A failure to convert pilot projects into paying customers is keeping Ottawa-based Leonovus (TSX-V:LTV) in the red, according to the firm’s third-quarter earnings released Monday.
The firm, which develops software to help optimize companies’ storage, reported nil revenues for the three months ending Sept. 30. Through reduced operating expenses, the company trimmed its net loss for the quarter to roughly $1 million, down from $1.4 million a year previous.
Leonovus said last year that it expected revenues to start flowing from three projects it was implementing with an unnamed major Canadian bank. The firm now says it doesn’t expect to convert any of those pilots into paying deals, citing turnover at the bank and changes in its internal technology.
The company said it still expects to collect revenues next year from a Build in Canada Innovation Program deal with the federal government.
Earlier this year, Leonovus released a new product, dubbed the Smart Filer, which looks to extend the capacity of existing file storage solutions. The company said it expects revenues from the new product will also begin to flow next year.
Shares of Leonovus have dropped to 2.5 cents in trading on the TSX Venture Exchange from a price of 18 cents at the start of 2019.