Shares in WANdisco (WAND) tumbled by nearly a fifth on the news that the live data group’s bookings for the six months to June fell year-on-year from $10.2m (£7.9m) to $9m. While big data bookings for its flagship Fusion product came in at $6.2m, against $7m, source code management bookings were $2.8m, down from $3.2m.
But in other ways, the trading update was encouraging. The group had $18m in cash as at June. And its relationship with IBM has progressed further. Indeed, WANdisco’s associated royalties have risen from 30 to 50 per cent. Furthermore, it now has a guaranteed annual minimum royalty commitment.
The group also developed its partnership with Microsoft. For broker Peel Hunt, Microsoft should help WANdisco’s revenues shift from harder-to-predict, large and mostly IBM-driven deals to those with lower, but recurring, revenues, which will rise over time.
