LONDON, June 18 (Reuters) - Translation software firm SDL slashed its full-year profit guidance on Tuesday after sales of licenses for its technology and language services dropped off in the first half, sending its shares down by a third.
The firm, which sells rights to its translation software as well as consulting and language services, now expects pretax profit for 2013 to be in the range of 15-20 million pounds, down from 35.5 million ($55.8 million) in 2012.
Analysts had forecast a 2013 pretax profit of 30 million pounds, according to a Thomson Reuters I/B/E/S poll.
Shares in the firm, which had already lost 25 percent of their value in 2013, fell 34 percent to 255.3 pence by 0711 GMT.
Management said that sales of licenses for its translation technology and its services were below expectations for the first five months of the year.
SDL is currently rolling out a new sales and marketing plan to combat under investment over the last two years.
“The build in pipeline for both services and technology with just 1-2 months of our sales and marketing investments in place gives the Board confidence that sales will improve,” the company said in a trading update.
“However, the Board is taking a more cautious view of the speed of services volume recovery and licence sales growth.”