SOURCE: Diligent Board Member Services

Diligent Board Member Services

January 19, 2011 09:00 ET

Record Breaking Quarter Reported by Diligent Board Member Services, the World's Leading SaaS Board Portal Provider

NEW YORK, NY--(Marketwire - January 19, 2011) - Diligent Board Member Services (NZX: DIL) ( ended the 2010 calendar year with an exceptional, record breaking quarter. The quarterly sales performance for Q4 2010 surpassed the previous quarterly record of $US 0.86 million by more than 80%, reporting new annualized licensed fee income of $US 1.56 million. This is the first time Diligent has surpassed the million dollar milestone in new annualized licensing fee income for a quarter. The company now carries more than $US 10 million in cumulative annualized license fees.

Highlights from the fourth quarter of 2010 include a net of 59 new board portal clients, compared to 41 new clients that were added during the fourth quarter of 2009, an improvement of 44%. Diligent now has 456 clients, more than 800 individual boards and more than 12,080 users of the Boardbooks portal. This stellar performance further strengthens Diligent's position as the market leader, with corporations of all sizes and industry sectors increasingly choosing Diligent as their web-based board portal provider.

Net sales revenue was $US 2.45 million for the fourth quarter of 2010, compared to $US 1.54 million for the fourth quarter of 2009, a growth of 59%. Total annualized license fees were $US 10.02 million at the end of the fourth quarter of 2010, compared to $US 6.32 million at the end of the fourth quarter of 2009 - a growth of 59% in annual recurring revenue.

"The outstanding 2010 revenue growth has been achieved by a 'best in class' sales force," said Alex Sodi, president and CEO. "The ratio of sales revenue sold per sales person for the 2010 calendar year is among the highest in the software-as-a-service (SaaS) industry worldwide. The Q4 results of almost $US 0.20 million per quarter, per sales person shows that Diligent is trending well above the highest in the industry." Sodi added, "the introduction of an Apple iPad compatible version of Diligent Boardbooks® in September 2010 and the acceptance of Boardbooks for iPad 1.0 into the Apple App Store in early January 2011 has created unprecedented demand for the Diligent Boardbooks product and dramatically increased an already healthy sales pipeline."

Diligent has demonstrated its ability to drive efficient growth, as demonstrated by increasing its gross margins every quarter this year. The firm has also significantly strengthened its balance sheet fundamentals and its cash flow generation over the past year. "We expect these positive trends in cash flow to continue in 2011," said Steve Ruse, chief financial officer, adding, "These financial milestones demonstrate that Diligent and its outstanding team of professionals are well-positioned to deliver another year of exceptional performance."

About Diligent Board Member Services, Inc (NZX: DIL)
Diligent Board Member Services provides company directors, executives and administrators with Diligent Boardbooks®, an easy-to-use system of securely compiling, distributing, viewing, and archiving materials within a Software-as-a-Service (SaaS) model. 

This document contains forward-looking statements within the meaning of the safe harbor provisions of the Securities Litigation Reform Act of 1995. Terms such as "expect," "believe," "continue," and "grow," as well as similar comments, are forward-looking in nature. Although the Company believes its growth plans are based upon reasonable assumptions, it can give no assurances that such expectations can be attained. Factors that could cause actual results to differ materially from the Company's expectations include: general business and economic conditions, competitive factors, raw materials purchasing, and fluctuations in demand. Please refer to the Company's Securities and Exchange Commission filings for further information.

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