Intec pays price for deferred deals
Intec Telecom Systems has issued its second profit warning in as many months due to ongoing problems closing key licensing deals.
Updated guidance from the BSS firm states it has experienced further deferrals since it issued its first warning about the problem mid-February, meaning fiscal 1H10 revenues - for the six months to March 31- were likely to be 10-15% below market consensus.
The deferrals mean new orders for the financial year-to-date are down around 5% year-on-year, and the firm warns the problem could impact full-year profits if current market trends continue.
Those trends include reduced infrastructure spending by carriers in the EMEA region, and increased competition in key markets, which is putting pressure on pricing.
Business in the Americas and Asia Pacific regions remained on-track, however, and a cost-reduction program is bearing fruit.
The firm provides billing and CRM services to carriers including AT&T, China Mobile, Deutsche Telekom, France Telecom, O2, T-Mobile, Telefonica, Vodafone, and Verizon.
Intec’s profit warning triggered a 40% fall in its share price to £0.575 (€0.645), and a gloomy prognosis from analysts about its ability to compete with Indian rival Subex, The Guardian reports.
The firm is due to announce its 1H10 results on May 20.