Addvalue Technologies reported on Friday that its fiscal first quarter net loss narrowed to US$862,000, from a loss of US$1.07 million in the year-earlier quarter, amid an increase in revenue and on cost-containment measures.
Revenue for the quarter ended 30 June rose 33.4 percent on-year to US$1.131 million on the maiden delivery of its new proprietary software defined radio communication modules, or SDR modules, to a Singapore government agency, it said in a filing to SGX after the market close on Friday.
It said that its selling and distribution expenses fell 8.8 percent on-year in the quarter to US$219,000, mainly on curtailed marketing expenses, despite an increase in sales staff to promote its new services. Administrative expenses fell by 13.4 percent on-year in the quarter to US$635,000, it said.
The company was upbeat on the results.
“The group outperformed its performance, both in terms of revenue and the bottom-line, in 1Q2019 compared to 1Q2018,” it said in the filing, adding that it expected a “watershed” fiscal year, with accelerated revenue growth projected for both its inter-satellite data relay system (IDRS) and non-IDRS businesses starting from this year. It said it expected this fiscal year’s performance would “significantly outdo” last year’s.
Addvalue said that its design engineering segment was at “various late stages of discussion” for several high-value design-cum-supply programs which could yield immediate design revenue and open a path to future supply revenue.
“The group’s deep capabilities in communication technologies and complex product development have given it a competitive edge to win high value sophisticated development projects from several governments and enterprises,” it said.
In its fishing fleet segment, Addvalue said its iFleetONE terminal and proprietary Vessel Management System, or VMS, were type approved by the National Marine Fisheries Service Office of Law Enforcement for fishery regulatory activities in some protected areas of the United States’ West Coast. That means the VMS was set to be installed on fishing vessels that need to operate in those protected areas, starting within the current financial year, it said.
Addvalue expected this would spur steady sales growth of the terminals and recurring revenue from the VMS and air-time subscriptions, it said.
In the IDRS business, it noted that earlier this month, it announced a partnership with Open Cosmos to provide the IDRS terminal as an add-on function to Open Cosmos’ satellites for customers who need near real-time communications.