Diagnostic screening and testing products developer Akers Biosciences slumped to a 52-week low after warning that 2011 revenues will not come up to scratch.
Largely as a result of issues with an order for Revelar Breath Tubes from Pulse Health, revenues for 2011 will be significantly below expectations, with turnover anticipated to be around $2.2M. The revenue shortfall will have a knock-on effect on profits, and the company thinks it will suffer pro-forma losses of around $1.9M, though these figures may be subject to change.
In the latter part of 2011, Pulse experienced difficulties in the manufacture of their reagent which was to be supplied to Akers. This resulted in severe delays in the company's production schedule, and the quantities delivered to Pulse thus far have been lower than originally planned due to Pulse's reagent formulation problems.
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As a result of these events, Akers reckons that turnover in relation to the Revelar Breath Tubes during 2011 will be around $1.2M lower than previously expected.
In addition, sales of BreathScan, the company's line of disposable breath alcohol detectors, have slowed versus the prior year, partially due to the US government's failure to achieve the passing of its budget, according to Akers. This has lead to a strategic shift in the way Akers will structure its breath alcohol business segment; henceforth, the products will be integrated into comprehensive alcohol awareness programmes focused on government and corporate sectors.
The company did have some moderately good news for shell-shocked shareholders, however, as it said sales of the company's core product, the PIFA Heparin/PF4 Rapid Assay, were up 23% in 2011 on the year before.
The shares tumbled to 1.32p on the profit warning, down from the previous night's close of 2.37p.
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