LONDON (ShareCast) - Shares in Wandisco sank on Tuesday after reporting an increase in full-year losses driven by increased investment.
Losses before tax almost doubled to $39.4m as the specialist software provider invested to develop and take its Big Data products to market, which saw good momentum and a number of significant contract wins that drove revenues up 40% to $11.2m.

Sales bookings grew 18% to $17.4m thanks to new and renewed contracts.

Its application lifecycle management business gathered new customers, in what the company said was a "growing market" that generated "resilient" subscription revenues.

Last month, the group won a $150,000 bid data contract with another of the world's 10 largest banks, representing its third such deal in as many months and potentially its largest to date.

Chief executive David Richards said: "As 2014 progressed we achieved a marked increase in momentum in our Big Data business, as successful production trials led into some significant contract wins.

"We began 2015 by winning one of the world's top ten banks as a Big Data customer and are addressing a number of exciting new sales opportunities, made more tangible by powerful references from 2014's new customers."

Finncap analysts said the preliminary results are "less relevant" than the strong quarter results released in January, but added that the application lifecycle management business is expected to move into profitability in 2015.

"Investment in the Big Data opportunity and product set is merited (with the risk profile reduced as the company is now fully funded).

"The share price will continue to respond to Big Data contract win announcements, which will reassure us of our expectations of a continuation of the momentum of the 4th quarter of 2014 and 1st quarter of 2015," the broker said.

Shares fell 11.72% to 313.4p on Tuesday at 09:29.

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