(Rewrites, adds detail.)
By Simon Zekaria
LONDON--Shares in SDL PLC (SDL.LN) fell Tuesday even as the
cloud software group recorded a rise in earnings on higher revenue,
as bookings from its technology business dipped.
Pre-tax profit in the six months to June 30 rose to 6 million
pounds ($9.4 million) from GBP3.1 million. Revenue increased to
GBP134 million from GBP129 million, boosted by language
services.
The group said its language services operation is seeing strong
momentum with a good outlook
However, while revenue from its technology operations rose 3%
year-over-year, bookings fell 6% on a constant currency basis.
"New bookings have been disappointing," Chief Executive Officer
Mark Lancaster said. "We expect to see growth for the year as a
whole, as our pipeline converts and our sales force continues to
bed in."
At 1306 GMT, shares fell 3.3% to 387 pence, valuing the company
at GBP325 million.
Weakness in technology weighs on the results, Shore Capital
analyst Peter McNally said. "SDL's recent history has been clouded
by disappointments and we hope that this is not a matter of hope as
a longer term restructuring story is still taking shape and is an
opportunity for investors, despite our short term concerns."
The group said its trading expectations for the year are
unchanged.
Write to Simon Zekaria at simon.zekaria@wsj.com