30th Sep 2014 11:31
LONDON (Alliance News) - Imaging and 3D products company DDD Group PLC Tuesday posted a widened loss for the half year to end-June, despite cutting costs, as the contraction of the 3D personal computer market hit revenue.
DDD posted a pretax loss of USD1.4 million, widened from USD1.1 million, as revenue fell to USD1.2 million from USD2.4 million, although this was partly offset by lower administrative expenses. Revenue was dragged down by the contraction of the 3D PC market, and as a result DDD opted to cut its headcount by 30% to counteract this decline.
The company said its high-margin original equipment manufacturer royalty revenues fell to USD1.1 million from USD2.2 million as a result of this downturn. During the first half of the year, only five licensees were shipping compared to nine a year before, and this also hit direct-consumer PC software sales.
Some 6 million 3D consumer products were shipped in the first half using DDD's TriDef 2D-to-3D conversion solution, mostly from the television market. It inked two new tablet deals for its TriDef 3D mobile software during the period, which it expects to begin shipping in the second half.
It launched its new mobile game Dimentia3D, and released its TriDef 3D mobile and Yabazam video streaming applications to the Google Inc Plat store.
DDD said that 2014 represents "a year of expansion" for the business as it prepares to enter new growth markets.
"For the remainder of 2014, the group will focus on commercializing the new 2D technologies with existing and new licensees, concluding licensing discussions with prospective licensees in conjunction with the patent advisor and continuing to support existing licensees in the 3D TV and tablet markets," said Chief Executive Chris Yewdall in a statement.
Shares in DDD were trading down 20% at 3.80 pence Tuesday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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