Bulletproof warns of worse-than-expected $2 million loss

Bulletproof has warned that its full-year financial results will be worse than previously expected, with a forecasted EBIT loss of $2 million.

The cloud solutions provider previously anticipated an EBIT loss of $1.5 million for the financial year ending 30 June 2017.

However, revenue is expected to be slightly better than anticipated from $48.5 million to $49 million. These forecasted results have not yet been audited.

In a statement to the ASX, Bulletproof said the downgrade was a result of variance in expense items, despite revenue from the last quarter beating internal forecasts.

Issues cited include foreign exchange rate issues and revenue items that should not have been factored into forecasting as recurring. Bulletproof said that cost of sales savings have taken longer to materialise.

"While the updated forecast still reflects a turnaround in underlying profitability from H1 FY17, work is continuing throughout the business to accelerate improvements and bring business performance up to expectations," said chief executive Anthony Woodward.

The publicly listed firm has embarked on a company-wide restructure, which saw 30 full-time positions made redundant from its engineering team in February. The restructure cost Bulletproof $809,000, but the company expects to recoup $4.5 million in annualised savings.

A month after the round of redundancies, chief operating officer Mark Rainbird resigned after just six months in the role.

Last financial year, Bulletproof's revenue was up 69 percent to $47.2 million. The company also turned a $1.8 million net profit for the 2016 financial year.