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.