Systems integration specialist Zaptronix incurred a headline loss of 0.97c per share for the six months to 31 October, compared with earnings of 4.1c a year earlier.
CE John Heath says most of the period was occupied by two separate deals with Hitachi Europe. The first deal involved the acquisition by Hitachi of a 27% stake in Zaptronix.
"The second deal, signed on 10 April 2000 and relating to the KidCard project, envisaged that 250 000 units be delivered to Hitachi by mid-November 2000.
"Hitachi was unable to place an order during the review period, due to problems with its Norwegian partner. Undertakings that were made regarding free production capacity have resulted in significantly reduced turnover and profitability in our Systems division."
He adds that it is unlikely that any benefits will result from the project in the current financial year.
A R2.15 million net operating loss before interest was incurred on revenue of R10.97 million. This compares with operating income of R5.18 million a year earlier, on revenue of R13.84 million.
"The basis of accounting for GIS Marketing International Limited was changed from subsidiary to associate, resulting in apparently reduced turnover figures," Heath says.
A net loss of R1.4 million after tax was down from income of R4.37 million, while an attributable loss of R1.36 million compares with earnings of R3.94 million.
The group had cash and cash equivalents of R19.15 million at the end of the period and Heath says the board is confident that "the recent earnings setback will be negated during the next financial year".
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