SINGAPORE (May 31): Addvalue Technologies sunk deeper into a net loss of US$11.11 million ($14.9 million) from a net loss of US$3.47 million last year.
FY18 also marked the fourth straight year of losses for the satellite communications company which was last profitable in FY14.
Under listing rules of the Singapore Exchange, firms may be placed on the watch-list after three straight years of losses and having a market cap below $40 million.
At its last traded price of 4 cents on May 24, Addvalue had a market cap of about $70 million.
For FY18 ended March, Addvalue says revenue also fell 62.3% to US$4.09 million, dragged down by continued depressed economic conditions in the merchant shipping and energy sectors where most of its customers are found; the phasing out of certain products which have reached the end of their product lifecycle as well as the gradual shifting in market demand for narrowband satellite communications (satcom) products to broadband satcom products with more data-centric features.
In addition, other operating expenses widened by US$5.5 million to US$8.4 million in FY18, mainly due to impairments made during the year.
No dividend has been declared for FY18, unchanged from the previous year.
Looking ahead, Addvalue says it is in discussions with various customers on several projects amounting to US$10 million for delivery by March 31, 2019.
Nonetheless, the group expects to "significantly outperform" next year, in part due to the transformation programme the group has embarked on over the part two years.
Addvalue is currently undertaking a distribution-in-specie exercise as part of the spinoff of subsidiary Addvalue Solutions (AVS) for a listing on the Catalist board.
Shares in Addvalue were halted in the morning of May 24 in anticipation of an announcement of a Inter-Satellite Data Relay System (IDRS) terminal supply contract with a global satellite service company.
However, Addvalue says the signing of the agreement was delayed to include proposed amendments but the company is “cautiously optimistic" that the deal will be signed in the next few days.
Addvalue has requested for the trading halt to be lifted before the start of trading this morning.
