Retail sector to blame for Optima’s revenue slump
1 March 2007 03:50PM
Tags:
optima | cornel | ung
Sydney-based PC manufacturer posts a decline in revenue for the final six months of 2006.
Sydney-based PC manufacturer Optima posted a decline in revenue to $41.6 million in the six months to December 31, compared with $45.2 million in the same period of 2005.
Net profit after tax for the period was $29,000, compared with a loss of $659,000 in 2005. Profit before tax, depreciation and amortisation was $631,000 compared with a loss of $263,000 in 2005.
Cornel Ung, chairman and managing director at Optima, said the drop in overall revenue was mainly attributed to the retail sector.
“The company has a strategy of transitioning away from the large retailers to mainly supplying to our own channel network which now runs under the 3C Shop banner. As the 3C Shop model matures, we will see a positive contribution from this [retail] area.”
Ung said the desktop segment is still growing well and the Optima peripherals business is taking shape and will make some contribution in the next six months.
“We have reduced overhead costs to align it to the level of our current revenue and gross profits. During the half year we incurred one off redundancy expenses of $319,000,” added Ung.
“We are now focusing on expanding our products, services and sales channels that will yield a higher margin.”