Intelligent Environments falls short of expectations

Intelligent Environments falls short of expectations

UK retail banking software vendor Intelligent Environments (iE) is warning that full year trading will fall below expectations due to delays with a large contract at the end of the period.

In a trading update, iE says total revenues for 2005 were £3.2m, up four per cent on 2004, but still short of expecations. This was due to delays with a major AM Converter project expected in the fourth quarter, which is now forecast to close in H1 2006.

The vendor says overall trading recovered in the second half of 2005, compared to the first half, with revenues increasing by seven per cent to £1.7m. But iE failed to make up the shortfall in revenues in H1 and as a result the vendor's full year operating loss will be around £0.2m, compared to a loss of £0.5m in the previous year.

But iE says it signed a number of orders which will support long-term revenue growth, including a global contract with HSBC for a work site marketing system.

The vendor has also secured new customers via its partnership with card processor Certegy and closed a second contract with a global retail bank through its alliance with First Data for a credit card system which should go live in the first quarter of 2006.

Looking ahead, iE says it is "well placed to continue the financial recovery displayed in the second half of 2005 as costs continue to be reduced and the backlog of orders is in excess of this time last year".

IE shares were down 4.10% in mid-afternoon trading to 2.88 pence.

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