Management said a number of factors will contribute to the news the Group is likely to report a loss this year.
Companies: Defenx
Antivirus and cloud services company Defenx (LON: DFX) has seen its share price dive today with the news the Group is dealing with a number of issues which are impacting its figures.
Management said in its trading update today that a number of previously anticipated sales orders "are unlikely to be recognised in 2017" which are set to impact this year's results.
Also impacting its performance is the news its integration of several product updates aimed at improving the performance of its security and backup services is taking longer than expected. The "broadening of its portfolio" is also behind schedule, leading to the announcement that:
"The conversion of opportunities into firm orders is taking longer and requiring more investment than was initially anticipated."
Management went on to say:
"These factors combined are expected to result in the financial results for the year to 31 December 2017 being materially below market forecasts and the Board currently expects to report a loss for the full year."
The stock fell over 37% on Wednesday morning as a result, with the share price reaching an all-time low of 60p.
Defenx is now looking for a COO and CTO to "strengthen the executive management team".
The Group currently trades at an earnings multiple of 10x which is forecast to fall 60% over the next 12 months to 4x. Since its IPO in December 2015 the share price has risen and fallen a number of times, reaching a high of 214p in June this year, over 250% higher than today's price.