Financial software and services company CCK Financial Solutions (ASX:CCK) blamed slumping revenue and poor market conditions for a large increase in the company's FY11 net loss to $2.6 million.
The company, which had reported a $350,000 net loss in FY10, said due to difficult conditions in its key Asian market it recorded no new client implementation revenue for the year. As a result, revenue fell 51% to $2.1 million.
Unfavorable exchange rates also contributed to the increased loss and the lower revenue.
But in its financial report, CCK said it is currently in the final stages of contract negotiations with some new Asian clients.
The company is also working with partners to secure new customers for treasury solution Guava, and is moving to expand into the small cap banking sector in Asia.
But CCK warned that “despite a strong pipeline of interest and developing negotiations, uncertainty in global economic conditions remains a risk” to its performance in FY12.
Loss per share for FY11 grew to 3.7 cents from 0.7 cents. The company did not declare any dividend for the year.
CCK shares closed unchanged on Wednesday at $0.024.
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