Ann: HALFYR: FIN: Preliminary Finzsoft Half Year

• Release Date: 28/11/12 13:05
• Summary: HALFYR: FIN: Preliminary Finzsoft Half Year Results 2012
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FIN
28/11/2012 11:05
HALFYR

REL: 1105 HRS Finzsoft Solutions Limited

HALFYR: FIN: Preliminary Finzsoft Half Year Results 2012

FINZSOFT SOLUTIONS LIMITED
Preliminary Results for announcement to the market
Reporting Period Half-yearly report 30 September 2012
Previous Reporting Period 6 months to 30 September 2011
Amount (000s) Percentage change
Revenue from ordinary activities $4,754 17%
Profit (loss) from ordinary activities after tax attributable to shareholders
$310 (26%)
Net profit (loss) attributable to shareholders. $310 (26%)

Interim / Final Dividend Gross amount per share Imputed amount per share
No dividend is proposed to be paid  0.00 cents 0.00 cents
Record Date N/A
Dividend Payment Date N/A

Comments: Refer to the section "Directors Report - Six months to 30th
September 2012" for commentary.

Dividend Yield Current half year Previous corresponding half year
Dividend Yield* 0.0% 0.0%
Tax adjusted Dividend Yield** 0.0% 0.0%
*Previous year based on annual gross dividend paid of 0.0 cents (2011: 0.0
cents) divided by 30 September 2011 share price of $0.34 per share
** Previous year based on net dividend paid of 0.0 cents (2011: 0.0
cents)divided by 30 September 2011 share price of $0.34 per share

Director's Report
For the Six months ended 30th September 2012

The Directors of Finzsoft Solutions Limited are pleased to report on the
Company's performance for the six months ended 30th September 2012.

First Half Highlights;
There have been a number of milestones achieved during the first half year
period including;
-  Restructured leadership and refocus of strategy
-  Return to profitability
-  Successful delivery to a client of our upgraded Sovereign Core Banking
module and upgraded components of our full lifecycle solution
-  First sale of our next generation Sovereign Business Origination solution

Introduction
During the first six months of the year the Company has changed its'
leadership and is refocussed.  We are now seeing results from these changes
being born out in the return to profitability, the successful delivery of key
projects, continued strong investment in research and development and a
growing pipeline of opportunities based on the market leading products that
are being developed and deployed.

In comparison to the comparative six month period ended 30th September 2011
the company has reported an increase in revenue of 17% to $4.7m.   The
significant investment in our next generation Sovereign Business Origination
solution during the period has offset the return from the increased revenue
resulting in a decrease from the comparative period in Net Profit After Tax
(NPAT) of 26% to $310k.

Finzsoft continues to invest heavily in the research and development relating
to its proprietary and world-class solution, Sovereign and the establishment
of Finzsoft in Asia.
The demand for Sovereign's new modules and functionality, from our existing
and prospective clients, has been very positive, with a further sale signed
after the half year end.  The Directors are confident that from these new
initiatives and subject to forecast sales eventuating, Finzsoft will be
profitable for the March 2013 financial year ("FY13") and the Company will
deliver future returns to shareholders.

The Directors have resolved not to pay an interim dividend to shareholders at
this time.

Principal Activities
Finzsoft is an experienced, mature and proven banking and financial software
vendor.

Finzsoft's proprietary solution, Sovereign, is a world class tier one Core
and Vertical/Point banking and finance software solution.  The Sovereign
solution is an integrated, modular full lifecycle/end-to-end (origination,
core/servicing, arrears management and collections) retail, corporate and
trading bank solution. Sovereign is unparalleled against its competitors
legacy, framework and point solutions, in offering a proprietary, proven,
scalable, modular and full lifecycle product that enables its customers the
option of integrated and seamless vertical and horizontal integration.

The principal strengths of the Sovereign solution are its proven pedigree,
its security, auditability, stability, highly parameterised, configurable and
flexible nature, scalability and through its rich functionality, automated
and paperless processes its effectiveness and efficiency in the delivery of
banking and financial services.

Finzsoft will continue to service these markets and verticals through
offering proactive, innovative, solution based, transformational scalable
fully loaded products and services.

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.

Asia
We have established our presence in this region over the last 18 months and
in the sales opportunities that we have pursued are consistently being chosen
to move through the sale process and we 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, Westpac Bank,
the Royal Automobile Club of Victoria and with a new sale in this region
closed after the half year end.

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.

Increased Investment in Research and Development
The company 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".

Over the last two years we have developed and released our next generation
Business Origination solution, and have made the first sale of this solution
in the current half year.  We have delivered this product to our first client
since the half year-end.  This new origination product has been consistently
well received by existing and prospective clients and we have a number of
well advanced sales opportunities for this product.

The market opportunity for these modular components of our Sovereign
solution, and Finzsoft's competitive positioning in this market segment, is
highlighted in the market commentary recorded below:

"Given the aggressive growth in the Asia Pacific region, the aggressive
lending in both the Housing & the Automobile space, and the new charter of
Customer Centricity, I believe that the Integrated Loans Origination &
Customer On boarding solution companies will experience an exponential growth
over the next many years".  John Weste - Group Vice President - Gartner

"Majority of our Banking customers have realized that some of the biggest
inhibitors in their push for the "Ideal Customer Experience" are the bank's
internal systems and processes around Customer On boarding and Loans
Origination.  To help overcome these operational issues, we recommend that
they not touch their Core Banking or Branch and Teller Systems, instead they
should look to integrate a highly parameterised solution that can work well
with their back end, and integrate well with their various systems (such as
GL, CRM, etc.). Finzsoft' Sovereign Solution is one of those leading
solutions, that is easy to deploy, and integrates seamlessly with a multitude
of legacy systems". Cyrus Daruwala, Managing Director - IDC Financial
Insights, Singapore, May 2012.

After a proven product record spanning in excess of two decades, Finzsoft is
planning to release its next generation of the Sovereign full lifecycle
product in 2013.  Our next generation solution will incorporate Finzsoft's
new generation interface, enhanced functionality, international best practice
modules and an unparalleled horizontally integrated and modular web deployed
Business Origination module.

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
Sovereign product internationally.

Capital Structure
In order for the Company to meet its' expansion plans, particularly into
Asia, it may require a change in the capital structure.  To this end,
Directors are examining options including a combination of new equity and
debt in the next few months.  The Directors are hopeful of securing the first
contract in Asia which may impact on the future capital structure.

Outlook
The second half of the FY13 financial year will see further investment in the
following areas:
o  Continuing our sales and marketing investment in the Asia Pacific region;
o  Investing funds and resources into research and development;
o  Continued review and investment of our delivery and service model;
o  Sales effort focused around the recently released new version of our
origination module.

As a result of these investments and subject to the current sales pipeline
resulting in signed deals, the FY13 financial full year results are forecast
to be profitable and the directors are confident that the company 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

Authorised for issue on the 27th November 2012.

Brent Impey Ian Wills
Chairman Managing Director
End CA:00230330 For:FIN    Type:HALFYR     Time:2012-11-28 11:05:02