Escher Group sees no additional licence sales in 2H
The global provider of outsourced, point of service software, Escher Group, has announced on Tuesday that it will not close additional licence sales as expected in the second half of 2017, due to the postponement of major contracts.
Escher Group Holdings
189.50p
16:55 24/05/18
Software & Computer Services
2,412.52
17:09 24/04/24
As a result, the group predicted revenues would be approximately $18m for the year to 31 December 2017 with those from licenses "materially lower" than had been envisaged.
Meanwhile, adjusted EBITDA was expected to be roughly $2.7m for the year to 31 December 2017, alongside a neutral net debt/cash position, as Escher continued to juggle its fixed-cost base to remain profitable even without major one-off licence sales.
The company also said that the 2017 restructuring costs incurred would be similar to those in 2016 at $0.3m.
Liam Church, Escher's chief executive said:"We are disappointed with the postponement of licence sales, which we had anticipated falling in 2017. The volatility in revenues and earnings caused by the timing of these licence sales remains a characteristic of our core Postal activity."