Wednesday 28th March 2012
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Finzsoft Solutions, the financial software company, said it expects to report a net loss between $400,000 and $550,000 for the year ending on Saturday as a result of a US customer defaulting and a failed sales pitch.
The projected loss compares with the $545,000 profit it reported for the year ended March 31, 2011. It comes despite the $421,000 net profit Finzsoft reported for its latest first half.
Finzsoft said after the US company failed to pay, it withdrew its services. The sales pitch had involved a long sales process and considerable investment and it withdrew “based on concerns over the project's risk profile.”
“Despite this short-term impact on profitability, Finzsoft is well-positioned for future growth,” the company said. Over the last three years and more significantly in the latest year, Finzsoft has increased its investment in developing “a world-class, tier one, full lifecycle banking and finance software,” establishing “a leading tier one global channel partnership,” while developing Australasian and Asian sales teams and operations.
Finzsoft shares traded at 40 cents on Friday, valuing the company at $3.32 million, their highest level since mid-2009.
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