Ann: FLLYR: FIN: Finzsoft FY12 Annual Results

• Release Date: 30/05/12 19:00
• Summary: FLLYR: FIN: Finzsoft FY12 Annual Results
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FIN
30/05/2012 17:00
FLLYR

REL: 1700 HRS Finzsoft Solutions Limited

FLLYR: FIN: Finzsoft FY12 Annual Results

FINZSOFT SOLUTIONS LIMITED
FY12 Annual Results
The Directors of Finzsoft Solutions hereby report on the group's performance
for the year ended 31 March 2012.

Introduction
The March 2012 financial year ("FY12") has been challenging, with a
disappointing result in the second half of the year resulting in Finzsoft
recording an after tax loss of ($557,841) compared to a profit last year of
$545,151.  The primary reasons for this loss are associated with our US
customer non-payment default on services provided and Finzsoft's prudent
withdrawal from a sales opportunity after considerable investment based on
our concerns over the project's risk profile.
Finzsoft has over the past three years, and more significantly over this
financial period, increased its investment:
o In research and development relating to its, proprietary and world-class
solution, Sovereign.
o The establishment and implementation of a leading tier one global leveraged
channel partnership with HCL Technologies;
o In its Asia Pacific sales team and operation; and
o In the establishment of a Joint Venture operation with NZACU to bring
together infrastructure operations to service NZ banking and finance
institutions.
The Board is committed to these investments based on strong market demand for
banking and finance software in these regions. In light of significant
international opportunities, Finzsoft has increased its investment in the
development of the Sovereign banking and finance software solution. The
demand for Sovereign, new modules and new functionality, from our existing
and prospective clients, has been very positive, with signed sales after
balance date. The Directors are confident that from these new initiatives,
Finzsoft will return to profit for the March 2013 financial year ("FY13") and
the Company will deliver future returns to shareholders.
The Directors have resolved not to pay a dividend to shareholders this year.

Principal Activities
Finzsoft is an experienced, mature and proven banking and financial software
vendor. Finzsoft is committed to its strategic vision to be a supplier of
scalable banking and finance software solutions in the Asia-Pacific (APAC)
and Asean regions. Finzsoft's proprietary solution offers a scalable,
integrated, modular and full lifecycle (end-to-end) finance, retail,
corporate and trading bank fully loaded solutions in the APAC and Asean
regions. Finzsoft will continue to service these markets and verticals
through offering proactive, innovative, solution based, transformational
scalable fully loaded products and services.

Finzsoft continues to operate a range of flexible client deployment models,
including on-premise, hosted and Software as a Service ("SaaS") options for
banks, finance companies, building societies, specialised lenders, credit
unions and all banking and finance institutions that lend money or take
deposits.  Our Sovereign solution is an integral component of our client's
business, to the extent that we supply and support the very platform upon
which their business operates. As such, we recognise our role as a strategic
business partner and understand our need to consistently deliver exceptional
customer service along with robust, secure and innovative solutions.
New Joint Venture - NZ Bureau Limited
Finzsoft joined with The New Zealand Association of Credit Unions (NZACU) to
form a new joint venture, NZ Bureau Limited, which commenced operation on the
2nd April 2012.  This operation is an IT infrastructure technology company
providing services to NZACU and Finzsoft for the benefit of their New Zealand
clients which includes credit unions, building societies and financial
institutions.
This collaboration of like-minded organisations will reduce costs and
increase their respective service offerings to clients.

Asia
We opened a Singapore branch office at the beginning of the FY12 year to
capitalise on our HCL partnership and to develop and expand our Sovereign
product offering in South East Asia and India. Over the last year we have
established our presence in this region and have a number of well advanced
sales opportunities which we hope to realise in the near future.

Australia
The Australian market already represents a substantial proportion of our
total revenue. We continue to attract and secure new business in this
market, most notably with market leaders such as Harvey Norman and Westpac
Bank.

