Network Technology - Interim Results
January 31 2000 - 12:38PM
UK Regulatory
RNS Number:7448E
Network Technology PLC
31 January 2000
NETWORK TECHNOLOGY PLC
Chairman's Statement
Results
I am pleased to report that the measures we have taken are taking
effect in line with our expectations as I indicated in my previous
statement. The unaudited net loss for the half year was
significantly reduced from #2.5 million in the half year ended 31st
March 1999, to #1.45 million in the half year ended 30th September
1999. The trading loss for the quarter ended 31st December 1999 was
further reduced to approximately #80,000. During the period since
30th September 1999, four of our group companies were put into
administration, but since that time three have reached an agreement
with their creditors and therefore have come out of administration
and are now trading profitably.
Dividend
In the light of the group's performance during the period, directors
do not recommend the payment of an interim dividend. A decision on a
final dividend will be announced once the final results are known.
Review
Since taking over as Executive Chairman, I together with Hanne
Bollmann who has taken on responsibility for the finances, have
achieved a reduction in the number of group employees from 300 to
approximately 148. A significant reduction in trading losses has
also been achieved and we are hopeful of the group being cash
positive during the fourth quarter of the year. The restructuring of
our manufacturing operation, to reflect the output required for our
current level of business, has been completed in the UK and will be
completed in the USA by the end of March 2000.
The Data Storage Server is now being marketed and is being well
received in the USA, Germany and the UK, and as a result it is hoped
that this will allow the group to revert to profitability, in the
medium term. It is expected that the marketing programme will gain
momentum during the first half of the year 2000 as we are receiving
positive interest from some of our OEM customers and our distribution
partners for our Ringdale brand.
As previously reported, we have production facilities in place to
satisfy demand, although we shall require future funds to bolster our
marketing programme, and we are currently exploring ways by which
this may be achieved.
We have also found a niche for our semiconductor design house AB-
Semicon in providing services to the IC Fabrication Industry to fill
the bottleneck of design, layout and simulation expertise. We are
working on a number of possible contracts, which we believe can yield
significant profits in the future. In addition, our line of unique 8-
bit microprocessor and microcontroller devices are being designed
into high volume products indicating the possibility of AB-Semicon
playing a more prominent role in the generation of group profits in
the future.
Klaus Bollmann
Chairman
Consolidated Profit and Loss Account (unaudited)
6 months 6 months
30.09.99 30.09.98
#000 #000
Turnover 4,821 7,783
Operating costs (6,199) (9,105)
----------- -----------
Operating (loss) (1,378) (1,322)
Interest (72) 62
----------- -----------
Loss before taxation (1,450) (1,260)
Taxation -- 77
----------- -----------
Profit (loss) for the period (1,450) (1,183)
Dividends - equity -- (199)
----------- -----------
Retained (loss) for the period (1,450) (1,382)
----------- -----------
Earnings per share (loss) (4.00)p (3.30)p
----------- -----------
The interim report will be posted to shareholders as soon as possible
and will be available from the Company's registered office.
END
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