17th Feb 2021 10:14
(Alliance News) - Transense Technologies PLC on Wednesday reported a narrowed loss in the first half of its financial year amid increased revenue following business changes in June last year.
Transense shares climbed 18% at 64.40 pence each on Wednesday morning in London.
The Bicester, England-based specialist sensor systems developer for vehicles posted a pretax loss for the six months to December 31 of GBP53,000, narrowing from GBP570,000 a year prior.
Revenue increased to GBP895,000 from GBP271,000 a year before.
Chair Nigel Rogers said: "These results reflect the transformational change in the business since the transactions completed last June, moving iTrack from an operational business into a licence model last June. We have every confidence that iTrack will continue to achieve increased market penetration, and deliver royalty income at or above our current expectations."
Royalty income generated by iTrack technology amounted to GBP370,000, which compares to the subscription income generated last year of GBP660,000.
In June, the company granted an exclusive worldwide licence to newly-formed Bridgestone Corp subsidiary ATMS Technology Ltd. Under the licence, ATMS will offer Bridgestone customers worldwide with tyre monitoring systems for all off-the-road vehicles based upon iTrack technology.
Transense now receives quarterly royalty payments based on the number and classification of vehicles upon which the iTrack technology is used over 10 years.
"The commercial prospects for our SAW technology have been revitalised after strengthening the management team, and enlisting the support of key opinion leaders through the SAWCAP initiative. Whilst it may take some time to determine the true value potential of this technology, we are encouraged by the early progress that is being made. In addition, the Translogik probe range continues to gain traction and is showing further potential for healthy revenue growth," Rogers said.
SAW refers to surface acoustic wave sensors, which measure torque, strain, pressure and temperature. Translogik probes measure variables in tyres.
Going forward, Rogers said the outlook is positive, with "prospects for the company and its shareholders are more favourable than at any time in the company's history".
By Greg Roxburgh; [email protected]
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