Software company Prophecy International (ASX:PRO) plans to pursue a large partnership and an acquisition to help aid an FY11 turnaround, according to chairman Ed Reynolds.
Speaking at the enterprise software developer's 2010 AGM, Reynolds said Prophecy's reduced performance in FY10 was down to a slowing sales cycle.
Prophecy's FY10 pre-tax profit fell to $652,000 from $1.8 million the year before, on 21% lower revenue of $5 million.
But he said the company believes that the sales cycle has now picked up again, adding that the “current level of activity at this time of the year favours an improved result for FY11.”
Reynolds said Prophecy's share price, which has fallen from $0.66 at the time of last year's AGM to $0.25 as of Friday, “appears to reflect the lower full-year profit, but has yet to price in the improving marketplace that we now find ourselves in.”
He said Prophecy would continue to look for a suitable acquisition target and seek to enter another major international partnership to add to revenue and profit growth during the year.
Prophecy also plans to introduce into the US market financial software developed by Promadis, which Prophecy acquired in January.
PRO shares on Friday slumped 13.8% to a two-month low of $0.250.