Data replication technology developer WANdisco (WAND:AIM) is rebuilding investor confidence as it passes a vital cash flow breakeven milestone.

Shares in the Sheffield and Silicon Valley-based company soared 17.5% to 452.5p on 24 April as it announced that cash burn had been slashed to zero for the three months to 31 March 2017. WANdisco has significantly streamlined its cost base during the past year.

The excitement was intensified by news that the firm had also secured a $4.1m volume-limited, perpetual licence for its Fusion big data replication platform.

WANdisco’s technology allows users to update multiple data storage server computers instantaneously. This cuts downtime in the event of power outages or cyber attacks, for example, and is hugely important for high volume internet business users such as online retailers or banks.

The recent award is the company’s single biggest contract to date but also important is that it was secured through its channel partner agreement with US technology giant IBM. Amazon Web Services and Oracle are among WANdisco’s other channel partners.

The customer is a ‘major financial services multinational,’ according to the announcement and Shares understands the technology will be specifically used to transfer data between the client’s operational and disaster back-up data storage bases.

There’s an exciting growth opportunity if progress can be maintained, Stifel analysts have a 623p price target on the stock. Buy at 452.5p. (SF)

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