Struggling Datalex faces €2m loss
Friday November 20 2009
IRISH travel software firm Datalex expects losses to jump to $3m (€2m) this year as its operating environment continues to deteriorate.
In an interim management statement yesterday, the Dublin-based company said that its third quarter revenue was down 19pc year-on-year at $5.4m.
Datalex said that the difficult conditions in the travel industry in the first half of 2009 show no signs of abating. It added that airlines are continuing to cut costs and defer capital investment until evidence emerges of an improvement.
The company said its third-quarter revenue decline was driven by reductions in spending on professional services, which impacted its activities.
"These operational spending constraints, and the lengthening of the new business cycle, are both direct consequences of the current travel industry dynamics and the broader economic environment," it said.
Shares tanked over 8pc yesterday to close down 2 cent at 17 cent, valuing the company at just over €12m. Investors were concerned at the outlook, which is significantly worse than analysts and the company itself had envisaged.
Goodbody Stockbrokers analyst Gerry Hennigan said yesterday's statement was a "disappointment".
- John Mulligan
Irish Independent
