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Addvalue Tech FY2019 net loss narrows to US$3.74m, profitability expected in FY2020
ADDVALUE Technologies' net loss attributable to shareholders narrowed to US$3.74 million for the year ended March 31, 2019, compared with the previous year's loss of US$12.76 million, the communications technology products developer reported on Thursday night.
Revenue edged down 1.7 per cent to US$4 million, but gross profit improved 41.3 per cent to US$1.87 million.
Loss per share was 0.21 US cents, compared with 0.73 US cents the year before.
Addvalue said it expects "breakthrough progress" in turning around its performance for the current financial year ending March 31, 2020.
It noted that as announced on Feb 20, it has secured a design contract with US-based aviation firm Avionica to jointly develop a new generation of Swift Broadband terminals to support demands for real-time flight data.
Its in-house developed proprietary software defined radio (SDR) module customised for a Singapore government agent has also attracted purchase contracts contributing over US$1 million in sales in FY2019, the majority of which was reflected in the fourth quarter. Addvalue said it has "already received new inquiries for a much bigger requirement", and expects this SDR module "to be a star revenue generator over the next 12 months".
With a prevailing confirmed order book of about US$4.6 million -- more than the turnover achieved in each of the last two financial years -- and an indicative order book of at least US$15 million, Addvalue said that barring any unforeseen circumstance, it is "cautiously optimistic and expects to achieve profitability in FY2020, particularly in the second half of FY2020".
Addvalue shares closed unchanged at 2.2 Singapore cents on Thursday before the results.