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(Sharecast News) - Technology solutions provider Nexteq posted a mixed set of interim results on Wednesday, with lower revenue and profitability reflecting market softness and changes in customer demand.
Nexteq said group revenue had fallen 16% year-on-year to $40.7m in the six months ended 30 June, with Quixant revenue down 13% and Densitron revenue dropping 20%, with the declines attributed to a return to traditional H2 revenue weighting and a shift in product mix. Gross margins narrowed by 420 basis points to 33.1%, driven by lower-margin sales in its Quixant division.
The AIM-listed firm said adjusted underlying earnings had dropped 67% to $1.9m, while adjusted pre-tax profits fell 82% to $900,000. Diluted earnings per share also declined 82%, dropping to USD 1.04cents.
Net cash from operating activities decreased 59% to $4.1m, though Nexteq highlighted that it had maintained a strong cash position of $28.1m.
Despite the H1 earnings decline, Nexteq said order intake was significantly ahead of last year, with multi-year deals secured across gaming and broadcast markets. New IP-based revenue exceeded $1m, led by ProDeck and Tactila solutions.
As a result, Nexteq reiterated its full-year guidance and said it was confident of being able to deliver the first stage of its strategic plan.
As of 0830 BST, Nexteq shares were down 0.96% at 78.24p.
Reporting by Iain Gilbert at Sharecast.com
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