4th Nov 2013 10:26
LONDON (Alliance News) - Shares in Biome Technologies tumbled 12% Monday after it warned that subdued demand in Asia for optical fibre manufacturing furnaces continued to hurt revenues in its RF Technologies Division, although it said that the shortfall in anticipated revenues had been mostly offset by cost reductions.
Biome Technologies comprises of two divisions. Its bioplastics division supplies plastics derived from renewable sources such as vegetable oils, and its RF Technologies division primarily designs and builds radio frequency systems.
It posted revenues for the third quarter ended September 30 of GBP600,000, up from GBP500,000 in the previous quarter. It did not provide comparative data for the previous year.
The company produces furnaces to manufacture optical fibre, flexible fibres that are used to transmit data. Despite the subdued demand in Asia, other markets were progressing as expected for the furnaces, Biome said. Revenues for the third quarter in the RF division were GBP200,000, halved from GBP400,000 in the previous quarter.
The decline offset increases in the bioplastics division, where revenues for the quarter were GBP400,000, up from GBP100,000 in the previous quarter, as sales were boosted by the launch of a new product with a US customer which it didn't name.
Biome said that its overall performance remained in line with its expectations, and that it continued to progress in its strategy to commercialise its intellectual property in the bioplastics market.
Shares in Biome were trading down 12% at 158.87 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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