UPDATE 1-EServGlobal cuts FY revenue view, ends offer talks
* Reduces FY rev forecast by A$10 mln to A$165-170 mln
* Says volatility in customer project schedules
* Says cash reserves strong, has no debt
* London-listed shares falls 16 pct (Adds details)
March 20 (Reuters) - Australian software firm eServGlobal Ltd (ESGq.L) (ESV.AX) cut its revenue forecast for the year to June citing order delays and volatility in customer project schedules, and said that it ended talks with external parties interested in acquiring the company.
Pursuing a transaction at this time would not maximise value for shareholders and it has therefore discontinued talks with external parties, eServGlobal said.
"Market conditions have continued to be challenging in the second half of our financial year, however, capital expenditure by operators is being delayed, not cancelled and we are confident of the commencement of a recovery during calendar 2009," Executive Chairman Ian Buddery said in a statement.
The company now expects full-year revenue of A$165 million ($113.8 million) to A$170 million, about A$10 million below its earlier forecast.
This is compared with revenue of A$177.9 million it posted in 2008 and A$153 million in 2007.
The company said it had strong cash reserves and strong organic growth opportunities with no debt.
EServGlobal said it continued to benefit from subscriber growth in emerging markets, and that it was confident of its prospects in the coming years.
Telecommunication companies use eServGlobal's software to charge for phone calls, messages and other services instantly, and manage advance payments.
EServGlobal shares were down 3.25 pence at 17 pence on the London Stock Exchange at 0818 GMT. ($1=1.450 Australian Dollar) (Reporting by Balachander Surianarayanan in Bangalore; Editing by Gopakumar Warrier)
