Datalex warns of potential 2018 loss of $6m
TROUBLED travel software firm Datalex says it now expects to report 2018 losses of up to $6m (€5.4m), much more than forecast when its accounting issues first came to light.
The Dublin-based company told shareholders yesterday it had raised its January forecast of $1m to $4m in 2018 losses to a new range of $4m to $6m.
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Datalex also announced it had shelved its previous profit outlook for 2019 ($3m-$3.5m) and 2020 ($12m-$13.5m), pending its comprehensive review of company accounts, which was launched in March after external auditors questioned the firm's practice of converting R&D spending into assets in its accounts.
Datalex said it would provide a new 2019-20 outlook to shareholders at its AGM on September 17 - when it "expects to report a significant exceptional cost" - and would publish its fiscal 2018 accounts before that meeting.
Trading in Datalex shares has been suspended since May, and the company has been obliged to offer its Dublin office furniture and equipment as security for emergency private finance.
The troubles stem from how Datalex reported its R&D spending on its work in modernising German airline Lufthansa's online retail platform, which has suffered delays.
Datalex missed an end-of-April regulatory deadline to file 2018 accounts and changed its management at the top, bringing in acting chief executive Sean Corkery and chief financial officer Niall O' Sullivan.
Datalex's products drive online bookings for dozens of airlines and travel companies around the world, including Aer Lingus, Air China, JetBlue Airways, SAS, Swiss Air and Trailfinders.