Why the Integrated Research (ASX:IRI) share price is dropping lower

The Integrated Research Limited (ASX: IRI) share price is under pressure after releasing its guidance for the first half…
The post Why the Integrated Research (ASX:IRI) share price is dropping lower appeared first on The Motley Fool Australia. –

Woman investor looking at ASX financial results on laptop

The Integrated Research Limited (ASX: IRI) share price is dropping lower on Friday morning.

At the time of writing, the user experience and performance management solutions provider’s shares are down 2.5% to $2.42

Why is the Integrated Research share price dropping lower?

Investors have been selling the company’s shares this morning following the release of an update on its guidance for the first half of FY 2021.

At the end of December, the Integrated Research share price crashed lower after it revealed that its trading performance had been below expectations due to a continuation of customers deferring purchasing decisions.

In light of this, it provided guidance for half year revenue in the range of $34 million to $37 million and profit after tax in the range of breakeven to $2 million. This compared to revenue of $53.2 million and profit of $11.8 million in the prior corresponding period.

This morning the company advised that it is in the early stages of preparing its interim financial results. Based on internal management accounts and subject to audit review, it anticipates both revenue and profit after tax to be at the lower end of its guidance range.

It notes that the AUD/USD exchange rate strengthened by another cent on the last day of the year, resulting in further unrealised exchange losses.

This means that Integrated Research is expecting revenue of ~$34 million and no profits for the half. This represents a 36% and 100% decline, respectively, on the prior corresponding period.

At the end of December, the company’s cash balance (net of debt) stood at $1.7 million. This is down from $4.7 million at the end of June.

New product launch.

Management also advised that the company has expanded its Collaborate product line with the release of new cloud solutions for Microsoft Teams and Zoom.

A further update on its cloud-based solutions will be provided at the formal half year results announcement scheduled for 18 February 2021.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Integrated Research Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Integrated Research (ASX:IRI) share price is dropping lower appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!