New Zealand
The New Zealand finance sector is continuing to witness a consolidation with
the remaining financial institutions becoming stronger and increasing their
investment into Sovereign. Finzsoft retains a dominant market position, by
book value, in the New Zealand finance sector market.

Global HCL Partnership
In FY11, a partnership with HCL Technologies Limited was established, which
leveraged the strengths of both entities.  This company is part of the HCL
group of companies and is listed on the India Stock Exchange.  It is a
leading global technology and I.T. organisation operating across 31
countries, with approximately 90,000 staff.

The partnership allows Finzsoft to effectively expand globally, without the
costs and delays associated with global staff recruitment.  As a trusted
advisor and thought leader, HCL is introducing Finzsoft to a large number of
existing and new banking and financial services customers.  Together,
Finzsoft and HCL can now offer a  fully loaded portfolio of products and
services including technology solutions, software products, consulting,
systems integration, professional services, remote infrastructure management
hosting, disaster recovery and business process outsourcing (BPO).
In FY13 we will set up a Centre of Excellence with HCL consisting of HCL
staff who are fully trained on the Sovereign product so that they can support
all aspects of the sale, implementation and support of Sovereign in our areas
of operation.  This HCL scalable capacity and capability will serve the needs
of our existing and prospective global customers, whilst Finzsoft can focus
on further investment in the development of our solution.

Increased Investment
The group continues to increase its investment in the Sovereign banking and
finance software solution. This will accommodate growth in new markets and
respond to existing client demands for new features and functionality.
Our software architecture and development philosphy is focused on ensuring
that Finzsoft's Sovereign solution remains "best of breed".  This world
class, standards-based architecture allows us to deliver an open and
innovative software platform for a global market.  Finzsoft benefits by being
able to more rapidly add new functionality and deliver increased quality
software. Clients benefit through a lower total cost of ownership, including
improved ease of deployment.
Staff
Finzsoft has a highly skilled team of professionals who are focussed on
developing "best of breed" solutions, in the area of banking and finance.
Finzsoft's growth will come from leveraging these skills and taking the core
Sovereign product internationally.
Outlook
The FY13 financial year will see further investment in the following areas:
o Consolidating our sales and marketing investment in the Asia Pacific
region;
o Investing funds and resources into research and development;
o The expansion of our HCL centre of excellence.
As a result of these investments and subject to the current New Zealand sales
pipeline resulting in signed deals and the HCL relationship delivering sales
with our team in the Asia region, the FY13 financial year results are
forecast to return to profit and the directors are confident that the group
will show greater profitability in subsequent years, to deliver future
returns to shareholders.
For more information on our activities, please refer to our web site
http://www.finzsoft.com

FINZSOFT SOLUTIONS LIMITED
Results for announcement to the market
Reporting Period Full year report 31st March 2012
Previous Reporting Period 12 months to 31st March 2011
 NZD Amount (000s) Percentage change
Revenue from ordinary activities $7,769 13%
Profit (loss) from ordinary activities after tax attributable to shareholders
($558) (204%)
Net profit (loss) attributable to shareholders. ($558) (204%)

 Gross amount per share Imputed amount per share
Final dividend 0 cents 0 cents
Record date N/A
Dividend payment date N/A

Comments: Refer to the attached for commentary from directors on the results
to 31st March 2012.
The figures for 31st March 2012 are in the process of being audited.

Dividends Paid Date Paid Cents per share (non- imputed)
Interim Dividend for the year ending 31 March 2012 N/A 0.0
Final Dividend for the year ending 31 March 2011 N/A 0.0
  0.0

Dividend Yield
 Current full year Previous corresponding full year
Dividend Yield* 0% 6.7%
Tax adjusted Dividend Yield** 0% 6.7%

* Based on annual gross dividend paid of 2.0 cents divided by 31 March 2011
share price of $0.30 per share.
** Based on annual net dividend paid of 2.0 cents divided by 31 March 2011
share price of $0.30 per share.

The Directors
Finzsoft Solutions Limited
30th May 2012
End CA:00223431 For:FIN    Type:FLLYR      Time:2012-05-30 17:00:28