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| Subject: SMARTCARD maker ERG has posted another resounding loss - dropping $198.3 million in the past financial year. | |
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Author: Cards will turn, says ERGBy David King13sep03 |
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Date Posted: Friday, September 12, 06:13:35pm In reply to: WA REPORTING laggards led by ERG have completed a disappointing year by reporting combined losses running into hundreds of millions of dollars. 's message, "ERG loses $198.3m in bad season for WA firms September 13, 2003" on Friday, September 12, 06:10:12pm http://www.heraldsun.news.com.au/common/story_page/0,5478,7251707^462,00.html Cards will turn, says ERG By David King 13sep03 SMARTCARD maker ERG has posted another resounding loss - dropping $198.3 million in the past financial year. But the result compares favourably with the previous year's performance, in which the Perth-based company lost $243.4 million. Chief executive Peter Fogarty, recovering at home from a broken hip sustained in a ride-on lawnmower accident, said he expected ERG to return a profit in 2003-04. "The major part of the loss was in the first half, and that was not a surprise to the market," he said. "The turning point has come and we're on track to profitability." He said ERG's return to profitability depended on the company's ability to deliver on its big international projects, such as Seattle, Stockholm, Sydney and Washington DC. "ERG's immediate focus is on the delivery of these projects which have a projected supply value of approximately $200 million," the group said. Asset writedowns accounted for $114.2 million of ERG's 2002-03 loss. Mr Fogarty said the new board had taken a fine comb to the value of the company's assets and made a number of writedowns. The biggest was a from the sale of the Belgian smartcard business Proton World, where ERG took a $52.4 million haircut on goodwill. New members joined the ERG board when the company converted $250 million of notes to equity early this year. ERG's cash flow was positive $6.5 million in the second half, compared to a $10 million outflow in the first half. At the end of June, the company had $22.9 million cash in the bank. Revenue for the full year was $327.6 million, which included proceeds of $94.6 from the sale of Proton World. Underlying revenue was $205 million, a drop of 24 per cent from 2002. The company said the revenue falls came from a delay in the commencement of several major projects, which the group had won in the past two years. The company said the major contracts in Gothenburg, Stockholm, Seattle, Sydney and Washington DC were expected to stop the fall in revenue. [ Next Thread | Previous Thread | Next Message | