Eastgate Technology Ltd. provided earnings guidance for the six months ended February 29, 2012. For the period, the group is expecting to report a loss. The board expects the group to report a loss due mainly to the company intended to novate the lease of an industrial property to a prospective tenant since the last sub-tenant vacated the premises in mid October 2011. Negotiations with the landlord and the prospective tenant are still in progress as the requisite approvals from the relevant government authorities have yet to be obtained. The negotiation process was longer than expected and under-provision of the company's prior years income tax.