I bet, the CEO of Nipson Digit Print needed to print off quite a few copies of 3Q financial results to double-triple check how poor the company is doing for the past time. Hopefully, he left some papers for the customers as well.The company's stock were on the back foot, slipping 1.13p more to 2.125p as traders continued to react to yesterday's news of sharply higher nine-month losses and a warning that full-year results will be materially below the company's initial hopes.
Revenue for the nine months to 30 September 2007 was £18.9m, a decrease of 20.7% over the same period last year. The decrease occurred in new equipment sales, while recurring revenues grew slowly.
Equipment sales, at £4.9m for the nine months, showed a decrease of 51.5% over the comparative period which benefited from a number of large sales. Equipment into North America constituted the largest part of the decrease, dropping by 73.6% compared to the same period last year.
Gross profit for the nine months to 30 September 2007 was £2.5m, 61.2% lower than the comparative period last year mainly due to the lower equipment sales, but also costs associated with introducing the new generation of technology into the market.
The operating result for the nine months to 30 September 2007 was a loss of £3.1m against a profit of £0.3m for the corresponding period in 2006. The loss before tax was £4.0m (2006: £(0.2)m). Operating costs at £5.6m (2006: £6.1m)
What awaits this company? Probably, more problems as the company continue to perform negatively. However, with its too optimist motto 'Print Beyond Limits,' the company surely need make a revolution in its business model or perhaps improve quality of its printing solutions.
Reference
www.nipson.com
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