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Data software specialist Fusionex International plc (LON:FXI) said it was well positioned to tap into a growing billion dollar Big Data software market when it launches its analytics software in the second half..

George O’Connor of house analyst Panmure Gordon said there was a “fairly decent launch in the wings”, referring to the imminent unveiling of the group’s new GIANT Big Data analytics software.

Spending on Big Data Analytics is expected to increase to over US$187bn by 2019 from US$122bn in 2015, according to the International Data Corporation.

Big data are extremely large data sets that may be analysed by a computer to find patterns and trends, especially those relating to human behaviour. The data sets are often so large and complex that traditional data processing is not sufficient.

Fusionex’s software pushed up revenue growth 38% to RM 43.53mln, while gross profit was up 35% to RM 33.7mln in the first half this year.

However, adjusted earnings (EBITDA) almost halved to RM 7.2mln from RM 16.9mln, but this was expected due to a series of investments geared towards spending cash raised last year in order to fuel the next stage of development, said the broker.

But O’Connor said that Fusionex was not spending cash as aggressively as expected. The broker raised the full year cash estimate from RM70mln to RM86.6mln.

Despite being a period of significant investment, momentum in GIANT contract wins supported its continued progress, winning a total of 68 new contracts by the end of the first half. The broker said the group was well on the way to achieving the 90 client target by the end of the year.

“This will open up new addressable markets for us, substantially expanding the potential reach for our market-leading products, and represents a key milestone in our strategy to accelerate growth considerably over the next few years,” said Ivan Teh, chief executive of Fusionex.

Fusionex’s partnership with US software company allows the group to leverage the sales team in that region, while it continues to build on existing contracts in its main region, East Asia Pacific.

The group said it was confident that it remained on track for future growth.

This article was originally published on www.proactiveinvestors.com and can be viewed in full

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