Osborne Park technology company ISS expects to book a $2.1 million loss for the year, despite recording a profit in the first half of the financial year.

The industrial software company said its outlook remained "overall subdued".

ISS, which develops software for the oil and gas, minerals and food and beverage sector, said it had suffered from softened demand in the past six months.

Revenue for the second half of the financial year was forecast to drop by nearly half and expected to come in at about $6.4 million compared to the $11.2 million booked in the six months to December 31.

Overall revenue is expected to drop by 2 per cent on 2008 levels.

ISS shares shed 3 per cent to 16¢.

VIVIENNE RYAN