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Source: ONE News -
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Online accounting software company Xero anticipates it will break even in the final quarter of 2011.
Chairman of the NZX-listed company Phil Norman told shareholders at its annual meeting in Wellington it had acquired 10,000 customers in its first three years, and was on track to be in the black once it achieved 30,000.
"It is anticipated this will happen in Q4 of 2011," Norman said.
The company, which raised $29 million in capital in June, reported an annual loss of $6.75 million in the year to March 31, 2009.
Norman said the company had enjoyed healthy customer growth in the United Kingdom with more than 4,000 customers now signed up.
It was now on track with plans to enter the United States market in the next 12 months.
"Break even is still in the future and we will manage the business to break even as quickly as we can," Norman said.
He said the number of overseas customers now meant the company, which had bases in New Zealand, Australia, the UK and the US, now derived more than half of its monthly revenue offshore.
Co-founder Rod Drury said the capital raising had meant the company now had a "war chest" to enable it to continue to growth.
He said Xero had now come to the end of its first stage of development and the board was committed to building a business for the long term.
Resolutions fixing the auditor's remuneration and confirming the board positions of Graham Shaw, Guy Haddleton and Craig Winkler were passed.
Norman said the company would buy back approximately 500,000 shares on the market in the near future in order to offer employees a share scheme.
