31st Mar 2014 10:49
LONDON (Alliance News) - Toumaz Ltd Monday posted a narrowed pretax loss for 2013 as it consolidated its acquisition of Frontier Silicon Ltd and announced targets to be cash flow positive in 2015, and see revenues increased fivefold by 2017.
The low power wireless semiconductor company posted a pretax loss of GBP13.3 million, narrowed from a pretax loss of GBP21.6 million in 2012, as revenue rose to GBP21.9 million from GBP8.8 million, boosted by the consolidation of acquisition Frontier Silicon and it had posted a GBP10.2 million impairment charge in 2012 as some intellectual property reached end of life.
Revenue growth was boosted by a strong performance from the company's Digital Audio division, although it notes that an increase in Digital Audio volumes had been offset by lower average prices as existing chip sets approached end of life.
Gross profit margin declined to 44.4% from 45.6% due to the maturing chip sets and the company shifted its product mix.
The company invested GBP9.1 million in research and development in 2013, up from GBP6.4 million in the previous year.
Toumaz said that it was trading in line with expectations in 2014, as revenue was underpinned by strong recurring revenues in the Digital Radio Sector. It expects new chip development to lower costs in its Digital Radio sector, to offset some price erosion. Connected Audio revenues are expected to show strong growth as the company introduces a next generation chip.
Shares in Toumaz were trading down 3.9% at 3.12 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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