Amber Technology Still A Basket Case As Revenues Fall + Losses Mount
The Company whose latest yearend report looks like a cut and paste job from prior years has also been forced to raise a new two year loan facility after the Commonwealth Bank refused to extend the Companies loan facility.
As at June the 30th revenues had slumped 11.3% from $54.4 million in 2013 to $48.2 million in 2014. The Company made a $1 million dollar loss.
During the past four years the Company has blamed a slump in consumer demand for their entertainment products as a contributor to the Companies problems.
ChannelNews understands that the Company is facing the loss of the Onkyo brand following a merging of the brands operations with Pioneer.
Recently Ambertech management raised a new $6M loan facility with Bibby Financial Services. The new facility is an invoice discounting solution.
In what reads like a cut and paste from the 2012 and 2013 annual reports the Company said that “Ambertech’s Lifestyle Entertainment group continues to undergo the structural changes that are necessary to return the business unit to consistent profit results”.
The problem for Amber is that prior changes have not delivered an improvement in the Company’s results.
The report said “The second half of the year was particularly difficult for..consumer electronics products. This area has been the most challenging for Ambertech for some time now, as the overall market has shifted into different technologies and current suppliers have had difficulty adapting to the change. Management has sought alternative technologies in this area, however it has taken time to bring those products to the market”.
The Company said that their accessories products group continues to be a consistent performer with strong sales of headphones, remote controls and antennas” The Company expanded into a new range of racks, switches and optical cabling solutions in an effort to dig themselves out of the slump that is affecting the Company.
Ambertech’s New Zealand operation also reported a loss for the year.
Shares in the Company were trading on Friday at $0.15.