Financial Key Data
The Group’s objective over the medium term is to achieve strong revenue growth whilst maintaining a gross profit percentage in the range of 20-25% so as to be able to invest strongly in research and development, cover other administrative expenses, finance charges and tax and provide shareholders with a good return on their investment in the business.
Revenue in the second quarter of 2017 was at a similar level to that reported in the first quarter of 2017. A reduction in the gross margin to 8.6%, reflecting a less favourable product mix, and an increase in research and development expenditure resulted in a net loss of $944,000 for the quarter. The Company’s booking to billing ratio for the quarter was 0.90. The level of bookings showed some improvement from the first quarter but suggests the market will remain tough until the new products are launched in the second half of this year.
Sales and Distribution
Revenue decreased from $46.5 million in 2015 to $40.5 million in 2016. Demand for bipolar products in key geographic markets for traction declined compared to 2015, Indian railways, as a key example of this trend has continued its transition to IGBT from bipolar technology in traction. The expected growth in IGBT module was not achieved in 2016, which in part was due to a lower number of customer programme qualifications than expected transitioning into significant sales revenue. Power assemblies revenues declined but new customer orders were secured that are expected to contribute revenue in 2017.
Selected quarterly and annual financial information
All figures have been prepared in accordance with IFRS. Quarterly figures have not been audited except for balance sheet figures for each of the fourth quarters. The figures for the financial years 2014, 2015 and 2016 have been audited. All amounts are stated in thousands of Canadian Dollars except for the gross profit percentage and the gross R&D percentage and for earnings per share figures which are stated in Canadian Dollars per share.