SDL warns profit to fall short of market expectations
Nov 26 (Reuters) - SDL Plc said its full-year profit could fall short of market expectations by as much as 4 million pounds ($6.4 million), partly due to the translation software company reassessing the cost to complete certain service contracts.
SDL said poor sales and marketing execution, coupled with the broader uncertainty in the macro-economic environment, would also hurt profit.
The company, which provides translation services for multinationals such as Hewlett-Packard Co and Informatica Corp, now expects profit before tax and amortization of about 36 million to 37 million pounds on revenue of 270 million to 272 million pounds for the year ending Dec. 31.
According to Thomson Reuters I/B/E/S, analysts expect a pretax profit of 39.7 million pounds on revenue of 271.1 million pounds.
The profit warning comes following a review of the business by interim Chief Executive Mark Lancaster who took over earlier this month after former CEO John Hunter's departure.
Shares in the company were down 9 percent at 465.36 pence at 0807 GMT on the London Stock Exchange. They have lost 23 percent of their value so far this year as of Friday's close.
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