9th Oct 2014 06:59
LONDON (Alliance News) - Gresham Computing PLC Thursday said it now expects its full-year earnings to be "materially below" current market expectations, due to a delay in revenue from new Clareti Transaction Control contracts, which it said will now fall into 2015 rather than in 2014 as previously expected.
The software and services company said its continued to make progress in commercialising Clareti Transaction Control, its new matching and reconciliation product, in the first nine-months of the year, with CTC revenue up on last year. It also said its non-CTC parts of the business continue to perform in line with plan.
"However, we now expect that a number of new CTC contracts previously anticipated for 2014 will instead fall into 2015, and as a consequence the board expects total revenue for 2014 to be 10% to 15% lower than current market expectations. As a result, earnings for the full year 2014 are expected to be materially below current market expectations," the company said in a statement.
Gresham Computing said it has a strong pipeline of CTC business, which it said will enhance its CTC customer base and recurring revenue streams.
"We continue to win CTC customers and grow our CTC recurring revenues in line with our strategy. Clearly the delays in signing new contracts are disappointing however, we remain confident that the investments we have made will support further progress in 2015," said Chief Executive Chris Errington in the statement.
The company said its financial position remains strong.
Gresham shares closed trading Wednesday down 26%.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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