Four months after listing on the ASX, technology company DTI Group has slashed its revenue and profit guidance for the current financial year after being hit by delays in the awarding of prospective contracts, deferred deliveries to the US market and softer sales in the US.
The company said revenue for 2014-15 would be about $15 million, compared to a prospectus forecast of $24.1 million.
Its net profit is now tipped to be between zero and $300,000, compared to the prospectus forecast of $2.58 million.
The forecast sales for 2014-15 will be the lowest the company has reported for the past five years.
In terms of profit, the company incurred a small loss in 2011-12 but has been profitable in other years.
“The major opportunities which formed part of the company’s financial forecast for 2015 have been deferred and it is unlikely that, if awarded, these opportunities will result in any significant revenue for this financial year,” the company said.
But DTI said outlook in the mobile security market remained strong.
“This is reinforced by the record number of prospects being pursued, which total over $200 million in revenue,” it said.
DTI recently won contracts to supply its video surveillance systems to new transit buses in the US and France, as well as a new fleet in Brisbane, for undisclosed sums.
DTI shares closed 12 per cent lower to 36 cents per share, after trading as high as 45 cents last month.
