December 1, 2008 / 8:04 AM / 10 years ago

UPDATE 1- Visual Defence lowers sales forecast, cuts jobs

* Closes Vancouver office, cuts head-office jobs

* Sees C$4 million full-year operating loss

* Sees cash reserves of C$8 mln at Dec. 31 (Adds details)

Dec 1 (Reuters) - Visual Defence Inc VDI.L, a provider of security systems, slashed its full-year revenue forecast by 27 percent on Monday, citing delays and deferrals in the market for its products and projects, and said it had cut 20 percent of jobs at its head office.

The Canada-based company also said it closed its office in Vancouver, British Columbia.

The company said it now expected to report revenue of about C$16 million ($13 million) for the year ending Dec. 31, compared with its earlier forecast of C$22 million.

It said it expected to post an operating loss of around C$4 million for the year.

Visual Defence, which continued its investment in new technologies totaling more than C$1.9 million for research and development during the year, said it expected its cash position at end-December to be about C$8 million.

“The board believes the measures taken to invest in new technologies, responsibly reduce costs and focus on delivery and customer service will best prepare the company for the uncertainty in the markets in the year ahead,” the company said.

Shares of Visual Defence closed at 7 pence on Friday on the London Stock Exchange. The shares have fallen by more than half in the past year. ($1=1.235 Canadian Dollar) (Reporting by Tresa Sherin Morera in Bangalore; Editing by Mike Miller)

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