Enghouse Systems Ltd

ENGH

Equity

ISIN CA2929491041 / Valor 384162

Toronto Stock Exchange (2025-04-08)

CAD 23.08-0.47%

Enghouse Systems Ltd
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About company

Enghouse Systems Ltd is a Canadian-based company that provides a diverse range of software solutions across several sectors, including communications, media, utilities, defense, transportation, and public safety. The company is structured into several divisions, each focusing on specific technological needs. Enghouse Networks offers technology solutions that support digital transformation through network virtualization, leveraging advancements in 5G, cloud computing, IoT, and machine learning AI. Enghouse Interactive focuses on enhancing contact center operations, including remote work capabilities, to drive business growth. Enghouse Transportation & Public Safety delivers software solutions tailored for transit, supply chain, and public safety organizations. Additionally, Enghouse Video provides secure and scalable visual communication technologies, facilitating global connectivity through cloud-based services. Enghouse Systems Ltd is recognized for its comprehensive approach to integrating advanced technologies to meet the evolving needs of its diverse clientele.

Summarized from source with an LLMView SourceSector: Technology

Revenue Growth

In the fiscal year ended October 31, 2024, Enghouse Systems Ltd reported a significant increase in revenue, reaching $502.5 million. This marks a 10.7% growth compared to the previous year's revenue of $454.0 million. The company attributes this growth to its strategic focus on expanding recurring revenue streams, which now make up 69.0% of total revenues.

Profitability and Cash Flow

Enghouse Systems Ltd achieved a net income of $81.3 million, or $1.47 per diluted share, for the fiscal year 2024. The company also reported net cash from operating activities amounting to $132.1 million. This financial performance underscores the company's effective management of operations and expenses, contributing to improved profitability.

Acquisitions and Investments

During fiscal 2024, Enghouse Systems Ltd invested $43.4 million in two acquisitions, Mediasite and SeaChange, which have been successfully integrated into its operations. The company also returned $53.1 million to shareholders through dividends, while increasing its cash reserves to $274.7 million, positioning itself for future acquisition growth.

Financial Position

Enghouse Systems Ltd closed the fiscal year 2024 with $274.7 million in cash, cash equivalents, and short-term investments, and no external debt. This strong financial position highlights the company's disciplined approach to financial management and its readiness for continued growth through acquisitions or organic investments.

Strategic Outlook

Looking ahead, Enghouse Systems Ltd remains committed to delivering sustainable growth and long-term value. The company plans to continue its strategy of operational excellence, customer-centric innovation, and prudent financial stewardship, leveraging its strong financial position to explore new opportunities and enhance its product offerings with AI technology.

Summarized from source with an LLMView Source

Key figures

-22.6%1Y

-41.4%3Y

-51.8%5Y

Performance

28.7%1Y

37.7%3Y

36.2%5Y

Volatility