Listed electronics group, Altron, is selling its Altech Node video-on-demand product after poor uptake from retail customers.<\/p>\n
The group issued a trading statement late on Wednesday (22 July) advising shareholders that it expects basic earnings to be 160% lower for the financial half year.<\/p>\n
Basic earnings per share are expected to be a loss of at least 35 cents, versus the profit of 58 cents from the previous corresponding period.<\/p>\n
Headline earnings are expected to be more than 150% lower (a loss of 36 cents versus a profit of 72 cents).<\/p>\n
The group said that its financial performance has been negatively impacted by difficult trading conditions and reduced demand for its services.<\/p>\n
Notably, the company said that uptake of its Altech Node by retail customers has been poor, and it is in discussions with “a third party” to acquire that particular business.<\/p>\n
“It is anticipated that Altech Node will be disposed of in the short-term,” Altron said.<\/p>\n
In May 2015, Altron announced its annual results for the year ended 28 February 2015, in which it reported an annual loss of R60 million.<\/p>\n
This included an operating loss from continued operations of R26 million, and a loss from discontinued operations of R34 million, Altron reported.<\/p>\n
Even back then, the writing was on the wall for the Node, with Altron reporting that sales for the product fell well below expectations.<\/p>\n
“Although we acknowledge it is a start-up business which still has the potential gain traction, initial sales of the Altech Node to the retail market were below expectation.\u201d<\/p>\n
“Altron TMT is well advanced in exploring alternative opportunities and routes to market for this product,\u201d it said at the time.<\/p>\n
The group’s other segments, including Altech Autopage – which is in the process of offloading its GSM subscriber base – Altech UEC and Powertech Transformers, well all suffering strained performance.<\/p>\n
Altron\u2019s interim financial results for the half-year ending 31 August 2015 are expected to be\u00a0announced on or about 7 October 2015.<\/p>\n
Altron restructure on the cards after R60-million loss<\/a><\/strong><\/p>\n Altron close to disposal of Altech Autopage GSM customer base<\/a><\/strong><\/p>\n