Baltimore warns again
Article Date: Apr 12 2001E-business security systems developer Baltimore Technologies has seen its share price slip a further 18.2 per cent to 72.25p today, after its second profits warning in less than a month. Elliott Davis reports.
TechMARK-listed Baltimore has disconcerted investors by suggesting that revenues in the first three months of this year are only likely to reach £23.7 million, against the £28.4 million achieved in the last quarter of 2000. Less than a month ago, on 23 March, Baltimore announced that a slowdown in sales had been experienced and that this would result in first-quarter revenues of £25 million.
Up to January, Baltimore had posted seven successive record quarters - culminating in £28.4 million of sales for the last three months of 2000. Chief executive Fran Rooney claims that the revisions have been caused by 'the general slowdown of the global economy', which has forced a host of software and computer services companies - most recently Cedar and Recognition Systems - to issue warnings. Slightly more encouragingly, he adds that sales had been 'deferred' rather than completely cancelled and says that a cost-cutting 'operational review' is now under way.
Reacting to the news, David Johnson of broker Beeson Gregory confirms he is lowering his current full-year revenue forecasts from £143.8 million to £110-£115 million. Despite this, he maintains that Baltimore is a good long-term prospect, claiming that 'the technology is good and the customer base is good'.
Today's fall leaves the shares some 92.75 per cent below a 52-week high of £10, although they still rest above a 61p low.
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