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DataDot expects 20-30% revenue slump for FY11
- — 02 May, 2011 10:58
DataDot Technology (ASX:DDT) has forecast a 20 per cent to 30 per cent decline in revenue for FY11, due to supply chain disruptions from the Japanese earthquake and tsunami.
In a market update the company, which develops microdot identification technology, said the disaster had seriously disrupted Japanese and other motor vehicle makers' production.
This is affecting sales of DataDotDNA microdots, as the automotive industry is a key market for the product line.
Sales are also being hit by a softness in automotive sales in Europe over the financial year so far, as well as the appreciation of the Australian dollar.
The expected revenue shortfall will impact earnings, DataDot said without going into details. But the company added that it expects the impact of the Japanese disaster on revenue to be short term.
On the plus side, DataDot said it had kept costs in line with the prior year despite taking on all of the expenses of DataTrace DNA - a former joint venture with the CSIRO that DataDot bought out in October – and new subsidiary AgTechnix.
AgTechnix is a joint venture with Ipeco set up to market polymer seed coating and enhancement products.
On a like-for-like basis expenses declined 10 per cent, DataDot said. The company had cash reserves of over $4 million as of the end of March.
DDT shares fell 6.98 per cent in Friday's trading to $0.040.