The Integrated Research Limited (ASX: IRI) share price has jumped in early trade after the software company reported a record full-year result prior to market open.
What did Integrated Research announce?
For the year ended 30 June 2019 (FY19), Integrated Research announced that it had passed key milestones in hitting $100 million in revenue and $20 million in profit for the first time.
The Aussie performance management software group increased net profit after tax (NPAT) by 14% on the prior corresponding period (pcp) to $21.9 million, at the top end of its July 2019 guidance range.
The strong profit result was made possible by a 19% increase in new licence sales throughout the year, which saw revenue surge 11% on pcp to $100.8 million.
The biggest contributor to revenue was the group's Unified Communications and Contact Centre segment, which comprised roughly half of all earnings despite a 7% decrease on pcp.
Payments revenue surged 92%, albeit off a low base, to $16 million for the year largely thanks to a combination of new and renewal business, while the company's Infrastructure segments increased by 28% to $26.3 million.
However, management is not resting on its laurels following the strong result, with gross spending on research and development maintained at 19% of revenue while Integrated Research's earnings before interest, tax, depreciation and amortisation (EBITDA) remains at 40%.
Positively for shareholders, Integrated Research's net profit after tax (NPAT) margin edged higher to 22% (versus 21% in pcp) as NPAT surged 12% higher for the year.
On the dividend side, Integrated Research directors declared a fully franked, interim dividend of 3.75 cents per share (cps), which takes the company's full-year dividend to 7.25 cps (versus 6.5 cps in pcp).
Foolish takeaway
All in all I think this morning's result was a positive one for Integrated Research and its shareholders, underscored by the strong profit numbers and margins.
Investors look like they tend to agree, with the Integrated Research share price trading more than 5% higher at one point in morning trade and currently trading 3.86% higher at time of writing. Overall, the shares have climbed nearly 60% higher since the start of the year.
