Dublin travel software firm Datalex has reported a 19pc fall in revenues to US$5.4 million in its third quarter and said it now expects a full-year loss of US$3 million.
The firm said the fall in revenues was driven by the reductions in customer spending on professional services, which was a direct consequence of the current difficult conditions facing the travel industry and the broader economy.
Datalex said it is likely these customer budget constraints will persist well into 2010.
Some good news
However, on a positive note, the firm’s transaction revenue has continued to grow, with third-quarter transaction revenue showing a 22pc increase on the same quarter a year previous, and a 33pc increase in the year to date to US$10.4 million against the same period in 2008.
The firm said despite the continuing market and economic challenges, and the increasing length of the new business cycle, it is pursuing a number of significant opportunities, and expects to conclude two new contracts before the end of 2009, for delivery in 2010.
Datalex said it had cut its costs by 13pc over the first nine months of the year compared to the same period a year previous.
The firm also said the dispute it is pursuing with one of its customers, Flight Centre of Australia, in relation to the deployment of software at their travel agency business, is unlikely to be resolved by the end of the year.
In terms of outlook, Datalex said that given the continuing challenging market conditions and the impact of the termination of its Flight Centre business relationship, it now expect a loss in the region of US$3 million and EBITDA of US$1.5 million for the full year 2009. This is compared to a market consensus loss of US$1 million – US$1.5 million and EBITDA of US$3.5 million -US$4 million.
Article courtesy of businessandleadership.com