(Alliance News) - Amino Technologies PLC on Tuesday said cost reduction initiatives helped it to swing to profit in the first half of its current financial year despite a reduction in revenue.
The entertainment technology provider reported revenue of USD34.6 million for the six months to the end of May, down 16% compared to USD41.2 million reported a year prior.
Software and service revenue decreased by 22% in the first half to USD3.6 million, primarily as a result of reduced AminoTV professional services for the company's largest customer as part of a shift to project maintenance from implementation.
Device revenue, meanwhile, declined by 15% to USD31.0 million, as expected, Amino said, as a result of a focus on higher margin accounts.
The AIM-listed company said it swung to profit of USD2.5 million from USD156,000 loss reported in the first half of its financial 2018. Amino's operating expenses were cut to USD13.5 million from USD17.5 million.
Amino said it continued to invest in research & development of new products and spent USD4.8 million on these activities, though lower than USD5.8 million last year.
"Amino made good progress in the first half of the year, in macro-economic conditions which remain challenging," said Non-Executive Chair Karen Bach. "Our strategy is on track, which aims to drive higher quality of earnings through a focus on recurring software revenues and services in addition to value-add hardware."
Bach added: "Ongoing progress with our transformation strategy allied to our strong order book, backlog and sales pipeline coverage underpins the board's confidence in guidance for the full year."
Amino shares were trading 1.3% higher on Tuesday in London at 117.51 pence each.
