Defenx plc Trading Update (5210U)
25 October 2017 - 5:00PM
UK Regulatory
TIDMDFX
RNS Number : 5210U
Defenx plc
25 October 2017
25 October 2017
Defenx PLC
("Defenx" or the "Company" or, together with its subsidiaries,
the "Group")
Trading Update
Defenx PLC (AIM:DFX), the cyber-security software group,
announces an update on current trading.
As explained in the Company's trading update on 22 June 2017 and
in the interim results announced on 27 September 2017, the Group's
full year revenue outcome is particularly dependent on when a small
number of high value contracts start and the treatment of the
resultant billings under the Group's revenue recognition
policy.
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 is planning to start the strategic partnership with
BV-Tech SpA ("BV-Tech") as soon as possible. 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.
These factors combined are expected to result in the financial
results for the year to 31 December 2017 being materially below
market forecasts and the Board currently expects to report a loss
for the full year. The Board is satisfied that Group's cash and
available facilities in the region of EUR2.2 million are sufficient
for its current requirements.
A formal process is now underway to strengthen the executive
management team including the recruitment of both a Group COO and a
Group CTO to lead the operational and development teams. This is
intended to accelerate the internalisation of the Group's
development activities, ensure its products remain competitive in
fast-moving markets, and to enhance the Group's sales capacity.
The Company continues to believe that seeking to address the
corporate market in addition to its existing consumer-focused
channel partner model is the right strategy to ensure that
profitable revenue growth is delivered in the medium and
long-term.
Enquiries
Defenx PLC
Andrea Stecconi - Chief Executive Officer
Philipp Prince - Chief Financial Officer 020 3769 0687
IFC Advisory (Financial PR and IR)
Tim Metcalfe / Graham Herring / Heather
Armstrong 020 3053 8671
Strand Hanson Limited (Nominated and
Financial Adviser)
Richard Tulloch / Ritchie Balmer /
James Bellman 020 7409 3494
WH Ireland (Joint-Broker)
Adrian Hadden / Alex Bond 020 7220 1666
Beaufort Securities (Joint-Broker)
Jon Belliss 020 7382 8300
About Defenx
Founded in 2009, Defenx is a fast-growing and profitable
cyber-security software group that offers a range of Security,
Backup and Protection solutions for smartphones, PCs and
networks.
A channel sales strategy, focused on flexibility,
white-labelling and profit-share arrangements with distributors,
telecoms companies and hardware manufacturers, enables Defenx to
compete with established industry incumbents. Defenx's global
distribution partners currently include 3Italia, Türk Telecom and
Western Digital, amongst others including telecoms operators,
systems integrators and original equipment manufacturers.
Defenx was admitted to trading on AIM on 3 December 2015,
acquired Memopal Srl in August 2016 and announced a strategic
partnership with BV-Tech, an Italian IT solutions provider, in
April 2017. These have allowed the Company to diversify its product
portfolio and grow its customer base by adding proprietary cloud
backup and encryption technology as well as new channel
partners.
Web: investors.defenx.com
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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