Johannesburg, 08 Aug 2005
Idion Technology Holdings` share closed 2c or 1.6% lower on Friday after the company warned that it expected to report a headline loss for the six months to June.
Idion, whose only operation is the wholly owned US-headquartered Vision Solutions, says it expects to report a headline loss of between one US cent and 1.2 US cents a share for the period.
This compares with headline earnings of 0.3 US cents a share for the same period last year.
A basic loss of between one US cent and 1.2 US cents compares with a previous loss of 0.7 US cents.
The results are to be published on 24 August.
"The group`s first-half results reflect the historical revenue seasonality where the majority of the group`s revenue is recorded during the second half of the year," Idion says in its update to shareholders.
"The decline in earnings from a comparative perspective is a direct result of several planned strategic investment initiatives taken during the first half of the year, as previously communicated to the market in the company`s annual report released during March 2005.
"These investment initiatives were primarily focused on increased sales and marketing and accelerated new product development activities."
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