Cirata’s journey towards recovery is seeing signs of progress, albeit clouded by deal slippages.
- Interim results show an increase in revenues and reduction in losses, despite challenges.
- Efforts are concentrated on reducing annual costs and achieving demanding booking targets.
- Leadership is keen on mitigating the impact of deal delays on business recovery.
- The company’s restructuring is supported by a significant equity fundraise aimed at cashflow stability.
Cirata’s leadership team, under Stephen Kelly, acknowledges the complexities faced in rebuilding from WANdisco’s challenges. A steadfast focus on restructuring has shown growth in revenues, increasing to $3.4m (£2.5m), and a decrease in statutory losses to $8.6m (£6.5m). Despite these positive indicators, headline numbers have yet to reflect the firm’s efforts.
Cost reduction remains a pivotal focus as the year’s end approaches, with a goal to lower annual costs from $23m (£17.5m) to $20m (£15.2m). Previous cost-cutting measures brought down expenses from $45m (£34.3m) in March of the last year, showcasing significant financial discipline.
Cirata remains committed to its booking guidance of $13-15m (£9.9m-£11.4m) for the full year, noting a strong pipeline predominantly in North America. Customer retention is seen as a key signal of rebuilding trust in the firm’s capabilities, as highlighted by Kelly.
Stephen Kelly emphasises, “Whilst we are making progress rebuilding the company, we knew the rebuild would take time and we are yet to see the fruits of our labour in terms of the headline numbers.” He notes the positive strides made in customer re-engagement and product positioning, which bode well for future operational leverage.
The challenge of deal slippage continues to overshadow improvements, even as focus intensifies on closing smaller deals and improving sales execution. Kelly remains proud of his team’s resilience, asserting their collective motivation towards a revitalised future for Cirata.
To support its restructuring efforts, Cirata announced a $7.2m (£5.6m) equity fundraise in July, aimed at achieving cashflow break-even by the end of 2024. This initiative is crucial in steering the company towards stability following past financial discrepancies.
Cirata’s strategic efforts underline a committed path to recovery, although headline successes remain to be achieved.
