26th Nov 2013 11:31
LONDON (Alliance News) - Shares in Software Radio Technology PLC dropped 14% Tuesday after it posted lower revenue and a wider pretax loss in the half year ended September 30.
Software Radio Technology, which produces wireless radio technology and products for use in the maritime industry, also warned that meeting market expectations for full-year results is not certain.
Revenue was GBP3.2 million in the half, down from GBP3.5 million in the previous year, but in line with its reduced forecast given in October.
Software Radio Technology posted a pretax loss of GBP434,440 in the half year, widened from a pretax loss of GBP171,186 a year before. Administrative expenses rose to GBP1.9 million from GBP1.7 million in the previous year.
In the second half, Software Radio Technology said it expects to see a healthy contribution from its core business and contributions from various projects which the company said are likely to convert into material orders.
The company acquired 3D visualisation-software company GeoVS Limited after the period end, which it said would be a new source of recurring revenue. GeoVS was purchased with the issue of 3.1 million shares, worth approximately GBP955,000 at the time.
The company said it looks forward with confidence to continuing its long-term growth, but cautioned that its achievement of market forecasts for the current full year was dependent on projects and mandates being implemented before the year end.
Shares in Software Radio Technology were trading down 14% at 28.50 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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