Geometric Soft lowers profit guidance by 5-8%

Geometric Software Solutions has lowered its profit guidance by 5-8% for the first quarter of current fiscal due to delay in many projects.

"It is prudent to revise our revenue and profit guidance downwards by 5 to 8 percentage points. The commencement date of several projects has been shifted to the next quarter. The effect of this has been compounded by a delay in completing a major fixed price project, making it ineligible for revenue recognition. Clearly this affected our utilisation levels and the combination of these factors will have an adverse impact on margins," Manu Parpia, MD, Geometric Software, said in a release issued to the BSE.

In April, the company had stated in an analysts conference that the first quarter would be weak due to an adjustment in resource requirements by one of their major customers.

Parpia further said that the company remains confident of  its strategy but believes the current quarter is an aberration and "we expect growth in the next quarter as many projects will be commencing shortly".