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Defenx breached as it mulls funding options, new cloud strategy
Defenx shares plummeted to a new all-time low on Wednesday morning after the cyber-security and cloud storage group confirmed it was exploring funding options after making "significant" losses last year and said it would focus more on corporate cloud storage market.
The smartphone and computer protection specialist was hit by the cancelation of some confirmed orders in the second half of the year but reported a "modest full year-on-year increase" in revenues to 0.52m for Cloud Backup products.
The company, which warned of the losses in October and January cannot yet report revenues for FY 2017 due to outstanding audit work but said it will report a "significant" loss, including one off charges, for the year.
Alessandro Poerio, who joined as chief executive in November, said he had "worked hard to focus the group's limited resources where they can best deliver value and cash in the short term".
The AIM traded company said it is pursuing options, including legal proceedings, in respect of the collections of trade debtors arising from product sales, with 0.66m of cash as at 26 February and approximately 0.76m of undrawn facilities and was exploring further funding options.
Defenx will now embark on a new strategy, focused on delivering cloud storage solutions to corporate customers, a move which that company said reflected "the changing competitive landscape, growing demand for cloud-based services, feedback from existing and potential customers".
"The refocused strategy, centred on our existing cloud storage technology, addresses real demand from the corporate and public administration markets. Yet there is plenty of hard work ahead of us to ensure we deliver competitive products and support customers to re-build our business," said Poerio.
As of 0851 GMT, Defenx's shares were down 16.05% at 17.00p.