26th Feb 2014 11:43
LONDON (Alliance News) - Electrical Geodesics Inc Wednesday swung into a pretax loss as revenue was hit by declines in North America, and profit was further hampered by higher administrative costs in 2013.
Electrical Geodesics posted a pretax loss of USD3.0 million from a pretax profit of USD67,000, hit by increased administrative, sales, marketing and support and other expenses. Administrative expenses rose to USD3.8 million from USD2.2 million in the previous year.
Additionally, the company saw income from research grants of USD757, down from USD1.45 million in the previous year.
Revenue declined to USD11.6 million from USD12.5 million in the previous year, primarily hit by declines in North America as many government and research funded markets were hampered by cutbacks, and there were delays in obtaining clearance for its GES 400 product with the Food and Drug Administration.
GES 400 is the latest platform in its series of products for EEG monitoring; a method of recording electrical activity along the scalp.
Electrical Geodesics said it plans to continue the roll out of its GES 400 and NS5 software throughout 2014 whilst maintaining a tight cost control.
"We believe that our technology has a leading position in monitoring brain activity and that EGI can and will deliver competitive solutions in core areas of EEG such as sleep studies, long-term monitoring of epilepsy and the planning of neurosurgery," said Chairman Don Tucker in a statement.
Electrical Geodesics floated on AIM in April and raised GBP8.0 million in new capital.
Shares in Electrical Geodesics were trading down 3.3% at 134.00 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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