Orion Health says full-year sales fell but it still expects to post a narrower loss and be profitable in 2018. It has been in talks with potential investors in the business.
Orion's share price fell 14.5 per cent to $1.65 shortly before 10:30am.
Operating revenue in the 12 months ended March 31 was probably between $194 million and $200m, down from $207m a year earlier, chief executive Ian McCrae said in a statement. The net loss was between $32m and $38m, compared to a loss of $54.4m in 2016, it said.
"A number of contracts that were expected to close before the end of FY2017 did not do so but remain in progress," said McCrae. "Management takes full responsibility for not executing as efficiently on the sales pipeline as had been forecast. The delay in the finalisation of contracts is not attributable to a specific factor as every potential customer situation is unique. Improved sales processes and forecasting are core areas of focus."
The company's closing cash position for the year is now projected to be between $2m and $6m and Orion said it has embarked on a strategic review that includes "discussions with a number of parties over the past quarter that may result in a partnership or minority investment in the company."