Newgen granted US patent, stock up 7 per cent

The US-based subsidiary of Newgen Software Technologies Limited has received patent from the US Patent Office for Intelligent Check Deposit Machine.

Newgen Software Inc., subsidiary of Newgen Software Technologies announced on Thursday that the US Patent Office has issued a patent for the company's Intelligent Check Deposit Machine, vide U.S. Pat. No. 10,346,813. The machine scans the cheque, validates cheque fields and also gives an acknowledgment to the depositors. It verify whether the cheque is acceptable right at the time of deposit and also scans for physical features like torn edges and punch holes, besides validating for missing fields, pre-dated, post-dated, striking and overwriting.

The Check Deposit Machine enables digitising process at bank and further optimises the cheque clearing cycle and enhances customer experience.

Newgen Software Technologies engages in Business Process Management (BPM), Customer Communication Management (CCM) and Enterprise Content Management (ECM)solutions. The company has a presence in over 60 countries and provides mission-critical solutions to banks, governments, BPOs and IT companies, insurance firms and healthcare organizations.

For Q1FY19, the Newgen Software Technologies' consolidated revenue from operations was up by 23 per cent YoY at Rs. 131.0 crore as against Rs. 106.5 crores in Q1FY19. EBITDA was at Rs. 7.7 crore compared to Rs. 0.6 crore in Q1 FY19 mostly due to implementation of Lease Accounting Standard - Ind AS 116 (Rs 3.9 crores). The company's PAT was at Rs. 3.1 crore as against Rs. 3.9 crore in Q1FY19 due to a steep dip in foreign exchange gains. The company added 12 new customer in the June quarter.

Reacting to this development, the stock of Newgen Software Technologies closed at Rs. 279 per share, up by Rs. 20.60 or 7.97 per cent on BSE. The stock hit a high of Rs. 286.20 per cent on Thursday.