I was just revisiting some of my investment notes on another quite comparable company - Technology One (TNE). It operates a similar business model, but in my view does it a bit better.
It also charges a one off initial license fee, however it also charges consulting fees and an annual license fee. This structure allows it to minimise revenue and profit volatility, as one off license fee revenue per the last report made up only 28% of revenue as opposed to over half for IRI. This difference is probably a significant factor in explaining why IRI currently trades on a forward PE of around 20 and TNE on about 30.
IRI management - If you could please copy this strategy it would be much appreciated. I would probably even give you some of my capital.
Regards
Gralynchett
IRI Price at posting:
$1.04 Sentiment: None Disclosure: Not Held
(20min delay)
