Defenx, the cyber-security software group, has warned that results for the year to the end of December would be materially below market forecasts and the board currently expected to report a full-year loss.
The group said that as previously explained, its full year revenue outcome was particularly dependent on when a small number of high value contracts start and the treatment of the resultant billings under its revenue recognition policy.
An update said: 'Since the release of the interim results, it has become clear that previously anticipated sales orders are unlikely to be recognised in 2017, with a corresponding adverse impact on the Group's financial performance for the year to 31 December 2017.
'While the Group continues the development of its core security, backup and protection products, the delivery of product updates to address certain recently-identified performance issues and back-end integration is taking longer than expected.
'Further, the broadening of the Company's product portfolio, notably to address the corporate sector, is behind schedule.
' Accordingly, the conversion of opportunities into firm orders is taking longer and requiring more investment than was initially anticipated.'
The group said it was planning to start the strategic partnership with BV-Tech SpA as soon as possible.
It added: 'The master services agreement with BV-Tech has only recently been signed, which allows BV-Tech to be a technology partner and support us in our development activities.
'BV-Tech may become, in the future, an important channel to corporate customers to whom expanded product portfolio can be sold.'