LONDON (Alliance News) - Electrical Geodesics Inc. Monday warned that it anticipates full-year results to be below expectations, as its strong performance in Asia only partially offset continued difficulties caused by government-austerity measures in the US and Europe.
Although interest in its products remained strong, the company said grant funding awards took longer than in recent years as the US governmental shutdown further delayed decisions.
Electrical Geodesics said it now expects to see sales for the year ending December 31 in the range of USD11.5 million to USD12.0 million, subject to uncertainty around the timing of orders.
However, the company said that it was still confident it would deliver double-digit sales growth in 2014.
Electrical Geodesics produces technology to monitor and interpret brain activity. The company launched its initial public offering on the AIM market in April. Since then it has continued to attract customers in epilepsy centres in China and Europe, Electrical Geodesics said.
The launch of its GES 400 series of products in Europe and other markets have been positively received, Electrical Geodesics said, however it is still awaiting marketing clearance in the US for the products. The company said the review was taking longer than anticipated due to the Food and Drug Administration's implementation of a revised clearance process.
"The market for products for measuring, monitoring and modulating the electrical activity of the brain is becoming increasingly active, while major governmental initiatives in Europe and the US are expected to impact positively the research funding climate in 2014 and potentially beyond," said Chief Executive Officer Don Tucker in a statement.
Electrical Geodesics will release its results for the full year ending December 31 on February 26, 2014. Its shares were trading down 1.3% at 134.75 pence Monday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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