The Integrated Research Limited (ASX: IRI) share price has come under pressure today following the release of an update.
At the time of writing, the performance management solutions provider's shares are down 9% to $2.75.
What did Integrated Research announce?
Investors have been selling the company's shares this morning after it provided an update on its guidance for the first half of FY 2021.
Just 12 days ago, Integrated Research revealed that it was expecting revenue for the first half to be in the range of $41 million to $47 million. This would be down 11.6% to 23% on the prior corresponding period.
An even greater decline was expected on the bottom line, with profit for the first half expected in the range of $5 million to $8 million. This represents a 32.2% to 57.6% decline on the prior corresponding period's profit of $11.8 million.
At the time, management warned that the range of estimates for revenue and profit remain wide due to the unpredictability of business closures in the remaining weeks of December.
Well, unfortunately for shareholders, it seems that these guidance ranges were not wide enough.
This morning, less than two weeks after giving this guidance, Integrated Research has announced that it expects to fall short of it.
According to the release, its trading performance since 18 December has been below expectations with a continuation of customers deferring purchasing decisions.
As a result, the company now expects revenue for the first half to be in the range of $34 million to $37 million and profit for the first half to be in the range of breakeven to $2 million.
On the top line, this will mean a decline of 30.5% to 36% compared to the first half of FY 2020. And on the bottom line, this will be an 83% to 100% decline on the prior corresponding period.
