Interactive whiteboard manufacturer Promethean has posted a profit warning to the London Stock Exchange, saying that demand has remained lower than expected in a challenging market.
In the interim management update for the nine months ending 30 September, the Lancashire firm's chief executive Jim Marshall and chief financial officer Neil Johnson said revenue for the year to date was 30 per cent down on 2011, just tipping £123.2m.
"[And] third-quarter group revenue was £40.0m, down 41.2 per cent versus the third quarter in 2011 – or down 40.9 per cent on a constant currency basis," they wrote.
According to the announcement, the quarter and year-to-date revenue for both the north American and international sales regions have been down against the prior-year periods.
Demand during its "key" US buying season was down, albeit exacerbated by one large order which had been delayed until Q4, it said.
"Third-quarter interactive display revenue was £36.6m and learner response system sales were £3.4m, down 39.5 per cent and 55.3 per cent respectively versus the third quarter in 2011," it added.
However, the vendor's cost reduction programme was proceeding well. "Consequently, operating costs for 2012 will be lower than previously expected, with the full benefits being realised in 2013," the announcement said.
"We are now targeting the level of cost reduction in 2013 to be at the higher end of the 20 to 25 per cent range, versus 2011 levels."
Promethean expects next year to remain difficult. As a result, it is aiming to remain "cash positive" while protecting core investments in R&D, it said.
CRN pulls out the key information from Microsoft's Q4, which took the vendor above $100bn for the year
Investment will include an AI research centre in London
John Coulston outlines Rackspace's plans to partner with the channel in the UK
Chris Bunch of Microsoft partner Cloudreach gives his take on this year's Inspire conference