Addvalue narrows Q3 net loss to S$580,000 on cost cuts

Addvalue Technologies narrowed its third-quarter net loss to US$580,000 from US$1.2 million a year earlier as it cut its expenses while raising sales, the satellite communications company announced late Thursday.

Loss per share narrowed to 0.13 US cent from 0.20 US cent the year before. Addvalue shares closed at 2.5 Singapore cents on Thursday before its results were announced. No dividends were declared.

For the nine months ended Dec 31, 2018, net loss narrowed to US$2.4 million, compared with US$3.4 million the year before.

Third-quarter revenue rose 64 per cent to US$986,000 from US$599,000 the year before. Addvalue cited improved sales of its L-band terminals, partial fulfilment of the order book for its new software-defined radio devices and the completion of an inter-satellite data relay system (IDRS) feasibility study for a valued partner.

The improved bottom line also found support from lower expenses. Other operating expenses in the third quarter halved to US$282,000 due to reduced amortisation of intangible assets, which was brought about as a result of impairments made in previous years, the company said.

Cost-tightening measures lowered selling and distribution expenses by 29.8 per cent to US$151,000, while reduced headcount and salary adjustments took administrative expenses down 2.2 per cent to US$571,000. This was despite an increase in professional fees incurred for corporate exercises.

Looking ahead, the group is "cautiously optimistic" about its performance for the foreseeable future and expects its main growth pillars, particularly regarding the sales of its SDR modules, to continue to yield fruitful results for the next 12 months.