SDL warns on profit after delays in orders hit licence sales
LONDON Oct 15 (Reuters) - Translation software firm SDL lowered its full year profit outlook on Tuesday, citing weaker-than-expected third-quarter performance across its language services and technology divisions.
The firm, which sells rights to its translation software as well as consulting and language services, now expects pre-tax profits for 2013 to be in the range of 8 million pounds ($12.81 million).
Analysts were expecting full year pre-tax profits of 13 to 15.95 million pounds, a Thomson Reuters survey of six analysts showed. SDL made 35.5 million pounds in pretax profits in 2012.
At 0717 GMT, shares in SDL were down 21 percent to 221.56 pence, valuing the company at 227.1 million pounds.
"The expected outcome for the financial year is significantly below what we had hoped and is therefore disappointing," said chief executive Mark Lancaster in a statement.
"We remain focused on the operational changes required to deliver momentum in the business and to achieve a fully integrated product offering," he added.
SDL said its language services unit had experienced delays in orders from existing clients and that bookings in its technology division - whose services include social media monitoring - were weaker than expected.
The company also announced the appointment of Dominic Lavelle as its new chief financial officer, who will take up his new position on Nov. 25.
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