LONDON (Alliance News) - Electrical Geodesics Inc Thursday said that the first half of its financial year has been disappointing.
Don Tucker, chairman and chief executive, said the company is set to report a "disappointing" first half, with revenue expected to be below that reported in the equivalent period of the prior year.
"While EGI has made solid progress towards our key, potentially transformational products for imaging and modulating electrical activity in the brain, these products are not yet fully revenue-generating. Revenues from our current product line in the first half have not met our expectations," Tucker told shareholders at the company's annual meeting.
"Internal factors contributing to this shortfall have included shipment delays for our GES 400MR product where supplier changes resulted in longer lead times for key components and customers delaying purchases until the next update of our operating software, Net Station 5.2, becomes available which is now scheduled for release later this month," Tucker said.
Tucker said that external factors, such as the strength of the US dollar, have also played a part in the company's fortunes.
"A number of external factors have provided headwinds including the strong US dollar which has impacted export sales and a decline in Chinese imports as the industry responds to changing anti-corruption regulation which has increased the regulatory burden on our clients and potential clients and therefore sales cycle time," Tucker said.
The chairman and chief executive said that Electrical Geodesics is cutting spending that isn't directly linked to its key products, namely GeoSource 3.0 imaging and localisation software, its NOLIS database and delivering its Geodesic Transcranial Electrical Neuromodulation technology for research use in the autumn.
"Our feasibility study seeking to demonstrate the effect of GTEN in modulating epilepsy is progressing well," Tucker said.
Meanwhile, Chief Financial Officer Christine Soden is to step down to pursue other opportunities. Soden will remain as a non-executive director. The company is looking for a permanent replacement.
Electrical Geodesics shares were untraded at 83.00p Thursday afternoon.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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