It’s only been a week (and a bit) since marketing software vendor, Alterian, released its last revenue and profits warning (see Alterian disappears in Q4; CEO resigns). So, it’s worrying today to see a further profits warning from the company. Following the departure of long-time CEO David Elderidge, Alterian has conducted an initial review of its closing financial position and appears to have found enough discrepancy between the 4th April guidance and its new outturn predictions to trigger another announcement to the market.
On 4th April, we were told that revenue for the year to 31st March would be approximately 10% below market expectations and that c95% of the revenue shortfall would come straight off the profit. There’s no detailed guidance today, just an admittance that revenues will be lower than previous market expectations and routine operating costs will be higher. We can expect more detail in a fuller statement on 18th April. In early trading the company’s share price has fallen by a whopping 30% to 115p – its lowest point for two years. There appears to be considerable concern from investors about what the review has uncovered.
