SOFTING AG previously forecast EBIT of slightly more than EUR 5 million for the 2017 financial year. SOFTING adjusts its expected EBIT to a figure of between EUR 2 and 2.5 million.
Revenue developed largely as expected during the first nine months of 2017. A subsidiary that works for a major international automation electronics manufacturer communicated to SOFTING that a payment of just under EUR 2 million for development costs expected this year will be delayed beyond the end of the year. As things stand, this payment for a newly developed product is expected to be made in full or in parts in 2018. Additional portions of the payment are expected to be made together with product deliveries in 2018.
Furthermore, the considerable foreign currency translation effects seen in the balance sheet as a result of the development of the Euro-US dollar exchange rate will have a negative impact on earnings for the year. This impact could add up to EUR 1 million by the end of this year.
Despite its positive performance seen and expected in the fourth quarter 2017, SOFTING does not expect being able to compensate for the negative factors described above.
The Executive Board