Financial software group Norkom says its revenues for the six months to the end of September are expected to be between €22m and €22.5m.
This is down from the €24.6m for the same six-month period of the previous year and is due to a longer sales cycle and the delay in new regulatory guidelines in Asia. Its shares plummeted 24% to close at 95 cent in Dublin as a result.
In a trading update, the company says it is also expected to increase investment in sales and product development and so expects to report earnings of about €1.2-1.5m compared to €4.5m for the six months to September 2009.
However, Norkom adds that its sales pipeline volume and activity are both higher and its US operations are seeing a return to growth.
Norkom chief executive Paul Kerley says that the company's long-term prospects continue to remain positive with the underlying growth in demand in the market is increasing, particularly for our packaged solutions.
He said the company expects a modest return to revenue growth in the second six months of fiscal year 2011 compared to the same time last year. Revenues for the full year are set to be at similar levels to the previous year.
Norkom will issue its half yearly results on November 9.
