(Alliance News) - Global Invacom Group Ltd on Thursday said it would be conducting an operational review of the business, after seeing earnings fall on product delays in the year-to-date.
Global Invacom is a Singapore-based satellite communications equipment and electronics provider.
For the nine months to September 30, the company reported revenue of USD56.5 million, down 9.7% from USD62.6 million a year prior.
It also swung to a loss before interest, tax, depreciation and amortisation of USD2.4 million, from earnings of USD1.4 million the previous year.
Global Invacom attributed this downturn to the residual effects of Covid-19 on global supply chains, which it argued has had "a profound impact" on the availability of semiconductors, alongside price increases to raw materials and transportation costs.
It also noted a more recent decline in demand for satellite televisions, and unforeseen delays in the completion of its XRJ product, which delivers Ka-Band VSAT capabilities for land and marine applications
The company now expects these delays to impact its full-year performance.
As at September 30, the group had cash of USD10.4 million, down 2.8% from USD10.7 million a year ago.
In an attempt to reduce its fixed cost base, it has outsourced the manufacturing of some products to a strategic partner in the Philippines in order to reduce costs within its China operations.
The board has also begun an operational review of the broader business, with the aim of creating a "more robust" operational platform. It will consider the operational structure and management of the business.
Looking ahead, Global Invacom said management will also evaluate the supply chain in order to maximise efficiencies and cost savings to ensure the group is ideally positioned for growth.
Global Invacom shares were last traded on October 14 at 6.00 pence each.
By Holly Beveridge; hollybeveridge@alliancenews.com
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