Defenx shares (LON:DFX) tumbled on Wednesday, after the company issued a profit warning for the year.
The cyber-security software provider announced that it was unlikely that anticipated sales orders from a small number of high value contracts were unlikely to be realised in 2017.
In addition, the company said that despite continuing development of its core security, backup and protection products, the delivery of updates which tackle address recent performance issues and back-end integration is falling behind schedule.
Moreover, efforts to diversify the group’s product portfolio, particularly within respect to the corporate sector, is also taking longer than expected.
As a consequence, the group noted that converting business interest into orders proved more challenging for the year.
As a result of these various challenges, Defenx warned that financial results for the year to 31 December 2017 are expected to be “materially below market forecasts”.
Overall, the Board currently anticipates to report a loss for the full year. The board maintained however, that they remain confident that cash and available facilities in the region of €2.2 million are currently sufficient.
The company noted that intends to start the strategic partnership with BV-Tech SpA “as soon as possible”. Defenx signed a master services agreement with BV-Tech SpA to bring the company on board as a technology partner and support development activities.
Defenx also added that the company are formally recruiting both a chief operating officer and a chief technology officer to head its teams and launch a turnaround, to continue to remain a competitive force in the market.
Defenx was founded back in 2009, and is listed on the AIM market, on the London Stock Exchange.
The company offers cyber-solutions and software for smartphones, laptops and desktop computers.
Since its founding, Defenx says it has sold over 3.1 million licences, predominately in Europe, the Middle East and Africa.
Shares in Defenx are currently down as much as 37.49 percent as of 11.21am (GMT), as the market reacted to the profit warning.
Elsewhere in the markets, shares in copper miner Antofagasta (LON:ANTO) also took a hit, after relatively disappointing growth in production levels for the third quarter.