SLI Systems (SLI)

Business description

SLI Systems' core products are e-commerce site search and navigation tools that learn from customer behaviours to improve the relevance of search results and therefore increase sales conversion.

Share price chart

Share chart

Stock data

Market cap.NZ$114.7m
Last closeNZ$1.900
High / Low (52 weeks)NZ$2.8 / NZ$1.6
Stock market listingNZSX
Forecast net cash (NZ$m)7.6
Forecast gearing ratio (%)N/A
TeamTechnology
SectorTechnology

Price performance

%1m3m12m
Actual(20.8)(28.3)N/A
Relative *(20.9)(30.6)N/A

* % Relative to local index

Other companies in sector Show

Acal accesso Technology Group
ADVA Optical Networking Advanced Computer Software Group
Advanced Micro Devices AIXTRON
Allocate Software Allot Communications
Alpha and Omega Semiconductor Amazon
Amino Technologies ANADIGICS
Arria NLG blinkx
blur Group Brady
CML Microsystems Comptel
Craneware Cypress Semiconductor
DDD Group Dillistone Group
dotDigital DSP Group
e2v technologies Eckoh
Elmos Semiconductor EMIS
Emulex Endace
EnWave Corporation Esker
Evolving Systems Facebook
FFastFill First Derivatives
Focus Solutions Group Fusionex International
GB Group GBST Holdings
GFT Group Globo
Himax Technologies Infinera
Inmarsat Innovation Group
InVision IS Solutions
IXYS K3 Business Technology Group
LRAD Corporation Magix
Manpower Software Manz
Maxima Holdings Medicsight
Micro Focus International Micron Technology
Monitise Montage Technology
Morse Netcall
NetDimensions Netflix
Nexus Management O2Micro International
OMG OmniVision Technologies
Optimal Payments Outsourcery
Patsystems Pericom Semiconductor
PLX Technology Prodware
PSI Pure Wafer
Redstone Reed Elsevier
Regenersis RM
SCISYS Secunet
Seeing Machines Seven Principles
Sigma Designs Silicom
Silicon Image SimiGon
Single Touch Systems SinnerSchrader
Software AG Solera
Spansion Spirent Communications
SQS Software Quality Systems AG StatPro Group
Store Electronic Systems Synchronica
Technology sector Texas Instruments
Thin Film Electronics Tikit Group
Toumaz TXT e-solutions
Ubisense Group United Power Technology
VASCO DSI Virtual Piggy
Vislink Vizrt
WANdisco WorkPlace Systems International
Xploite Xplore Technologies Corp
Y/E Jun Revenue (NZ$m) EBITDA (NZ$m) PBT (NZ$m) EPS (fd) (c) P/E (x) P/CF (x)
2012A 15.7 0.4 0.2 0.1 1900.0 64.1
2013A 19.0 (1.4) (1.6) (2.9) N/A N/A
2014E 22.5 (6.5) (6.7) (11.8) N/A N/A
2015E 30.1 (4.0) (4.4) (7.6) N/A N/A

Last updated on 25/03/2014

Investment summary

SLI's interim results at the end of February showed revenue and annualised recurring revenue in line with management's expectations at NZ$10.6m and $21.6m respectively. Growth is expected to accelerate in H2 as newly hired sales staff become productive. International growth (particularly in Brazil), new product introductions (such as Learning Recommendations, which was announced in February) and the retiring of Google Commerce Search at the end of March could also contribute to higher growth in H2. Our DCF valuation, on conservative growth forecasts, a WACC of 12% and a terminal growth rate of 2% produces a valuation of NZ$2.62/share.

Last updated on 31/03/2014

Industry outlook

E-commerce site search is a growth market, thanks to the overall growth in e-commerce and the importance of effective search in converting website visits to sales. SLI System's cloud-based product minimises the initial set-up costs for its customers, resulting in a high ROI in a short time frame. Global e-commerce sales are expected to grow by 17% in FY13.

Last updated on 31/03/2014

Key management

Greg Cross, Chairman
Rod Garrett, CFO
Dr Shaun Ryan , CEO and Founder

Company address

78-106 Manchester Street
Christchurch 8011
New Zealand
View website