Translation software maker SDL slumps on restructuring costs
Translation software maker SDL reported adjusted profit for 2013 slumped more than three-quarters on lower revenue from technology licensing and higher research and development costs as it transitions to automated translations.
Shares in the FTSE-Small Cap Index company fell as much as 6.2pc in early trade on the London Stock Exchange.
The company said it would not pay a final dividend and expects revenue and profit to pick up in 2014, but warned of a lag before restructuring and investments take full effect.
"We are looking at probably a 30-70 type split in terms of profitability as we move through the first and the second half, Chief Executive Mark Lancaster told Reuters.
The company, which sells rights to its translation software as well as consulting and language services, incurred a one-off cost of £25.1m to restructure its business in 2013.
Post restructuring, SDL reported a loss of £24.4m compared with a profit of £27.4m last year.
The company said profit before tax and amortisation of intangibles and one-off costs dropped to £8.2m for the year ended Dec. 31, from £37m.
Revenue last year fell to £266.1m from £269.3m.
SDL shares were down 5.7pc at 349 pence in morning trade.