Its share price was subsequently savaged by investors, losing nearly 30% in value after the announcement and trading down to 50c, half its listing price.
The reduction in the Christchurch-based company's expected earnings before interest, tax, depreciation, and amortisation was blamed on production and product accreditation delays for its energy-saving light bulbs, higher than anticipated freight costs and foreign exchange revaluations.
Significant production delays for new downlights for the Australian market meant a major customer order forecast to be filled before March would now not be filled until early in the new financial year.
Forsyth Barr investment adviser Peter Young said yesterday the general market had not liked the announcement of the forecast reduction and the share price was down 28.57% to 50c by yesterday afternoon, significantly less than the IPO price of $1.
While production delays meant Energy Mad would not be able to fill that major order in this financial year, "they have certainly not lost the customer" and that order would be filled in the new financial year, Mr Young said.
Craigs Investment Partners broker Chris Timms said it was a "black mark" against the company from an investment point of view.
The market wanted confidence and the ability to meet promises.
Such an announcement did not help when it came so soon after Energy Mad listed on NZX and the company had a "long row to hoe" to recover to where it started, Mr Timms said.
The company was disappointed to be advised recently of the delays and had since addressed underlying issues with the factory, managing director Chris Mardon said.
Revenue from the order would be deferred, not lost, as the customer order remained in place.
Energy Mad held a 20% stake in its China-based production facility.
While the company was "well advanced" in gaining 20,000-hour accreditation (up from its current 15,000-hour accreditation) for Ecobulb Spirals in Australia, it had not been achieved within the anticipated time frame and that had delayed projected sales to some customers. It was expected to gain that accreditation by May, Dr Mardon said.
Energy Mad had implemented an improved pricing methodology to avoid future unexpected freight costs and had increased the Ecobulb Downlight customer prices.
The company, which is a finalist in four categories in the 2012 New Zealand International Business Awards, gained a waiver from NZX listing rules after its initial public offering (IPO) failed to attract the minimum 500 shareholders. It raised $5 million after extending its IPO period.
In November, the company said it was on track to deliver its full-year prospectus projections, after posting a $300,000 first-half net loss, which it attributed to cash constraints delaying the placement of large Australian Ecobulb orders, BusinessDesk reported.
