Lava Reports Q2 '98 Results
Lava Systems (Toronto, TSE: LVA) reports Q2 '98 financial results. Revenue of $7.0 million represents a 28% increase over Q2 '97 revenue. A net loss of $4.9 million compares with a Q2 '97 net loss of $650,343. Revenues were down about $800,000 from Q1 '98, according to president and CEO Peter Hamilton, partly because of delays in deals in both the UK and in the U.S. Also, a shift towards software licensing sales contributed to a decline in gross margins during the quarter. During the quarter Lava signed an agreement with UK-based CMG PLC to provide information management solutions to the European financial services market. Lava also extended an existing joint product alliance agreement with J.D. Edwards (Denver). In addition, Lava has promoted Robert Terry to Senior VP and COO, which Hamilton says will increase emphasis on sales to the North American banking and insurance sectors.