GLG reported a higher net loss for the quarter ended June 30 of C$12.5m, or 38 Canadian cents a share, from C$277,660, or 1 Canadian cent a share, for the prior year period. Meanwhile, sales were up 45 percent to C$15.2m.
The company said that for business outside of China, including in the United States, companies have not used their existing supply of stevia as quickly as anticipated, as it is taking longer than envisaged to get new products to market.
It cut its full-year revenue outlook C$160m-C$200m to $130m-$170m.
“Markets outside of China including the US, Mexico, South America, and Australia have been active with customer projects, however, the time that it is taking to convert projects into launched products is taking longer than originally anticipated,” the company said in a statement. “Therefore, distributors are taking longer to work through product inventories delivered in the fourth quarter of 2010, and we are decreasing our revenue expectations in 2011 from those customers as a result.”
Following the announcement, the company saw its shares fall 15 percent to C$5.45 on the Toronto stock exchange before recovering to C$5.99 on Tuesday.
This is not the first time GLG Life Tech has warned that its revenue outlook could be impacted by delays in potential distribution deals. In November 2010, GLG said that 50 percent of its revenue was dependent on distributors with whom it had agreements across the world, along with new customers and distributors in the US and Europe, with which it was in negotiations. It said at that time that it had experienced delays in those negotiations.