Defenx Plc announced that the group's full year revenue outcome is particularly dependent on when a small number of high value contracts start and the treatment of the resultant billings under the Group's revenue recognition policy. It has become clear that previously anticipated sales orders are unlikely to be recognised in 2017, with a corresponding adverse impact on the Group's financial performance for the year to 31 December 2017. While the Group continues the development of its core security, backup and protection products, the delivery of product updates to address certain recently-identified performance issues and back-end integration is taking longer than expected. Further, the broadening of the Company's product portfolio, notably to address the corporate sector, is behind schedule. Accordingly, the conversion of opportunities into firm orders is taking longer and requiring more investment than was initially anticipated. The Group is planning to start the strategic partnership with BV-Tech SpA (BV-Tech) as soon as possible. The Master Services Agreement with BV-Tech has only recently been signed, which allows BV-Tech to be a technology partner and support the company in development activities. BV-Tech may become, in the future, an important channel to corporate customers to whom expanded product portfolio can be sold. These factors combined are expected to result in the financial results for the year to 31 December 2017 being materially below market forecasts and the Board currently expects to report a loss for the full year.