NetDimensions falls into losses

Shares in NetDimensions, which makes software for companies to train their staff, fell sharply after it fell into losses in the year to June 30 and said profits would be hit by the settlement of a patent infringement case.Revenues increased to $3.38m from $3.05m the previous year, but the company posted a loss of $260,000 compared with a profit of $410,000 the previous year. The fall into losses came as the company expanded, increasing its headcount from 50 to 73. NetDimensions has set up an office in Guildford to help strengthen its business in Europe, the Middle East and Africa.'NetDimensions has decided it is time to invest in geographic expansion and broadening the product and services portfolio, both organically and strategically, to leap frog our growth for 2011,' chairman Roger Durn said.The company is also keen to expand its presence in the US. It currently has a small office there and hopes to build this up so it can compete with companies employing about 30 to 40 staff. Durn said that settling the patent infringement process was 'in the best interest of the company and its shareholders.'The cost of the settlement has not been disclosed, but analyst group Arden has lowered its 2010 pre-tax profit estimate for the company to $400,000 from $840,000 as a result of the payment.