LONDON (ShareCast) - Shares in digital security group Intercede were sent lower after full-year revenues fell and it slipped into losses, although its new MyTAM secure android app delivery service has been well received after its recent launch.
Preliminary results for the year to 31 March show the AIM-listed digital identity software developer lost £1.3m after tax, having made a profit the year before, on revenues down to £8.8m from £9.8m due, with several factors blamed.

Not only were there restraints on US government funding, but also two US computer security standards were delayed by three months and several existing customers were slower to take on products.

On top of this, operating costs rose 8.5% to £10.2m as Intercede continued to invest in developing its technology, improving its infrastructure and sales capacity.

Chairman and chief executive Richard Parris said: "Our strategy remains unchanged, because the cybersecurity market opportunity is, if anything, bigger than previously thought, especially in mobile, even though the immediate fiscal and political landscape has slowed down initial orders."

Parris plans to continue investment in the company, with the launch of MyTAM, a trusted application management service, receiving several orders, with revenue to be realised from 2016 onwards.

Broker FinnCap said the results were line with the April trading update and that long-term prospects "remain undimmed".

"Net cash remains strong at £5.9m, and the February launch of MyTAM, the fully hosted cloud service providing security for applications needing to store personal data, has already resulted in multiple partnership announcements. Share price momentum remains dependent on proof of the delivery."

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