Datalex lowers forecast after “negatively impacted” performance in China

Datalex has lowered its profit and revenue guidance as its performance in the Chinese market continued to be impacted by the country’s zero-Covid policy.

The company also reported that some digital retail projects have been postponed to next year, impacting its 2022 revenue.

The Irish travel software company had previously expected a stronger recovery in China in the second half of the year.

In an update, Datalex said, “This recovery has not materialized due to ongoing lockdowns in key cities where Chinese customers operate.”

“As a result, our sales and profits from China will be negatively impacted in the second half of 2022.”

As a result of postponed projects, service activity for the second half of 2022 is lower than expected.

“This will negatively impact revenue in 2022 but positively contribute to growth in 2023,” the company reported.

The Irish software developer now expects sales of between $22.5m (€21.6m) and $23.5m (€22.5m) for 2022. Profit is also expected to continue at a loss of $5 million (€4.8 million) to $6 million (€5.76) decrease m) in the company’s annual results.

It had previously reported that it expects full-year revenue of $25 million (EUR 24 million) to $27 million (EUR 25.9 million), with Adjusted EBITDA expected to come in at a loss of between $3 million and $3 million. USD (EUR 2.9 million) and USD 4.5 million (EUR 4.32 million).

In September, the Dublin-based company also reported a 17 percent fall in total revenue for the first half of the year, largely due to difficulties posed by ongoing pandemic restrictions in China.

Chief Executive Sean Corkery said the company now expects to report “significant revenue growth in 2023 and beyond.”

“Airlines are focused on accelerating their digital offering and Datalex is very well positioned to support them,” he said.

https://www.independent.ie/business/irish/datalex-lowers-guidance-after-negatively-impacted-performance-in-china-42169412.html Datalex lowers forecast after “negatively impacted” performance in China

Fry Electronics Team

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