Stilo International reported its full-year results for the year to December end on Thursday, sending shares downwards.
The company, which focuses upon developing software tools and cloud services to allow business to convert to XML format, reported sales revenue for the period of £1,487,000, down from £1,894,000 a year ago.
Meanwhile, profit after tax came in at £177,000, almost half that of the £313,000 posted back in 2017.
Nevertheless, Stilo International said it had reduced operating costs and net of capitalised development costs to £1,358,000 during the course of the year.
The company said some of its clients in 2018 included Edwards Lifesciences, Visa, Viewpoint, ARRIS, Synopsys, Deltek, Varian and TIBCO.
David Ashman, Chairman, commented on the financial results:
“Total sales revenues for the period decreased significantly, principally due to an expected reduction in OmniMark-related revenues from one major customer. However, it was encouraging that our Migrate revenues held up well, as new customer wins compensated for the expiry of a major contract. We were also successful in making some initial breakthroughs with sales of AuthorBridge to new customers.
He also announced the payment of an increased final dividend of 0.06p per share, meaning the total dividend for the year was 0.12p.
Looking ahead, Stilo International said in the short-term growth will be largely driven by sales of Migrate and OptimizeR solutions to new customers.
Nevertheless, the firm noted that 2019 is set to be a “challenging year”, with the company unable to predict demand.
Stilo International operates from offices in Swindon, UK as well as Ottawa, Canada.
Shares in the company (LON:STL) are currently trading -12.28% as of 14:15PM (GMT), on the back of the results announcement.
Elsewhere in the markets, shares in property company Savills (LON:SVS) fell on Thursday after reporting a fall in annual profits.
Meanwhile in retail, Debenhams (LON:DEB) responded to a £150 million loan offer from Sports Direct, causing shares to bounce.
Earlier this week, high street retailer Mothercare announced the sale of its Early Learning Centre brand for £13.5 billion, as it looks to restructure its business.