News

Glotel takes US hit



Telecommunications consultancy, Glotel has warned that its year-end results are likely to be lower than expected following a staffing freeze among its US telecoms clients.

The group, which less than six months ago recorded record-high turnover figures in the US, has seen its revenues fall by 28 per cent since the industry took a sudden, and unexpected downturn.

The loss of one of its biggest accounts, Northpoint Communications, which last month filed for bankruptcy, has also been a blow to the company, resulting in a bad debts provision of around £1m.

Despite the slump in American sales however, UK trading remains in line with director's expectations, and Glotel says it is confident that the group will return to its "normal growth pattern" once market conditions improve.

Following the profit warning, analysts cut pre-tax profit forecasts from £8m to £5.3m.

Related Topics: IT strategy, VIEW ALL TOPICS

Email Alerts

Register now to receive ComputerWeekly.com IT-related news, guides and more, delivered to your inbox.
By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy
 

COMMENTS powered by Disqus  //  Commenting policy