Innovision Research and Technology has reported a £2.2m loss in revenue following delays to major projects in the financial year ending 31 March 2009.
According to the Gloucestershire-based group, the economic downturn has significantly affected the semiconductor industry leading to a shortfall in development programmes and a delay in licence revenue.
The group’s overall revenue was considerably lower at £1.2m compared with £3.4m in the previous year. As a result the company experienced a £2.9m loss before tax compared with £2.1m a year earlier. Cash deposits were at £3.6m and net cash outflow was at £2m against £2.5m in 2008.
Despite the drop in revenue, the company said that it would continue to recruit new engineers on the back of recent contract wins and is hopeful of a strong year ahead.
Strategic advances in deploying its Near Field Communications (NFC) and its introduction into the Chinese market has placed the group in a promising position for 2010.
Since March 2008, Innovision has secured three contracts with global semiconductor companies to incorporate its NFC IP into their mobile handsets. The group believes these deals will generate multi-million pound royalty revenues over the next few years.
David Wollen, Innovision’s chief executive, said: ’We are pleased to have made significant strategic advances although we are clearly disappointed at the delays affecting the financial results. Licensing our NFC IP to some of the largest global semiconductor companies and signing our first major RFID development contract in China has put the company in a strong position from which to move forward and continue successfully investing in these markets.’
Looking ahead, chairman Malcolm Baggott, said: ‘Despite the prevailing uncertain climate, there is no doubt we have made major progress in being selected as the best technical solution to provide NFC IP to some major semiconductor companies. The focus for the next year is the successful implementation of the recent contracts, continued investment until they deliver royalties and securing new programmes with new customers in both NFC and China.’