The profit guidance for the year ending 30 June 2010 is due to deteriorating trading conditions in both the lifestyle and professional segments, the company has said.

They claimed that the softer market has resulted in projected revenue for the second half that is likely to be around 10 - 15 per cent lower than the prior corresponding six month period to 30 June 2009.

The company forecasts that it will make a profit after tax in the range of $1.6-$2.0 million for the year ended 30 June 2010. This compares to a profit after tax of $1.8 million for the year to 30 June 2009.

Yesterday we revealed that Amber had written to JB Hi Fi after they discovered that a Sydney-based retailer, Digital Cinema, was buying stock from the mass retailer and on-selling it to consumers. As part of the agreement with JB Hi Fi, Digital Cinema got a 50 per cent discount off the recommended retail price of Onkyo products which are distributed by Amber Technology.

In the past Digital Cinema has purchased Onkyo and Optoma goods from overseas and sold them at cheaper prices than certified Amber Technology dealers. This resulted in Amber Technology asking a third party company to obtain stock so they could track down serial numbers.

Digital Cinema, were forced to offer their own warranty support on the Onkyo products purchased from overseas, after Amber Technology and the manufacturer refused to offer warranty support due to the products being purchased from overseas distributors at significantly cheaper prices than Amber offers for the same products in Australia.

Amber Technology also refused warranty claims on the products purchased by Digital Cinema from JB Hi Fi when consumers submitted the products to Amber Technology, despite the fact that the products had been sold by Amber to JB Hi Fi in the first pace.

Brian Lee the General Manager of the lifestyle division at Amber Technology, said a "fine line" can be drawn as to whether the products are second hand when purchased by Digital Cinema, from JB Hi Fi and then on-sold to consumers.

SmartHouse has been told that the Australian Competition and Consumer Commission  is set to investigate the issue after Paul Godfrey, a director of Digital Cinema, approached the ACCC claiming that Amber Technology  was engaging in restrictive trading practises.