LONDON (Alliance News) - Electrical Geodesics Inc Wednesday said its losses widened in the first-half, as sales and research and development costs increased.
The company posted a pretax loss of USD2.3 million for the six months ended June 30 compared with USD787,000 loss a year earlier, while revenue increased to USD5.8 million from USD5.4 million a year earlier.
During the year, sales, marketing, administrative and research and development costs all increased which hurt the company's results significantly.
However, Electrical Geodesics said it saw an increase in revenue from its operating divisions in Europe and Asia which more than offset the 7% decline seen in North America. It said research institutions remain the core of its customer base and throughout 2013, grant funding to universities and institutions was adversely impacted by the US federal budget sequestration and this overhang into 2014 resulted in delays in finalising grant awards.
In addition, grant income fell as a number of long-term projects came to an end. However, it said a new three-year award for the Ink-Net project plus other prospective awards indicate that grant revenues will increase in the second-half of the year and into 2015.
Looking ahead, the company said it is confident in achieving market expectations for the full-year, but "to exploit fully the potential of our technologies in the management of disease, the directors believe additional financial and other resources will be required."
Plans are being formulated to progress the clinical development of Geodesic transcranial electrical neurodulation in epilepsy and further details will be announced in due course, the company said.
Electrical Geodesics shares were untraded Wednesday morning, quoted at 138.00 pence per share.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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