Technology development and investment company Techniche (ASX:TZL) has cut its profit guidance for FY11 as a result of foreign exchange (forex) losses and a write-down.
The company is now expecting to report net profit of between $700,000 and $800,000 for the year ending in 30 June 2011.
In March, the company had forecast profit for the year of at least $900,000 and up to $1.1 million.
In a market update, Techniche said its trading profit had been hit by the strong Australian dollar, and the board's decision to write down its investment in online video platform company TVPC International.
Techniche acquired the remaining 50% of TVPC International it did not own for $45,000 earlier this year.
Despite the lowered guidance, Techniche said it was confident that its long term strategy is on track, and that it intends to pay a “modest” dividend from cash reserves.
The company recently appointed Donna Salvatore as its new CEO and president of IT services and web app development company Urgent Technology, and on Thursday revealed her base salary will be US$210,000 ($197,090).
TCN shares stayed flat on Thursday at $0.037.