CMS WebView looks for cutbacks as TDI sales fail to materialise
29 November 2004 | 5340 views | 0
Market data technology outfit CMS WebView is looking for cost-saving cutbacks under a strategic review initiated after failing to meet targets for its proprietary TDI software.
The company says it is looking at all parts of the business for savings, including sales and marketing, overseas operations and central administration.
In a statement, the company says: "Whilst the directors remain confident of the advantages of the TDI product, they believe that the sales cycle for complex software products such as TDI has become longer than previously expected."
The company's shares lost a third of their value on the news, slipping to 2.25 pence in early morning trading.
The firm insists that ongoing customer support and the continuing development of TDI remain core to the business and the service to existing clients will be unaffected.
The statement continues: "A key objective of the strategic review is to swiftly apply actions that preserve the company's balance sheet strength by ensuring that the costs of the business reflect the current lower than anticipated level of income while maintaining the ability to promote and market TDI and associated products to exchanges and banks."
The company reported a 51% drop in turnover to £442,000 for the six months ending 30 June 2004, as a campaign to market the TDI product in North America contributed to increased losses of £778,000 for H1 2004.