ANT

AVOID

07/12/2011 Ben Jaglom

Digital TV software and services specialist ANT (ANTP) has warned of delays amidst lengthening 'sales and development cycles'.

The AIM-quoted venture issued a profit warning for the year to December in which it declared it expects a 'delay in both the shipping of products by our customers' and the closing of its new license sales which will lead to results below market expectations, adding there was a 'decrease in gross margin' and an increase in operating losses.

Despite this it insists management will continue to build what it describes as a 'strong licensee base' and will focus on 'managing overheads and preserving cash'. ANT enthused it has spent the recent period continuing 'to invest in product differentiation'.

Analysts at house broker Arbuthnot widened their forecasts following the announcement from a loss of £100,000 to £970,000 on sales downgraded from £5.1m to £4.1m. In 2012 profits of £700,000 were downgraded to a loss of £200,000.

Last rated by Growth Company Investor at 48p in 2009 the shares have performed dismally since, currently trading at 15.75p. Amidst a challenging market we believe that better value exists elsewhere in the sector with the company experiencing considerable pressure on margins and with the possibility of a maiden profit now further off. Stay clear for now.