Intercede cautions on contract timing issues

AIM software company Intercede warned that first half revenues were lower than last year's but reported strong momentum for its MyID mobile digital identity technology.Revenues in the first half will be around £4m, down from £4.6m last time, with the timing of certain larger deals on the order book at the smart card business also cited as a potential hazard.Intercede said the smart card related identity business remained strong but revenues would be subject to the timing of receipt of "a relatively small number of large orders and seasonal variations mainly due to the US government fiscal year".Broker FinnCap noted that the previous first-half was boosted by one-off revenue for a large contract win, with further substantial revenue from that same contract now expected to fall in the second half of the current year, with the US fiscal new year commencing on 1 October.Management said they therefore remained optimistic of hitting full year growth expectations, "subject to the timing of receipt of orders, both from smart card related projects and from a number of mobile related opportunities".Cash balances at the end of September stood at £6.3m, down from £7.4m, as the company invested heavily in research and development to meet the US government's new information sharing standards. Intercede