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Starcom Loss Narrows In 2017 Amid Revenue Growth And Strong 2018 Start

8th Mar 2018 11:50

LONDON (Alliance News) - Wireless technology firm Starcom PLC said Thursday its 2017 loss narrowed after revenue expanded, and reported 2018 has begun "strongly".

In 2017, pretax loss narrowed to USD1.4 million from USD2.0 million the year prior. This was after revenue expanded 5.9% to USD5.4 million from USD5.1 million the year before.

Revenue performance was moderated, Starcom said, due to the delay in delivery of some 2017 orders in January and February 2018.

"2017 proved to be a turning point in the history of Starcom, with significant progress being made both in the development of our technology and the acceptance of that technology by some major companies and organisations", Starcom Chief Executive Officer Avi Hartmann said.

"Despite the unfortunate errors made in our announcement in January of our expected results for 2017 we have, most importantly, delivered improvements in both revenues and gross margins, as well as significantly reducing losses," Hartmann added.

In January, Starcom erroneously announced its expected pretax profit performance to be either breakeven or show a small loss. In February, Starcom corrected this by saying it expected a wider loss than originally forecast after accounting for share option costs, exchange rate differences and other overheads.

"2018 has begun strongly, with more visibility than normal at this time of year on future orders, and with a number of new projects under active discussion," Hartmann said. "Although the current year is at an early stage, the indications we have point to good growth in revenues and a continuing improvement in gross margins."

Shares in Starcom were 3.8% higher at 2.672 pence on Thursday.


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