Financial software provider Norkom this morning warned it expects its H1 revenues to fall by about 10 per cent next year.
In a trading update Norkom said it believed that as a result of “elongated sales cycles together with the delay in new regulatory guidelines passing into law in Asia” revenues in the first half of 2011 would fall to €22 million - down from €24.6 million a year earlier.
The group expects EBITDA to fall from €4.5 million to €1.5 million because of reduced revenues and an increased investment in sales and product development.
“Norkom's long-term prospects continue to remain positive,” the company’s chief executive Paul Kerley said.
“The underlying growth in demand in the market is increasing particularly for our packaged solutions. Buying trends have moved to purchasing packaged solutions that address specific areas of criminal activity while opening the way to put a full enterprise capability in place.”
He added that interest in Norkom sales channels remained robust.
The company’s H1 results will be published on November 9th.
Norkom said it expects a modest return to revenue growth in the second six months of 2011.
