Vipera says that its third quarter revenues were below expectations as banks delayed capital investment decisions.
Third quarter revenues were £62,000 taking the total for nine months to September 2011 to £432,000, up from £250,000 in the same period of 2010. Daniel Stewart forecasts full year revenues of £750,000, which is 50% of the previous forecast.
Vipera provides mobile financial services and technology, which includes mobile banking and money transfer. The business reversed into an Aim shell last year. Vipera has already established a market presence in the Middle East and it is beginning to pick up business in Europe and Asia but the timing of new orders is uncertain.
Vipera generates its revenues from selling software licences although it does also offer a managed service version. Vipera is also starting to sign contracts where it receives revenues based on transactions or the number of users. There are also annual support and maintenance revenues.
The customer focus is banks and telecoms companies although Vipera has also supplied systems to governments in the Middle East.
There was £827,000 in the bank at the end of June 2011. Daniel Stewart forecasts cash of £413,000 at the end of 2011 – down from its previous estimate of £480,000.The business was expected to be cash generative in 2012 but that is no longer the case. Net cash should be around £200,000 at the end of 2012. .
At 11p a share, down 1p, Vipera is valued at £14.3m.
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