21st Jul 2015 06:53
LONDON (Alliance News) - Cloud computing services company Nasstar PLC on Tuesday said that while its first half trading in 2015 was in line with its expectations, it now expects to miss its forecasts for the full year due to a series of challenges set to hit the business in the second half.
Nasstar said the first half of the year has been in line with its expectations, with cost cutting programmes completed on track and the company becoming one of a few partners in the UK to join the Microsoft Cloud Solution Provider programme.
But the group said some unexpected issues are now clouding its outlook for the second half, meaning its full-year results, though an improvement year-on-year, are now likely to miss its forecasts.
Among the issues, Nasstar's largest direct client in the UK was acquired in August 2014, and the company has now been informed that this client will consolidate its IT services in the second half, meaning Nasstar will lose its business.
In addition, Nasstar's largest customer overall has signed a direct enterprise licensing agreement with Microsoft. While Nasstar will not lose the customer and will continue to deliver the same services, it will no longer receive licensing revenue for Office and Exchange products from this customer.
Also, Nasstar said reorganisation programme at two customers of its E-Know and one for its Kamanchi product have seen reductions in user numbers.
By Sam Unsted; [email protected]; @SamUAtAlliance
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