Perth-based eLearning technology company HarvestRoad Ltd has forecast a loss for the financial year of $650,000 as a result of incurring additional costs associated with over $1 million in deferred contracts.
The company said these contracts are now expected to be invoiced in the first quarter of the next financial year.
HarvestRoad highlighted Other reasons for the forecast loss including additional costs associated with extended marketing activities with IBM and the delivery of the USA 48 State Education Panel Contract opportunity with MiCTA-ATA Alliance.
HarvestRoad expects gross revenue for the year end 30th June 2006 to be approximately $6 million.
The company projects positive cash flow for the six months ended 31 December 2006 which includes receipts of monies previously invoiced to ILCE and contracted receipts from BAE.
Last month, the company's learning object repository eLearning solution HarvestRoad Hive was chosen by APS IT-diensten, a partner of the Dutch Education New Program Matrix project, to manage teaching materials for primary, secondary and vocational education in Holland in a trial project involving 100 pilot schools.
HarvestRoad has recently been offered $1.4 million under the AusIndustry Commercial Ready Grant program to support the development and commercialisation of its digital publishing system for electronic performance systems support for the defence and aerospace industries.
At 1304 WST, shares in HarvestRoad were down .5 cents to 13 cents.
