LightwaveRF PLC (LON:LWRF) shares plunged on Monday after the maker of smart home products warned its full-year losses will be “materially below” market expectations and no less than last year’s GBP2.54mln loss.
In a trading update, the AIM-listed company said it received funding, needed to support the previous growth in revenue, later than expected, resulting in lower sales in the fourth quarter.
In July, the firm had said it anticipated full-year revenue would be more than double last year’s, as the first three quarters registered a 98% increase in revenue year-on-year to GBP3.7mln, with higher sales requiring further working capital, marketing and development.
Cash at 30 September was GBP500,000, in line with the same period in 2018 before the further financing, the company said.
“Whilst revenue is significantly higher than last year, the expected full-year results are still frustrating following the substantial progress made,” LightwaveRF chief executive Jason Elliott said in the statement..
“As well as continuing progress with direct to consumer and direct to trade sales, supported by our LightwavePRO training scheme, we anticipate early further progress with some major customer initiatives and revenue soon returning to run rates seen prior to Q4,” he added.
In afternoon trading, LightwaveRF shares were down 31% to 4.25p.