Ambertech Shares Fall After Company Announces Loss
Sydney-based Ambertech, who back in June, failed to tell the market that they had lost key consumer accounts has announced that they are facing losses of up to $800,000 and that revenues have slumped from $54.7 million last year to a forecast that could be as low as $48M.
Back in June we exclusively revealed that the Sydney based distributor had lost two key consumer brands Marshall and Urbanears to Melbourne based start-up Aqipa.
The Company whose shares are currently trading at $0.200 have struggled to lift revenues in the consumer market with the loss of Marshall and Urban ears set to impact revenues in their consumer division even further.
Today their shares are listed at junk levels of $0.130.
In a statement to the ASA yesterday The Board of Ambertech Limited (“AMO”) said that they had recently reviewed its expectations in relation to results for the year ending 30 June 2017. They said that sales would come in at a range of $48M‐$50M (June 16: $54.7M); and that they will report net losses after tax in the range of $500,000‐$800,000 (June 16: profit $237,000).
The final results may vary subject to any potential audit adjustments.
Company Secretary Robert Glasson said “The deterioration in revenue and profit are a result of the following factors, reduced business activity in the residential installation market, across all brands, consistent with an industry wide malaise believed to be the result of concerns over domestic housing prices and international politics”.
This is in sharp contrast to brands such as JBL and Harman Kardon as well as the likes of Sony and Sennheiser who have reported record growth in the consumer markets where Ambertech is struggling.
He also said that reduced sales activity in the Companies media systems group, were affected.
ChannelNews understands that the Company is a Channel Ten creditor and that the Company has been affected by Ten being placed into administration. We have also been told that several organizations are circling the Company and that the Company could be sold in the future.
Back in February 2017 Ambertech reported that sales revenue was down 16.9% to $14,357,000 compared to revenues from this division of $17,284,000.
EBIT was down 39.0% to $759,000 Vs $1,245,000 in the prior year.