Intercede Group warns of operating loss following delays in US orders

Cyber security company Intercede Group said delays in US orders could result in an operating loss for the year. Shares fell 16.78% to 62.00p as the group said uncertainty surrounding the US budget impacted sales to government departments and defence contractors. "While Intercede had previously expected this uncertainty to be resolved in December 2012, President Obama's compromise agreement with Congress on the 'fiscal cliff' has delayed any decision on spending cuts until at least the end of February 2013," the company said in a statement.The fiscal issues have caused the deferral of new orders in the company's next financial period. Intercede, which also supplies to businesses in the UK and Europe, relies heavily on the US market for revenues so it could prove to have a material adverse impact on results."Given the extent of our planned investment in organic growth, this would result in an operating loss for the year," Intercede stated.Cash balances were expected to remain above £6.0m. RD