Be careful guys3 Dec 2010 10:21
Company's trading update for Q3 reads relatively well, except for handset sales which were 16% lower. Full presentation is here. Cash levels seems quite decent at £14m. T/O increased to £170m+ and profit margins look really strong. So what's driving it down? If product margins are good, how bad are the other operating expenses? Is there a high cash burn?
Date: Friday 03 Dec 2010
LONDON (ShareCast) - E-learning group Promethean World is teaching its investors some harsh lessons about new issues with a second profit warning since its listing in March.
Promethean World says order deferrals mean fourth quarter revenues will be lower than in the same period last year and full year results will be below market expectations.
"The current slow down is primarily the consequence of a deferral of customer spending, rather than any alteration in customers' long-term intention to adopt interactive learning technology," the statement added.
Promethean World flagged the problems in October when chief executive Jean-Yves Charlier cautioned, “It would not be surprising if such uncertainty continued in some regions, particularly in the United States, in the near-term.”
Promethean World floated at 200p, but yesterday the shares were trading at below 78p.