Optiva Inc. Reports First Quarter 2019 Financial Results

TORONTO, Feb. 6, 2019 /CNW/ - Optiva Inc. (TSX: OPT) (the "Company"), an innovative software provider of mission-critical, cloud-native, monetization solutions to leading communication service providers (CSPs) globally, released its financial results today for the quarter ended December 31, 2018.

Financial Highlights

"In Q1, we focused on the execution of our Strategic Plan," said Danielle Royston, CEO of Optiva. "Our Customer Success program continues to progress, and planned R&D investment of $100 million is now resulting in our first customer deployment on the public cloud. Our collaboration with Google Cloud Platform has led to the innovation and cloud-native transformation of our products, equipping Optiva to bring public cloud to telcos in 2019 and offer customers game-changing competitive and cost advantages."

First Quarter 2019 Results

• Revenues declined by $6.8 million relative to the first quarter of fiscal 2018 due to a reduction in orders from customers, loss of certain customers and lower third party revenue. The Company adopted IFRS 15 - Revenue from Contracts with Customers, effective October 1, 2018 on a prospective basis.
  
  
• The Company's costs of revenue and operating expenses declined by $70.7 million relative to the first quarter of fiscal 2018 mainly due to lower restructuring costs, research and development costs, and lower cost of revenue.
  
  
• First quarter 2019 research and development expenses included $3.2 million of investment in cloud innovation. In 2018, the Company invested $14.0 million in cloud innovation, bringing the total to $17.2 million so far. We expect to invest up to another $82.8 million in cloud innovation over the next two to three fiscal years.
  
  
• The net income for the quarter is $0.5M compared to a loss of $64.5 million last year mainly due to a decrease in operating expenditures this quarter and the restructuring expense of $47.0 million incurred in the comparative quarter of fiscal 2018.
  
  
• The Company consumed $1.9 million in cash from operating activities in the first quarter ended December 31, 2018, primarily due to payments associated with restructuring.

Business Highlights

• The Customer Success metric is showing improvement for the period July to December, increasing to the high 30s and up from 33%.
  
  
• Migrated Optiva Wholesale Billing Solution for a Tier 1 telecom service provider in Australia to the public cloud and on Google Cloud Platform.
  
  
• Deployed a new mobile virtual network enabler (MVNE) platform for a Tier 1 telecom provider in Latin America.
  
  
• Launched Optiva Charging Engine for postpaid, multi-play and converged product offerings for Middle East telecom leader.

Conference Call

Optiva Inc. will hold an analyst call tomorrow, February 7, 2019, to discuss its Q1 2019 results. CEO Danielle Royston and Interim CFO Anin Basu will host the call starting at 8:30 a.m. Eastern time. A question and answer session will follow management's discussion.

Date: Thursday, February 7, 2019
Time: 8:30 a.m. Eastern time 
Toll-free (Canada/US): 1-800-478-9326
Local: 1 (416) 340-2218
Reference number: 4298672
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization.
A replay of the call will be available via Optiva's website (www.optiva.com/investors/)   Media Inquiries: media@optiva.com

About Optiva Inc.

Optiva Inc. is leading the telco industry and its innovative customers around the world by offering next-generation software solutions to help them leverage today's digital technologies. Our portfolio of monetization products enables real-time billing, charging, policy management and user experience that are critical to our customers' growth and performance. When deployed in the cloud, Optiva™ solutions deliver the most impact for the best value. Our vision, market knowledge, analytical insights and unparalleled Customer Success Program ensure our customers are equipped to achieve their strategic business goals today and into the future. Established in 1999, Optiva Inc., can be found on the Toronto Stock Exchange (TSX: OPT). For more information, please go to www.optiva.com.  

Caution Concerning Forward-Looking Statements

Certain statements in this document may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this document, such statements use such words as "may," "will," "expect," "continue," "believe," "plan," "intend," "would," "could," "should," "anticipate" and other similar terminology. These statements are forward-looking as they are based on our current expectations, as at February 6, 2019, about our business and the markets we operate in, and on various estimates and assumptions. Our actual results could materially differ from our expectations if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. As a result, there is no assurance that any forward-looking statements will materialize. Risks that could cause our results to differ materially from our current expectations are discussed in Company's most recent Annual Information Form, both of which are available on SEDAR at www.sedar.com and on Optiva's website at www.optiva.com/investors/. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward- looking statements. Optiva does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

SOURCE Optiva Inc.