LONDON (Alliance News) - Immunodiagnostic System Holdings PLC on Thursday lowered its expectations for annual revenue following an "unexpected" reduction in royalty revenue in the final quarter of its financial year.
The diagnostics company said its largest customer from which it attains royalties recently notified IDS that it has commenced the transition of its business from the assay on which IDS receives royalty income to a new proprietary assay.
In addition, the customer, which IDS said is a major global healthcare group, also informed IDS that the royalties payable for the quarter ended March 31 would be lower than it had originally indicated.
As a result, while total royalty revenue for the year will be in line with the prior year's GBP4.8 million, the unexpected reduction in the final quarter will mean overall revenue will be closer to GBP38 million rather than the previous estimate of GBP39 million.
"Additionally IDS now expects this royalty revenue stream to reduce significantly going forwards," the company said in a statement.
IDS added it will release its results for the financial year ended March 31 on June 22.
Shares in IDS were trading down 9.4% at 135.00 pence on Thursday morning following the announcement.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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