Telecom equipment company World Reach (ASX:WRR) expects to have missed its target of turning a profit in FY11.
The company now anticipates reporting an FY11 loss of between $125,000 and $200,000. The previous forecast of a modest profit for the year was on the strength of anticipated 2H earnings.
While World Reach reported a $490,000 loss in 1H11, it had been expecting a profit for 2H11 that exceeded the first-half loss.
But on Wednesday, World Reach advised that an order with a margin of over $150,000 had been delayed until the end of the cut-off date for it to be booked in the FY11 results.
The delay was attributed to late delivery by a third-party supplier.
In a market update, World Reach managing director Michael Capocchi said the company “anticipates the continuation of sales at levels that will result in profits for the current [financial] year.”
This will be assisted by a reduction in the cost of goods sold following the outsourcing of the majority of its various manufacturing activities to China.
World Reach subsidiary Beam Communications on Tuesday got the nod to launch the line of satellite terminals it had developed through its partnership with satellite services provider Inmarsat.
WRR shares stayed flat on Wednesday at $0.003.