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Struggling S i2i widens Q4 losses; CEO to take S$1 annual salary
S i2i, a regional info-communication product distributor and service provider, on Friday said it has widened net losses to US$37.3 million for its fourth quarter ended Dec 31, 2014. This compared to net losses of US$23.2 million a year ago.
Revenue also dipped 5 per cent to US$94.5 million.
The company said: "Distribution of operator products and services in Indonesia grew in local currency terms during the quarter... However, depreciation of approximately 5 per cent in Indonesian rupiah versus the US dollar led to translation differences.
"Demand and margins of mobile devices and products in our major market of Indonesia had also been affected due to severe competitive pressures, and sharp shifts in consumption patterns and distribution channels in our key markets.
"Demand and margin in ICT (information and communications technology) distribution and managed services continues to be under pressure due to increased competition and reduced capital expenditure by industries."
The company is changing the distribution channel of its mobile products in Indonesia - from high-cost retail shops and retail partners to via online websites. It will also streamline its retail business by selectively retaining profitable retail shops, and discontinuing those which are not lucrative. Staff strength in Indonesia will also be scaled down.
"The company anticipates that this scaling down will incur a one-time restructuring cost, which is not expected to have a material financial impact on the company.
"The company believes that this restructuring will allow the group to operate at a leaner cost structure... in addition, such a model will benefit consumers by allowing the company to price its mobile products more competitively while keeping the company's margins intact," it said.
CEO Maneesh Tripathi has also voluntarily offered to convert his basic annual salary to S$1 in the light of the continuing losses for the past three years, and to link his variable pay to the profitability of the company.
Meanwhile, the chief financial officer has left his position to relocate to Dubai to pursue other career opportunities.