Software provider Stream recorded a $369,409 net loss in the December half, partly blaming the result on its former New Zealand business Symetri.

Overall sales revenue fell to $536,445 from $625,236 in the corresponding half of 2017.

Symetri was sold two years ago to Gallagher Bassett under an earnout agreement, in which a portion of the sale price is paid contingent on the business achieving certain earnings.

“The Symetri claims management business that we sold in 2017 failed to generate a sufficient profit during calendar 2018 to trigger an earnout payment,” Stream says.

“However, the earnout methodology is being reviewed in conjunction with an overall review of our agreements with Gallagher Bassett New Zealand.”

Stream warned last August there may not be an earnout contribution.

The former claims management company is looking to bolster its business through acquisitions, and has identified a potential target.

“Directors continue to look at possible acquisitions that will increase the scale and profitability of our business. To this end, we note we have commenced due diligence on a possible acquisition that we believe would achieve these objectives.”

Stream’s core business involves providing software services to New Zealand and UK clients, after its Australian operations entered administration in December 2015 and were liquidated.