A few months after issuing a profit warning, training software specialist NetDimensions has duly delivered its disappointing calendar year 2007 results.

Chief executive Jay Shaw, the American head of this Hong Kong-based venture, admits that ‘we missed our pre-IPO numbers by a mile’, as revenues pencilled in for $6.3m (£3.1m) came in at just $4.3m (£2.1m), mainly due to slippage on a major deal.

Shaw concedes that despite signing a hundred or so smaller customers, a number of other larger contracts were delayed. ‘We had five good-sized deals that we expected to complete that either were delayed or were cancelled’ – at least one of them due to the economic environment.

NetDimensions has historically been heavily focused on selling its learning-management software to the financial industry but, due to recent market turmoil, Shaw is vigorously ‘de-emphasising’ this now. Nevertheless, this part of the business throws off cash and made a small profit of $146,303 before exceptional costs last year.

Recently, the company has been investing in its sales effort in the UK, Germany, the Middle East and the US, as well as in a number of product upgrades, including compliance-related product versions that have already been sold to Cathay Pacific and engineer ABB. Furthermore, a joint venture has created a new product that will offer clients an online platform to create, manage and deliver their own content on demand.

For 2008, house broker Landsbanki is forecasting $5.5m sales, profits of $900,000 and earnings of 2.8c (1.4p), placing the shares, down from an issue price of 62p, on a forward p/e of 11.8. NetDimensions' future is uncertain until its flight from financial markets proves a success. Avoid.

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