UPDATE 2-Optos posts H1 pretax loss from cont ops, cuts jobs
* Sees return to increased growth in 2011 and beyond
* Reiterates FY revenue view of $90 mln
* Says cut 60 jobs in March
* H1 rev $47.8 mln in line with its view
* Shares rise 3.5 pct (Adds comments from CEO, analyst, share movement)
By Austin Lobo
BANGALORE, May 20 (Reuters) - Optos Plc (OPTS.L), a retinal imaging technology company, slipped to a first-half pretax loss from continuing operations but said it expected to return to increased growth in 2011 and beyond.
The Scottish group, whose equipment is used to examine the retina, reported a pretax loss from continuing operations for the six months to March 31 of $4.9 million, compared with a profit of $1.8 million a year earlier.
The loss was mainly due to exceptional charges including costs related to job cuts and impairment to research and development assets, Chief Financial Officer Allan Watson said.
Optos cut 60 jobs, or 20 percent of its workforce, in March in a restructuring to save $5 million to $10 million annually, Chief Executive Roy Davis said.
"Though we are always looking for ways to improve efficiency, there are no plans for another major restructuring," Davis told Reuters by phone.
Revenue for the six months was $47.8 million, against $48.9 million a year earlier, which the company said was in line with its expectations.
"The fall reflects the decreased emphasis on capital sales," Davis said.
He reiterated that Optos was on track to post a turnover of $90 million in the year to September.
He said the company's new low-cost product in the pipeline will help its growth and increase market penetration in the United States, which accounts for 85 percent of its turnover.
Davis said the low-cost product would also be suitable for markets like China and India.
Brokerage Panmure Gordon maintained its "sell" rating on the stock with a 31 pence price target.
"Good progress is being made in terms of implementing the restructuring programme but a tough operating environment persists and will limit the magnitude of any progress made," it said in a note.
Optos shares were up 3.5 percent at 45 pence at 1210 GMT on the London Stock Exchange. (Editing by Gopakumar Warrier)
- Tweet this
- Share this
- Digg this