Sygnity Slumps as Software Maker Cancels Forecast: Warsaw Mover

Sygnity SA (SGN), a Polish software maker, fell to the lowest level in 17 years in Warsaw after withdrawing its 2012 forecasts.

The stock fell 7.2 percent to 11.14 zloty, the lowest since October 1995. That values the company at 132 million zloty ($41 million). It has lost 38 percent this year, compared with a 9.4 percent advance for the WIG20 Index. The Polish market was closed yesterday.

The software producer withdrew this year’s forecasts, citing “deterioration“ of revenue and earnings before interest and taxes, it said in a regulatory filing on Oct. 31. Sygnity had seen sales at 580 million zloty to 620 million zloty and Ebit at 5 percent to 7 percent of sales.

“The company continues to lose credibility,” Konrad Ksiezopolski, an analyst at Espirito Santo Investment in Warsaw, said by phone. “Now the market is waiting for Sygnity’s new strategy and it will take them some time to regain investors’ confidence.”

To contact the reporter on this story: Piotr Bujnicki in Warsaw at pbujnicki@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net