25th Sep 2014 09:51
LONDON (Alliance News) - Toumaz Ltd Thursday said it expects to trade broadly in line with its expectations for the remainder of the year, as it posted a slightly narrowed pretax loss for the half-year from the year before.
The low power wireless semiconductor company posted a pretax loss of GBP7.4 million for the six months to the end of June, slightly narrowed from a loss of GBP7.5 million a year before, as higher cost of sales and administrative expenses offset a rise in revenue to GBP10.8 million from GBP8.2 million.
Revenue growth was primarily driven by the company's Digital Radio segment as the German and Scandinavian markets performed well, said the company. Connected Audio revenues were up 18% to GBP2.8 million from GBP2.4 million, as customers took up its services for Spotify Connect and Internet Radio.
Sales and administrative expenses rose due to the launch of its SensiumVitals wearable monitor.This led to revenues of GBP500,000 in the half-year. Toumaz started a pilot of the product with the UK National Health Service in September, and the system is also being evaluated in hospitals in Australia and Portugal.
The company has established a sales and distribution network in 19 territories, and said that it expects to evaluate the product in further territories before the end of 2014.
Toumaz expects to ship around 4.3 million units in its consumer audio segment in the year, up from 3.5 million units a year before.
"As both the Healthcare and Digital Radio businesses build revenue momentum and Toumaz continues to invest in Connected Audio, the Board believes that the prospects for strong medium term growth across the Group are increasingly encouraging," the company said in a statement.
Shares in Toumaz were trading down 6.9% at 5.70 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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