DigiCore points to earnings decline

JSE listed telematics technology group, DigiCore Holdings, says it expects its headline earnings per share for the six months ended December 2012 will be between 51% to 59% lower than in 2011 at 4.1 cents and 4.9 cents.

Attributable earnings will be between 4.5 cents and 5.3 cents per share or 47% to 55% lower than the comparative six month period in 2011, it said.

DigiCore pointed to a host of factors, including:

  • Reduced gross margins on sale of units to our major partners;
  • The Cell Incentive Bonus coming to an end;
  • An increase in operating expenses during the period under review;
  • An increase in depreciation and amortization charges;
  • An increase in financing charges to assist in the funding of the rental units.

“On a positive note, we were able to increase our turnover, systems shipped and installed base, further entrenching the future annuity revenue streams. All these factors will have a positive benefit to the business in future years.

“We are also streamlining our operations and closing down loss making entities, thus consolidating our operations,” DigiCore said.

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DigiCore points to earnings decline