Verimatrix says its decision to accelerate its transition to more recurring revenues has been validated following a mixed second quarter.
The security company’s core software business was down 20% year-on-year, at $35.5 million.
Overall revenues were up 18% at $52.2 million including $16.6 million revenue from the NFC patent licensing program with major OEMs.
Amedeo D’Angelo, chairman and chief executive officer of Verimatrix, said: “Our shift to a subscription-based business, including through SaaS offerings, needs to be more radical, even if this will affect short-term recognition of revenues.”
Verimatrix wants recurring revenues to represent 70% of its business in 2024 compared with 33% today.