Telco software company Clarity International is facing an angry employee and shareholder base as sales contracts are delayed and more staff are laid off.

Clarity, which is 38 per cent-owned by listed IT services company Powerlan, warned investors earlier this month of a surprise $5.5 million interim loss. It also said a delay in the collection of a substantial receivable meant operating cash flow for the December quarter would be negative $4.5 million, not break-even as previously anticipated.