Industrial software developer ISS Group (ASX:ISS) has revealed its 1Q losses widened 870% year-on-year to $1.5 million.
The company blamed continued slow sales for the quarter, coupled with foreign exchange impairments of $617,000, for the larger loss.
Revenue fell 37% to $2.8 million, while expenses increased 12% to top $1 million.
But managing director Shane Attwell said the company traditionally has a weak first quarter, and that its sales pipeline is developing across all regions.
“The Europe and Americas branches have identified a number of new opportunities in what has been a very slow market [while] the Australian market is showing signs of a recovery,” he said.
The company is debt free and has net working capital of around $7.2 million, he added, implying that the company can withstand a rough quarter.
ISS swung to a full-year profit of $731,000 in FY10, but warned of a continued subdued demand for its services.
ISS shares slumped 13.33% during the day's trading to close at $0.130.
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