SDL Falls as Technology Bookings Dip -- Update

(Rewrites, adds detail.)

By Simon Zekaria

LONDON--Shares in SDL PLC (SDL.LN) fell Tuesday even as the cloud software group recorded a rise in earnings on higher revenue, as bookings from its technology business dipped.

Pre-tax profit in the six months to June 30 rose to 6 million pounds ($9.4 million) from GBP3.1 million. Revenue increased to GBP134 million from GBP129 million, boosted by language services.

The group said its language services operation is seeing strong momentum with a good outlook

However, while revenue from its technology operations rose 3% year-over-year, bookings fell 6% on a constant currency basis.

"New bookings have been disappointing," Chief Executive Officer Mark Lancaster said. "We expect to see growth for the year as a whole, as our pipeline converts and our sales force continues to bed in."

At 1306 GMT, shares fell 3.3% to 387 pence, valuing the company at GBP325 million.

Weakness in technology weighs on the results, Shore Capital analyst Peter McNally said. "SDL's recent history has been clouded by disappointments and we hope that this is not a matter of hope as a longer term restructuring story is still taking shape and is an opportunity for investors, despite our short term concerns."

The group said its trading expectations for the year are unchanged.

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