LONDON (Alliance News) - Intercede Group PLC saw its shares drop in early trade on Tuesday after the company said that while it is optimistic of meeting full year expectations, its performance will be dependent on the timing of the receipt of orders.
The company said its smart card-related identity business is strong, but the order book for the unit will be subject to the timing of a relatively small number of big orders and seasonal variations primarily due to the US government fiscal year.
Against these conditions, the company said it expects full year revenues to fall to GBP4 million, from GBP4.6 million a year earlier. It also said its cash balances to the end of September totalled GBP6.3 million, against GBP7.4 million a year earlier.
The cash balance has been depleted by the group's investment in research and development ahead of the launch of its MyID v9 Service Pack 2 and MyID v10.1 in order to meet the US government's FIPS 201-2 standard.
The company said it was optimistic of meeting full year growth expectations, but said this will be heavily dependent on the timing of orders.
Intercede shares were down 7.7% to 157 pence on Tuesday, making it one of the worst performers on the AIM All-Share index.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Intercede (IGP)