Ann: QUARTER: DIL: Diligent Provides Operating Hi

• Release Date: 16/04/14 10:40
• Summary: QUARTER: DIL: Diligent Provides Operating Highlights for Q1 2014
• Price Sensitive: No
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					DIL
16/04/2014 08:40
QUARTER

REL: 0840 HRS Diligent Board Member Services INC (NS)

QUARTER: DIL: Diligent Provides Operating Highlights for Q1 2014

16 April 2014

Diligent Board Member Services, Inc.
Company Provides Operating Highlights for the First Fiscal Quarter 2014

Diligent Board Member Services, Inc. ("Diligent" or the "Company") (NZX: DIL)
(www.boardbooks.com) today provided operating highlights for the first
quarter ended March 31, 2014. Management will provide further information on
Diligent's operating highlights and financial results for the first quarter
after it files its Form 10-Q with the U.S. Securities and Exchange Commission
for the fiscal quarter ended March 31, 2014.

First Quarter 2014 Operating Update

During the first quarter of 2014, Diligent signed a total of 113 net new
client agreements, increasing the number of organizations it services to
2,563. The number of boards served by Diligent increased by 180 to 3,585, and
the number of Diligent Boardbooks users increased by approximately 4,500, to
over 77,100 users. Additionally, upgrade sales to existing clients continued
to be strong worldwide.

Diligent continued to add both public and private companies as clients across
multiple industries worldwide. The Company's client base is now comprised of
52% public companies and 48% private entities. Diligent now services 326
Fortune 1000 companies and 282 NASDAQ listed companies

Diligent's client retention rate remained among what we believe to be the
best-in-class for "Software-as-a-Service" companies. As of the end of the
first quarter of 2014, Diligent's retention rate in terms of the number of
client agreements was 96%, and the revenue retention rate remained above 97%.
Diligent experienced a record level of client merger and acquisition activity
or situations in which the board operations ceased during the first quarter,
representing approximately two thirds of client cancellations during the
quarter and occurring primarily within its U.S. client base.

Diligent closed the first quarter of 2014 with $US 60.6 million in cash
balances and short-term investments and no bank debt, an increase of $US 4.5
million as compared to the cash and short-term investments on December 31,
2013. As of December 31, 2013, approximately $US 5.1 million in obligations
had been incurred related to the restatement and re-audit of certain of
Diligent's financial statements, the Audit Committee's investigation of the
accounting errors that gave rise to the need to restate the Company's
financial statements, and the Special Committee investigation. Of this
amount, $US 3.3 million was paid in 2013 and the balance of $US 1.8 million
was paid in the first quarter of 2014. Additionally, during the first
quarter, the Company paid $US 1.6 million of the $US 2.3 million estimated
cost of building out its European data center. Also, Diligent incurred an
obligation for the previously disclosed and approved compensation of $US 4.4
million for the Chief Executive Officer to be ratably paid in the third
quarter of 2014, 2015 and 2016, which was accrued as of December 31, 2013.

During the first quarter of 2014 Diligent increased its research and
development headcount as the Company focused additional resources on product
development. Diligent added 6 employees to the research and development team
which included Software Developers, Business Analysts and QA professionals.

First Quarter 2014 Business Highlights

During the first quarter of 2014, Diligent achieved ISO 27001 certification
for the security of its Diligent Boardbooks software. ISO Certification
provides all Diligent's users with independent assurance that Diligent's
board portal passes the rigors of an ISO 27001 audit. With this achievement,
Diligent is continuing its commitment to provide further assurance of our
security controls and practices through third-party certifications and audits
such as ISO 27001 and SSAE 16 Type 2 (SOC 1). Diligent has long been a
pioneer in providing leadership with secure access to a company's most
sensitive information - building in security at the document, device, network
and data center levels.

In addition, as previously announced, Diligent released its app for Windows
8.1.  With Diligent Boardbooks for Windows 8.1, directors can easily sync and
view board materials by board or committee, readily access annotation and
voting items, and have the control to manage their own materials or
annotations after meetings. They can navigate with swipes, view agenda items,
and quickly link to specific tabs or pages. Full support of semantic zoom,
finger gestures, and enhanced keyboard and mouse controls is incorporated
seamlessly into the app for tablet or desktop reading. Diligent Boardbooks
users familiar with the iPad app will find a parallel intuitive experience on
Windows devices, giving directors the option to move towards
Windows-supported tablets.

Investor inquiries:
Sonya Joyce
Ph: + 64 4 894 6912

Media inquiries:
Geoff Senescall
Ph: + 64 21 481 234

Safe Harbor Statement

Statements made in this press release that state Diligent's or management's
intentions, beliefs, expectations, or predictions for the future are
forward-looking statements within the meaning of The Private Securities
Litigation Reform Act of 1995. Readers are cautioned that these statements
are only predictions and may differ materially from actual future events or
results. All forward looking-statements are only as of the date of this press
release and Diligent undertakes no obligation to update or revise them. Such
forward-looking statements are subject to a number of risks, assumptions and
uncertainties that could cause Diligent's actual results to differ materially
from those projected in such forward-looking statements. For example, if we
do not successfully develop or introduce new product offerings, or
enhancements to our existing Diligent Boardbooks offerings, or keep pace with
technological changes that impact the use of our product offerings, or suffer
security breaches or service interruptions, we may lose existing customers or
fail to attract new customers and our financial performance and revenue
growth may suffer. Factors which could cause our actual results to differ
materially from those projected in forward-looking statements include,
without limitation, economic, competitive, regulatory and technological
factors affecting Diligent Board Member Services, Inc.'s operations, markets,
products, services and other factors set forth in the Company's updated Risk
Factors filed as Exhibit 99.1 to its Current Report on Form 8-K filed with
the SEC on February 28, 2014 for further information.
End CA:00249537 For:DIL    Type:QUARTER    Time:2014-04-16 08:40:48