VANCOUVER – OSI Geospatial Inc. (TSXV:OSI) stock experienced a double-digit drop Monday after the company said its U.S. research and development operations will suffer a 50 per cent decline in revenue in fiscal 2011.
On the TSX Venture market, OSI stock was down a penny, or 11.11 per cent, at eight cents, at midday.
The decrease in U.S. revenue, which represented 55 per cent of total revenue in 2010, is primarily due to defence budget cuts that have resulted in the unexpected termination of key projects and the delay of projects that were expected to close in fiscal 2011, OSI said in a release.
Further information will be available in the company’s third-quarter financial results being released by the end of October, it said.
“We have taken the necessary steps to limit the impact of this very challenging situation but there continues to be uncertainties with the future plans for military research and development spending in the U.S.,” said president and CEO Ken Kirkpatrick.
“We currently expect 2012 to be another challenging year for our R&D business.”
OSI products and services enable customers to integrate and visualize live data with any combination of sensor data, imagery, maps and charts. Its systems and software are used by military, government and commercial customers around the world.
Local news from metronews.ca/vancouver
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