A small number of high value contracts are unlikely to be recognised in 2017, while the delivery of product updates to address certain recently-identified performance issues and back-end integration is taking longer than expected.
Wait, it gets worse …
The broadening of the company's product portfolio, which is primarily intended to address the corporate sector, is behind schedule. Accordingly, the conversion of opportunities into firm orders is taking longer and requiring more investment than was initially anticipated.
The board said it currently expects to report a loss for the full year. The board is satisfied that the group's cash and available facilities, which are in the region of €2.2 million, are sufficient for its current requirements.
A formal process is now under-way to strengthen the executive management team including the recruitment of both a group chief operating officer and a group chief technology officer to lead the operational and development teams. This is intended to accelerate the internalisation of the group's development activities, ensure its products remain competitive in fast-moving markets, and to enhance the group's sales capacity.
The shares were down by 40% at 58.8p in mid-morning trade.