28th Nov 2013 09:09
LONDON (Alliance News) - Publishing Technology PLC saw it shares fall sharply Thursday after it warned that it now expects its full-year results to be below market expectations and similar to last year's result as it brought forward research and development spending, and as it dismissed rumors that it may be in takeover talks.
The provider of content systems, audience development and content delivery software writes off R&D expenditure on the period in which it is incurred. In a statement, it said it delayed the expected reduction in R&D spending this year as it brought forward some spending planned for later, notably on the incorporation of web technology HTML5.
It said the decision to proceed with integrating HTML removes some of the obstacles facing its 'advance' platform. It will be able to be used on Apple Mac's, increases the cloud-based options for the programme, and allows it to be used as a one-web-site, any-device platform.
"This additional expenditure and the knock on effect on revenue and profits in 2013 does not impact the group's strategy or its expectations for 2014. The outlook for 2014 remains a steady improvement in recurring revenue from new products and services, and a decline in the rate of investment in research and development," it said in a statement.
It added that the implementation of recent updates for its pub2web and advance products will boost recurring revenue in 014.
Publishing Technology also sad its joint venture in China is set to deliver an operating profit in 2013, with revenues more than double those posted in 2012.
"The board is aware of certain speculation and comment regarding takeover discussions involving the bompany. However, the board wishes to take this opportunity to announce that the company has not received any approach, either formally or informally, regarding a potential takeover of the company and therefore no such discussions have taken place," it added.
Publishing Technology shares were down 43% at 335 pence early Thursday, the biggest decline on AIM.
By Steve McGrath; [email protected]; @SteveMcGrath1
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