Bravura Solutions - 01 May 2007 Bravura Solutions Limited third quarter cash flow

Bravura Solutions Limited third quarter cash flow

01 May 2007 Bravura Solutions Limited third quarter cash flow

Sydney, 30 April 2007 (ASX: BVA) – Bravura Solutions Limited (Bravura) – a leading supplier of wealth management applications and professional services – today reported solid net cash flows for the quarter ended 31 March 2007.

Net operating cash flows for the quarter ended 31 March 2007 were approximately $2.1 million, an increase of approximately $1.7 million over the previous quarter. This increase was achieved while continuing budgeted expenditure on further expansion in Asia, supporting development for existing clients and new opportunities.

Significant impacts on cash flow in the quarter included:

Bank of New York Rufus business acquisition – The Rufus business was acquired on 1 December 2006 and the quarter ended 31 March is the first full quarter of operations since the acquisition. Customer invoices only began converting to cash in February of this quarter contributing approximately $13.6 million to customer receipts.
Ongoing research and development (R&D) commitment – An additional $2.5 million was spent on R&D to upgrade the flagship Talisman and Sonata suite of applications. This R&D commitment is consistent with the directors’ forecast R&D expense of $9.0 million for the year ending 30 June 2007.
Integration costs – A number of non-recurring integration costs associated with the acquisition of the Rufus business. These costs were consistent with management’s expectations and totalled approximately $1.1 million for the quarter.

The Board is delighted with the progress relating to the integration of the Rufus and AB Prodata acquisitions and development of the Talisman and Sonata applications. The Directors reaffirm the business is tracking in-line with the forecasts for the year ending 30 June 2007 outlined in the recent entitlement issue prospectus. The successful equity raising of $40.6 million in April has significantly reduced debt levels and will further enhance cash flows.