SDL says first quarter performance behind expectations

SDL, which provides language localisation and translation software, said its performance for the first quarter was behind management's expectations.

Results for the first three months of the year fell short of the company's guidance reflecting flat revenues in its technology segment and less than hoped bookings in Campaign Management, Analytics and Social Intelligence.

Campaign Management, Analytics and Social Intelligence profits were affected by the costs of marketing and sales investments.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Nevertheless, the group won contracts with Info.com, Elekta, Tokyo Electron and GTA, part of Kuoni Global Travel Services.

The group also exceeded its expectations in licence bookings for its Content Management Technologies and Machine Translation division.

Language Services revenue in the first quarter of 2013 was marginally ahead of the first quarter last year, as the firm secured new contracts with Edwards Lifesciences, Rolls Royce and Premier Farnell.

However, profit was down on the previous year due to pricing pressures and investment in the transition to automated translation. The division was therefore performing slightly behind forecasts.

"We remain confident in the need for customer experience management technology in the market place and believe our suite of products and services addresses the challenges of engagement in the new digital world," said Chairman, Mark Lancaster.

"We are making very good progress with our investment in sales and marketing, the returns from which we expect to start seeing in the form of bookings in the second half of the financial year."

Shares fell 3.40% to 372p at 08:06 Thursday.

RD