LONDON (Alliance News) - Neurodiagnostic medical technology company Electrical Geodesics Inc on Tuesday said its revenue for the first half missed its expectations, as flagged in a July trading update, though its pretax loss was narrowed by an improvement in its gross margin.
The company said its pretax loss for the six months to the end of June was USD2.1 million, compared to a USD2.3 million loss a year earlier, despite revenue falling to USD5.2 million from USD5.8 million. The group's gross margin improved to 60% from 59%, however, thanks to cost controls the group put in place.
Electrical Geodesics said its revenue was hit by the adverse impact of a strong US dollar on European sales and by uncertainties in the Chinese market, in particular as a result of new controls and over contractual terms.
In addition, some contracts the group had been hoping to book in the first half were delayed due to supplier issues, the long buying cycle time for research and hospital markets, and by delays in finalising its Net Station 5.2 software roll out. Net Station has now been launched, and the company said the initial reaction has been encouraging.
"Although we were surprised and disappointed with our poor financial performance in the first half of the year, we are encouraged by the strong customer response to the new products we are now bringing to market. We have made the necessary adjustments to manage resources, and are now confident of moving towards self-sustainability in the near term," said Chairman and Chief Executive Don Tucker.
Tucker added the investments the company had made over the past three years "are now bearing fruit" and said its revenue prospects in clinical and research markets now look brighter going into the second half and into 2016.
Shares in Electrical Geodesics were untraded, having last traded at 83.0 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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