 shares plunged over 30 percent on Monday, following a disappointing trading update from the wireless technology specialist.){kind=link}
Starcom Plc (LON:STAR) shares plunged over 30 percent on Monday, following a disappointing trading update from the wireless technology specialist.
The company warned that losses were expected to total around $1.5 million, a slight improvement on last year’s $1.76 million dent to profits. The disappointing performance was attributed to delivery delays by Mul-T-Lok.
The company added however that an order of $200,000, which had been initially scheduled for 2016 delivery, is to be shipped and completed in the upcoming financial year.
In addition, the update stipulated that the board expects the Company to report a pre-tax loss of approximately $1.5 million. The official report is set to be released on the 31st March, in the following month.
Alongside the losses, the update also announced that a shortening of the amortisation period which will take into account research and development costs reflective of the speed of technology changes. Starcom also warned that turnover for 2016 will be lower than anticipated at around $5.2 million, more or less unchanged from 2015.
Nevertheless, the group remained positive that its 2017 results will show an improvement year-on-year following the resolving of aforementioned delivery delay issues as well as the “good level” of new customer interest it has found.
Starcom plc was founded in 2004, and specialises in the development of wireless solutions for the remote tracking, monitoring of individuals or assets. Its products include various monitoring Apps as well as container and vehicle tracking devices. Most recently, the company introduced a tracking app named ‘Zeppos’ which “allows you to turn any mobile device into an end unit, which you can easily and conveniently track through Starcom Online and Olympia tracking.”
Shares have fallen dramatically following the announcement, losing almost a third of the company’s value in early morning Mondaytrading. Shares in the company are currently down 33.33 percent as of 11.29AM (GMT).