30th Sep 2014 11:27
LONDON (Alliance News) - PeerTV PLC Tuesday posted a widened pretax loss in the half-year to the end of June, as revenue was hit by delayed orders from its main customer Kartina GmbH, amongst other factors.
The technology company posted a pretax loss of USD2.7 million, widened from USD1.6 million a year before, as revenue fell to USD793,000 from USD1.3 million. This was as a result of Kartina's decision to delay the upgrading of its network to newer technology.
Working capital restrains also forced the company's Digitek business to focus on assembly only project, which led to the loss of at least one major customer, said the company. Additionally, a joint venture with a main component supplier was stalled due to the unexpected death of the chief executive and owner of the joint venture components business.
In May Digitek won an order for USD6.3 million to supply printed circuit boards to an Israeli company; while it has delivered a first shipment, necessary approvals to start the mass production stage have not yet been received. PeerTV said it cannot forecast with any certainty as to when mass production will begin.
Following the period-end the company secured a conditional order with Kartina. Digitek has seen sales up in the third quarter, however, short of expectations as the hostilities in Israel disrupted production.
After the period-end the company approved a reorganisation of its share capital, raised GBP210,000 through a share placing, and signed an agreement for a GBP200,000 revolving line of credit with CSS Alpha (BVI) Ltd.
PeerTV said it will continue to require investment to provide it with the working capital necessary to expand both of its business units.
Shares in PeerTV were untraded Tuesday, quoted at 0.197 pence per share.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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