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Global Invacom issues profit warning
MAINBOARD-LISTED Global Invacom Group issued a profit warning for the financial year ending Dec 31, 2016, before market opened on Thursday.
The satellite broadcast solutions maker said a preliminary review and assessment of the projected financial statements reflect a full-year net loss on one-off shutdown expenses of about US$3 million for the closure and cessation of Radiance Electronics Shenzhen Co Ltd.
These one-off shutdown expenses stem from the consolidation of the group's manufacturing operations in China announced on Nov 8, 2016.
The group expects the consolidation to translate into improved gross margins and operational cost efficiencies in FY2017 and beyond. It plans to announce its unaudited results for FY2016 in February 2017.