SDL's (SDL) full-year performance was disappointing, although not unexpected. In December, shares in the language translation technology specialist plummeted as it flagged issues that might dampen profits. Accordingly, some software deals did not close before the year-end, while revenues were constrained due to a faster-than-expected shift towards software-as-a-service (SaaS) sales, away from perpetual licences. Moreover, the language services division – comprising 64 per cent of sales – suffered from gross margin pressure in the first half, as it took on one-off costs to meet increased demand.
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