Queensland-based stock market analysis software provider Tomato Technologies Limited (ASX:TMO)) has revised its earnings forecast for the 2005/06 half year down as a result of the write off of non-recoverable loans and poor sales in November and December.

Tomato’s revised EBIT expectations for the half year ended 31 December 2005 is in the order of $1.5m. This compares to an EBIT of $4.142m for the half year ended 31 December 2004 and an EBIT of $2.495m for the half year ended 30 June 2005.

The board has issued a statement saying that while sales fell below expectations towards the end of the 2005 calendar year it
believes that the company is now better placed to achieve its potential in the second half of the 2006 financial year. It is anticipated that the EBIT for the second half of the financial year will exceed that of 2005, according to the Tomato board.

Tomato says the level of sales in January improved over the prior two months and management is focussed on increasing sales, maximising margins and controlling operating costs to deliver a suitable return to shareholders.

In a separate announcement Tomato CEO and a one of the company's founders, Craig Duffy, announced he would not renew his employment contract with the company, citing family reasons. His employment with the company will cease on 31 March 2006.

TMO shares closed down 2c to finish on 27c in moderate trading.