Shares of Mycelx (LSE: MYXR) fell by as much as 7% in early trade, after the water treatment technology company revealed first-half revenue will be less than in the same period in 2013, although full-year expectations should still be met.
Mycelx explained that the drop-off was due to customer-related delays, which resulted in less lease and media revenue than initially anticipated. Mycelx said it has a “strong pipeline of opportunities” moving into the second half of the year, however should any individual projects suffer delays then then the associated revenue will move into 2015.
The first half of this year has seen Mycelex sell a water treatment system to a major oil and gas producer in India, while extending and renewing rental contracts with petrochemical customers in Saudi Arabia. Mycelex has invested in a new warehouse in Texas to store lease equipment for the Americas, complemented by several new hires in the US — concentrating on business development and field services among other areas.
The chief executive, Connie Mixon, commented:
“We are pleased to have achieved further contract wins and renewals in the first half and our confidence in the market opportunities available to MyCelx has underpinned our continued investment in personnel and infrastructure. The strength of our pipeline demonstrates that we remain very well positioned to exploit the demand for our products.”
