Stratatel cuts ebitda expectations for FY11

ICT software and services provider Stratatel (ASX:STE) expects delays winning projects to impact FY11 ebitda, and plans to cool off on its aggressive acquisition strategy for now

ICT services provider, Stratatel (ASX:STE), has lowered its ebitda expectations for the year due to project delays, but has a positive outlook for the next.

In an update to shareholders, managing director Mike Fairclough said ebitda will be below forecasts due to “a number of large deals that were expected to close in [FY11 that are] now being deferred to the new financial year.”

It is also currently unknown when the prospective customers will make the final decisions on these contracts, Fairclough said.

But he added that Statatel's “outlook for enhanced profitability beyond 30 June remains positive.”

Stratatel will cool down on what Fairclough said had been an “aggressive acquisition strategy” while it evaluates the long term value of pursuing it, he said.

Stratatel generated $7.8 million in revenue in the six months ending in December, up 29 per cent from 1H11.

This compares to a half during which revenue grew 43 per cent from 1H09, but profit slumped 77 per cent on investment expenses.

Stratatel provides telecom and printing expense management solutions. The company is also an IBM partner for business management software and services.

The software and services unit achieved 88 per cent of its previous full-year revenue in the first half of 2011, and contributed to 49 per cent of Stratatel's total revenue, the update states.

STE shares stayed flat on Monday at $0.039.

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