Identity management software provider, Intercede, has issued a trading update to the market with news of two contracts in the telecoms sector. Intercede will supply MyID (its identity management platform) software licences, annual support and maintenance and professional services. The combined FY14 revenue value of these new accounts (one is in the US and one in Europe) is expected to be up to £2m. Given Intercede’s FY13 revenue was £6.73m (down 3% on the previous year), £2m is not an insignificant sum. Furthermore, management says there is the possibility of growing this value “significantly” in the future, and that it is now more confident the firm “will meet its growth targets and market expectations for the year”.
For the year to end March 2013, Intercede saw its operating profit swing to a loss of £764k, from a £829k profit in the previous year (see more here). This was largely the result of an increase in product development and headcount (administration expenses increased 24%). It therefore goes without saying that Intercede needs those investments to start paying off.