CORK-HEADQUARTERED software firm Qumas had revenues of $12.1 million (€8.9 million) in 2007 but will post a loss of $9 million following a significant investment in product development.
Chief executive Kevin O’Leary said the company was now creating operating profits and would have earnings this quarter of about $500,000. The company expects to have revenues of $16 million this year and $20 million in 2009. Mr O’Leary said Qumas already had maintenance revenues booked for 2009.
“Next year we will generate $2million to $4 million in profit depending on how we run the plan,” said Mr O’Leary. “We invested heavily in our core products and our customer satisfaction levels over the last two years and we are now seeing the benefits.”
Qumas provides software to help life sciences and financial services companies comply with industry regulations.
Mr O’Leary said because it was “anchored in life sciences”, which is not a cyclical business sector, Qumas was relatively protected from the economic downturn.
The bulk of Qumas’s clients are pharmaceutical firms in the US, and Mr O’Leary said it was now focusing on moving into new industry sectors and geographic markets through partnerships.
This summer it signed a relationship with US software-maker Paisley, who will now integrate Qumas DocCompliance product into its own governance, risk and compliance suite. The company is also close to signing a deal with a major US information provider which will enable it to integrate details of new regulations into its software.
The impact of the weak US dollar was “not insignificant” for the firm this year, according to Mr O’Leary, as 80 per cent of its revenues were in dollars, while all of its research and development was carried out in Cork where it employs 55 people.
Qumas signed up a number of new customers this year, including Avigen, PharmaZell, Lantheus Medical Imaging, and Ferndale.
The company is backed by Irish venture capital firms ACT and Delta Partners, as well as US investors General Catalyst and Fidelity Ventures.
