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Starcom manages to narrow losses in 2017
Wireless tracking, monitoring and protection technology specialist Starcom announced its final results for the year ended 31 December on Thursday, reporting a 6% increase in revenue to $5.4m.
The AIM-traded firm said its gross profits significantly increased through the year, rising 46% to $2.1m, while its gross margin improved to 38.2% from 27.7% in 2016.
It made an EBITDA loss, excluding its share options provision, of $0.19m, narrowing from $0.78m after also adjusting for inventory write down.
Starcom's net loss after tax reduced to $1.3m from $2.0m in the prior year, including a charge of $0.2m for exchange rate differences - a larger charge than the $0.06m reported 12 months earlier.
A total of three major contracts were signed in the second half, the board reported, with some revenue already recognised in 2017's numbers.
Since the year ended, Starcom said revenues in first quarter of 2018 were expected to be about $1m, rising from $0.77m in the same period of 2016.
"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," said CEO Avi Hartmann.
"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 said 2018 began "strongly", with more visibility than normal for the time of year on future orders, and with a number of new projects said to be under active discussion.
"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."