Cirata 'getting off the canvas' in wake of WANdisco scandal, new CEO claims as latest results published

The matter remains under investigation by the Financial Conduct Authority but an initial independent probe found issues to have been caused by an unnamed single senior sales employee. The firm’s then chief executive David Richards left the company in the wake of the issue, while the value of its shares dropped by more than 90 per cent.

Stephen Kelly, who replaced Mr Richards as chief executive, said the firm is in the initial stages of recovering from an “existential crisis” as the company’s trading results for the final quarter of 2023 were published.

The figures showed a 23 per cent increase in sales bookings from $2.2m in the fourth quarter of 2022 to $2.7m in the last quarter. The firm’s cash balance is $18m, above guidance of between $16m to $16.5m and attributed to “good cash collections and strong cost management”.

Cirata said it has hired Rich Baker has been appointed as Chief Revenue Officer (CRO) for International, Chris Cochran as CRO for North America and Justin Holtzinger as CRO ALM. It said the changes have led to the removal of a “management layer”.

Mr Kelly said: “FY2023 has been an eventful year for all Cirata stakeholders, a near collapse of the business followed by a herculean effort to rebuild from the ground up. The March 9 announcement represented an existential crisis. Against all odds, the turnaround is well underway. Our Q3 and our Q4 reflect the first steps of a company coming back ‘off the canvas’. Sequential growth in bookings through Q2, Q3, Q4 and transacting with companies such as GM, NatWest and Experian amplify the progress this company has made since the dark days after March 9.

“The new structure of our sales organisation with the leadership of Rich, Chris and Justin reflects a flatter, sharper, more customer focused Cirata.”