Embattled Micrologix has negotiated a compromise offer with creditors, which it says will place it in a solvent position for future trading.
A rescue operation was initiated at the company after a change of control was negotiated in October last year.
Micrologix was acquired by Gandalf Trust, which immediately set about negotiating a compromise offer to creditors and restructuring the company.
Trading was ceased temporarily and head office costs were eliminated.
The latest financial results show a headline loss of 4.3c per share for the year to 31 December 2000. This compares with a headline loss of 12.8c a share for the 15 months to 31 December 1999.
Revenue of R1.55 million compares with R6.39 million revenue for the 15-month period in 1999, while an operating loss of R6.5 million before interest compares with an earlier loss of R18.7 million.
"Following the change in control, the new directors consider that there is little inherent value in the intellectual property and investments held by the company and have decided to write down the carrying value to nil," the company says.
A R22 million write-down under abnormal items resulted in an attributable loss of R28.52 million, an improvement from the earlier R70.3 million loss.
On the balance sheet, current liabilities of R6.18 million outweigh the current assets of R437 000.
A net tangible asset value of -3.4c a share was recorded at the end of the period.
The company says the results reflect those of the MedTel division only. De facto control of the Penta Medical Systems division was lost in 1999.
It adds that the compromise offer, reached with creditors on 6 March, places the company in a solvent position.
"The company`s directors are in the process of evaluating the company`s remaining assets and are considering, inter alia, restructuring the balance sheet through a reduction of share capital."
The Micrologix share was unchanged at 2c early this afternoon.
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