3rd Sep 2018 09:42
LONDON (Alliance News) - Scientific devices maker Microsaic Systems PLC said Monday its interim loss deepened amid higher costs despite revenue doubling as it continues to invest in growing the business using recently-raised funds.
For the six months ended June, pretax loss widened to GBP1.50 million from GBP1.47 million the year prior. This was despite revenue doubling to GBP252,904 from GBP128,884 a year before.
The loss widened due to a 9.1% rise in operating expenses to GBP1.2 million from GBP1.1 million the year prior. This was partially offset by a fall in research & development expenses, down 4.6% to GBP451,169 from GBP472,683 a year before.
Microsaic expects total operating expenses - including R&D - to continue to be above last year. This is in line with its plan as it continues to invest in research, development and sales and marketing activities.
The firm - which makes mass spectroscopy instruments - expects sales momentum built up in the first half of the year to continue into the remainder of the year. This is as it commercialises the relationships developed with its new original equipment manufacturer and distributors signed in the first half.
During this period, Microsaic signed new OEM deals with Knauer Wissenschaftliche Gerate GmbH and Unimicro Technologies Inc and well as distribution contracts with partners in the UK, Malaysia, Taiwan and central Europe.
In early June, Microsaic raised GBP5.5 million through a discounted placing of 275.0 million shares at 2.00 pence each.
Shares in Microsaic were 9.7% lower at 1.40 pence on Monday.
Cash stood at GBP7.0 million, up from GBP4.1 million the year prior. Microsaic does not pay a dividend.
"I am very pleased with the progress made in the first half of the year, including revenues well ahead of the same period last year and with instrument orders in the first half of the year equal to the total number of orders for the full year 2017," Microsaic Chief Executive Officer Glenn Tracey said. "We are encouraged by this growth which is supported by the growing base of OEM partnerships and distribution agreements we are cultivating."
"In addition to increased orders in our traditional markets, we have made good progress with our bioprocessing partner on the integration phase of the project," Tracey added.
"The board would like to thank its shareholders and advisers for ensuring the recent fundraising was a success," Tracey continued. "With funds available the company is now in a stronger position to progress and implement its strategy and plans."
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