CIO

Razor Risk expects FY11 earnings slump

Financial software company Razor Risk Technologies (ASX:RZR) is projecting a steep decline in FY11 pre-tax profit to between $250,000 and $300,000.

The anticipated result compares to a pre-tax profit of $1.2 million in FY10.

Revenue for FY11 is expected to be around $10 million, below the $14.1 million from the year before.

In a market update, Razor Risk said trading conditions for the second half of the year had been broadly in line with the first half, with challenging economic conditions persisting in the company's major markets in North America and Europe.

But the company said it had recently signed new business for it flagship enterprise risk management software, Razor, and is in ongoing negotiations with a number of possible clients.

Razor Risk added that it recently negotiated revised perpetual licensing terms and a technology consulting deal with a current customer.

After tax, Razor Risk reported an FY10 profit of nearly $1.6 million. The FY11 audited results will be released in the second half of August.

RZR shares stayed flat in Friday's trading at $0.012.