Net loss for Zaptronix

Zaptronix, which has reported a net loss of R11.05 million for the year to 30 April, says it has subsequently reached break-even point, although its ongoing business is dependent on further contracts and other measures.

The board says it reduced its overheads during the year, and with a gradual increase in turnover from continuing operations Zaptronix has reached breakeven, although this was achieved only after the financial year.

Revenue for the year came to R2.24 million, 75.4% down on last year`s figure, although on a continuing operations basis it was up substantially from a previous R0.68 million.

A net loss of R10.02 million was a 56.6% improvement on the previous loss of R23.12 million. A headline loss of 4.5c a share compares with a year-earlier loss of 6.68c a share.

"The company has written down capitalised intellectual property to reflect a more realistic expectation, in line with the slowdown in the smart card and related industries," the board says.

"The losses for the year reflect the balance of the downsizing of the business and a large proportion of amortised costs."

Zaptronix is assessing several proposals from potential partners. It says these will be evaluated on the basis of ensuring maximum shareholder return.

The company fell on hard times after a project undertaken for Hitachi, which had a 27% stake in Zaptronix, hit snags as a result of problems at Hitachi`s Norwegian partner.

Already wounded, Zaptronix was further affected when another client, Invensys, underwent a restructuring and modified its contract.

"It should be noted that although a number of promising proposals are currently being assessed, a major shareholder, Hitachi, decided to sell its shares, once again reflecting Hitachi`s disinterest as a shareholder," the Zaptronix board says.

"The ongoing business remains dependent on the conclusion of further contracts, the sale of intellectual property or the recapitalisation of the business."