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LONDON (Alliance News) - Starcom PLC said on Monday it expects a "significantly" narrowed interim loss, with revenue also expected to rise more than 50%.
Starcom, which makes wireless solutions for the remote tracking and monitoring markets, is guiding for revenue of around USD3 million for the six months to June, compared to USD1.9 million the same period a year prior.
Its earnings before interest, tax, depreciation, and amortisation loss for the period is guided to be less than USD100,000, compared to USD283,000 a year prior.
Starcom is, however, guiding for a lower gross margin, at around 39% compared to 47%, due to "a still dominant" contribution from its lower-margin Helios product, though it is continuing to improve is product mix.
The higher revenue, Starcom said, is due to a focus on larger clients, with just two clients won in the first half bringing in most of the USD1 million revenue rise.
Starcom launched its Watchlock Cube product in the second quarter of 2018 and said it has received good interest, with 500 units sold at promising margins, and it expects further orders.
Overall, it said, activity is "extremely" high and it is now looking at new areas for its technology. It is confident in revenue and margin improvement in 2018, and hopes to become Ebitda positive this year.
Chairman Michael Rosenberg said: "For the first time in our history we are beginning to see a truly global opportunity for Starcom. We are receiving a record number of enquires for our unique tracking systems from significant multi-national businesses and organisations, including the major European industrial group.
"We are becoming the 'go to' company to provide specialised solutions in areas which, to date, have never had the technical knowhow to deploy tracking and monitoring products, such as air cargo, livestock tracking and crop moisture level monitoring."
He added: "Our flexibility and many years of experience in this market is allowing us to innovate to new levels, developing specific monitoring systems which our clients can deploy to create opportunities otherwise unheard of. We foresee this strategy continuing as our reputation grows in the industry."
Starcom shares were 2.7% lower on Monday afternoon at a price of 3.04 pence each.
