17/03/2008
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.
Growth Company Investor is the UK’s leading authority on small-cap and AIM companies. You can gain immediate access to all the recent share recommendations with no obligation, with a free 30-day trial. Click here to join today.
| Market cap: | £4.1m |
| PE Forecast: | 11.8 |
| Share price: | 16.5p |
| AIM | £2.39m |
9.62p
|
0.00p
|
|
| Other company articles: |
| 15/08/2008 |
| 17/03/2008 |
| 02/01/2008 |
| 02/05/2007 |
| 01/05/2007 |
Free Business Banking
Free banking for UK businesses - apply online for free business bank accounts and payment cards.
Find Small Business Banking Services at Ask.com
Whatever type of banking services you're looking for, find them with Ask.com. Browse a wide range of financial providers and find what you're looking for in seconds.
Compare High Interest Bank Accounts
Compare high-interest current and deposit accounts and apply online..
