as the year progresses.

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About The Author /

Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.

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