Intercede, an identity and credential management software provider, has admitted that it has not received orders in the volumes it had anticipated.
With six weeks to go before the end of the period, the firm's order book of £6.3m stands at a similar position to the prior year, mainly because customers are either moving to rental models that defer revenue recognition into future periods or they are deferring project start dates, or both.
Despite this the firm was keen to emphasise that the financial year ending March 31st 2012 will be profitable and cash generating.
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The company's ability to book further orders before that date is dependent on a small number of projects in the pipeline receiving customer approval in sufficient time for deliveries to be made and revenue recognised.
Richard Parris, Intercede Chairman & Chief Executive, said: "Whilst it is disappointing that short term revenues do not reflect the significant strategic and commercial progress made by Intercede, we nevertheless believe the business is in a better position to generate long term shareholder value. We are continuing to work to address any revenue gap in the current year, but we are dependent on the buying behaviour of large government and corporate customers.
"In the period we have invested according to plan to reinforce our positioning with major partners such as Microsoft, extended our product reach into the smart phone market and are poised to participate in a number of high volume managed service projects."
As at 10 February 2012 cash balances totalled £7.0m up from £6.6m reported on September 30th 2011.
The share price fell 14.11% to 70.00p by 12:30.
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