(Alliance News) - SimiGon Ltd said its 2019 loss widened on higher costs from the purchase of new hardware and equipment and a decline in revenue.
For the year, the simulation training solutions provider said its pretax loss was USD1.5 million, compared to USD783,000 the year before.
SimiGon's performance was hurt by a decline in gross margins to 63% from 81% and an increase in the cost of sales to USD1.8 million from USD973,000 the prior year, attributed to the purchase of equipment provided as part of SimiGon's programs with the US Air Force and Israeli Air Force, awarded to the company during the year.
Revenue, meanwhile, edged down to USD4.9 million from USD5.0 million.
SimiGon said that the Covid-19 pandemic has not made a significant impact on its operations, and the company has not received any cancellation notices from its customers relating to active purchase orders.
Aside from the outbreak, SimiGon's outlook is positive due to its research & development roadmap and robust demand for its training services.
"SimiGon made significant strides this year in delivering and winning innovative training programs. While this did not result in higher revenues for the Period as compared to year 2018, the combination of contract wins and ongoing R&D efforts have created significant future growth potential and a return to profitability," said Chief Executive Officer Ami Vizer.
"Though the overall impact of the coronavirus on the company's business is hard to assess at the moment, the company continues to position itself to deliver improved financial performance over the long term," Vizer added.
Shares in SimiGon were down 6.2% lower at 6.1 pence on Tuesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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