29th Apr 2015 08:08
LONDON (Alliance News) - Feedback PLC saw its shares drop Wednesday morning after it warned that its loss in the current financial year will be wider than current market expectations, even though its revenue will meet hopes.
The medical imaging software company said its loss will be wider than expected due to contractual settlement costs, higher sales of less-profitable products, and the timing of revenue recognition for its new TexRAD texture analysis software product.
It also noted that TexRAD will be used by its exclusive partner Imaging Endpoints II LLC for imaging core lab purposes in a forthcoming drug trial in the US that is studying a potential treatment for colorectal cancer patients.
Feedback said it is continuing to seek to broaden its profile in the medical imaging software sector and is in active discussions with a number of potential customers for research versions of the TexRad product.
"We continue to manage our limited working capital resources so as to maximise opportunities with customers and also to continue to develop the company's products," it added.
Sanlam Securities was forecasting that Feedback will report a pretax loss of about GBP260,000 and a loss per share of 0.14 pence in the year that ends May 31. Feedback reported a pretax loss of GBP471,000 in its previous financial year and a loss per share of 0.35 pence.
Feedback shares were down 13.0% at 2.00 pence Wednesday morning, making it one of the worst-performing stocks in the AIM All-Share index. The stock is still up 56% so far in 2015.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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