ComOps CEO-elect remains bullish

Beverley Head
Friday, 25 November 2011 05:22

IT Industry - Listed Tech

Daniel Sheahan, the CEO-elect of listed software company ComOps, remains bullish about the company's prospects in the coming 12 months in spite of a challenging year for the company, and a share price that has dwindled to just 1.7 cents.

Mr Sheahan, who will take up the role of CEO next year, this week said that he planned to 'grow the company substantially in 2012' and that the whole purpose of 2011 had been about setting the company up for growth and getting the right depth of management in place. He also plans to begin an international push in the second half of 2012.

In a notice to shareholders this week, Richard Bradley, the company's outgoing managing director indicated that this would be his last quarter in the role. He acknowledged that while the company had restructured during the year in readiness for planned growth in 2012; 'The year will finish somewhat flat as compared to the previous year.'

In the same notice Mr Sheahan indicated that the entire sales team of the organisation had been replaced, which he acknowledged had come at a cost. There had been an initial drop in the pipeline he said, but noted the effects of the overhaul should deliver improved top line revenues starting this quarter.

The positive commentary will be welcomed by shareholders who have seen the company buffeted through the year. In May the company survived an attempted management spill, and has also had to weather the suspension of its shares from trading on the ASX after failing to provide full year financial reports for the year to the end of December.

Earlier this month it was forced to respond to a query from the ASX regarding its ongoing ability to fund its operations. In a letter to the ASX the company responded by indicating that it expected operating cash flows to be positive in future quarters, and pointed to a historical trend for the December quarter to deliver strong cash receipts.

Separately ComOps announced this week that its chairman Thomas Hartigan had stood aside for medical reasons and been replaced by interim chairman and board member Alex Ninis.