24th Sep 2018 11:15
LONDON (Alliance News) - SimiGon Ltd on Monday reported a widened interim loss, despite increasing revenue, after taking a provision for a delayed contract payment.
In the six months ended June, the 3D simulation training services provider widened its pretax loss to USD648,000 from USD445,000.
The company's revenue in the first half increased 9.1% to USD2.4 million from USD2.2 million.
SimiGon's total operating expenses increased 14% to USD2.5 million from USD2.2 million, with general & administrative costs nearly doubling to USD964,000 from USD527,000.
The large increase in administrative costs was mainly due to a doubtful debt provision of USD450,000 for a delay in payment from a particular, unnamed customer in the civilian training market.
The company said the increased cost base is "part of a strategic decision" by the company to "ensure it continues to be on the front foot with respect to capitalizing on the many market opportunities available."
SimiGon said it is confident its "technology, multiple recurring revenue streams and new market opportunities" will lead to "profitability and growth for many years to come".
The company expects, based on contracted backlog orders, its revenue for the full year to be about USD5 million. In 2017, SimiGon reported revenue of USD4.3 million.
Chief Executive Officer Ami Vizer said: "We are pleased to report increased revenues and, excluding the one-time provision for doubtful debts provision, the financial results for the period show an improvement in losses as compared to the related period in 2017.
"We continued to execute upon our strategy for the underlying business, deliver project milestones for long term contracts and build our strategic position as a technology partner to our customers. Looking at the number of the contracts we are currently working on, we are confident in our upside potential."
Shares in SimiGon were untraded Monday, last closing at 14.50 pence each.
Related Shares:
SIM.L