TZ Limited warns on earnings

TZ Limited warns on earnings

Security technology developer TZ Limited (ASX:TZL) has warned that development delays and weakened demand will harm its operating subsidiary's earnings, keeping it cashflow negative until mid-FY11.

TZ had previously estimated that Telezygology would be cashflow positive by January 2011, and CFO World had previously reported in June that TZ Limited was anticipating a sales boom.

But due to slower than expected sales of its TZ Praetorian System stemming from the economic crisis, as well as engineering delays while developing the core gateway product of its TZ Centurion System, this forecast has had to be revised.

The unit had suffered from “a lack of funding, lack of organizational resources and lack of strategic direction” - shortfalls a recent restructuring had been enacted to address, TZ said.

But Telezygology's three business subunits, Infrastructure Protection, Packaged Asset Delivery and Aerospace Asset Maintanability, are all performing to expectations, with positive revenue forecasts.

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Tags securityTZ LimitedGuidanceASX:TZL

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