WanDisco share price plummets despite narrowing losses and reducing costs
Shares in the big data software company WanDisco have taken a dive on the (AIM) dancefloor despite narrowing its losses and reducing costs.
Chief David Richards' confidence failed to reassure investors and shares slipped more than 20 per cent.
Sales fell 48 per cent for the year to the end of December, but deferred revenue from multi-year contracts resulted in revenue slipping less severely, down one per cent to $11m.
That brought pre-tax losses to $31m, narrowing from $39.4m a year earlier.
"We reduced costs progressively through the year. Whilst the timing of contract wins remains variable, I am confident that WanDisco enters 2016 on a strengthened operational footing and is moving significantly closer to cash flow break-even," said Richards.
"With a compelling product for big data in the cloud, increasing engagement of partners and a well-established ALM product, we expect to build momentum through the rest of this year."
Costs increased to fund ambitious expansion plans for the San Francisco and Sheffield-based firm in recent years, while losses mounted.
FinnCap analysts cited "progress in reduction in cash costs, reducing cash burn into 2016" despite revenue behind expectation.
"News that the cash cost base is reduced further as at the end of March shows cost discipline. For full-year 2016, our EBITDA loss and net debt are upgraded i.e. improved on unchanged revenues," said Investec analysts.
WanDisco stock peaked at 1,520 pence per share in December 2013. Shares today fell to 110 pence per share at pixel time.
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