Industrial software company ISS Group (ASX:ISS) said its unaudited results show a 116% wider pre-tax loss for Q3.
The company has flagged a likely pre-tax loss of $940,000, from 19% lower revenue of $2.7 million.
But in a market update ISS, which provides software to the energy, minerals and manufacturing industries, said it had made progress growing its sales pipeline during the quarter.
The benefits of the new sales opportunities at the Australian, Singapore and UK offices should be reflected in Q4 and FY12, ISS said.
Labour costs were also reduced by 8% year-on-year, although selling, general and administrative costs grew 49% to $1.15 million due to the accrual of employee benefits.
While ISS said the strength of the Australian dollar is a concern, just as it is with most export-focused businesses, its forex position means exchange losses are usually not realised. The company estimated a forex loss of $29,000 in the third quarter.
ISS said it will continue to concentrate on growing sales in each of its regions - which as well as Australia, Asia and Europe also include the Americas through a partnership with oilfield services company Schlumberger.
ISS shares fell 4% in Friday's trading to $0.120.