(Sharecast News) - Rosslyn Data Technologies warned on its revenue on Monday, even as it reported that since it announced its interim results on 25 January, it had seen a sustained expansion in its total pipeline, surpassing the figures recorded at the same time last year.
The AIM-traded firm said discussions with significant prospective partners had advanced, although the company said the opportunities needed extended negotiation timeframes.
As a result, the expected timelines for finalising contracts had been prolonged, impacting revenue recognition for the current year ending 30 April.
As a result of the extended negotiations, Rosslyn now projected revenue for the 2024 financial year to be in the range of £2.8m to £3m.
The adjusted EBITDA loss was estimated to be between £2.6m and £2.8m.
As of 29 February, the company's cash and cash equivalents stood at £0.8m.
The board said it was monitoring cash reserves to ensure sufficient resources for executing its growth strategy.
Rosslyn said it expected a reduction in cash burn and customer acquisition costs as it converted its pipeline in the coming weeks.
The company said it was actively seeking to enhance contract payment terms, including upfront payments, to fortify its financial position.
"The board is encouraged by the strengthening of the customer and partner engagement that the company is experiencing and is confident of securing further sizable contracts in the near-term," the Rosslyn board said in its statement.
"It also looks forward to the launch of Rosslyn's next-generation generative AI module, which has received excellent feedback from customers during the trial phase and which offers a transformational opportunity.
"Accordingly, whilst the immediate period is not without challenges, the board remains confident in the company's prospects."
At 1331 GMT, shares in Rosslyn Data Technologies were down 20.65% at 12.9p.
Reporting by Josh White for Sharecast.com.
Rosslyn Data (RDT)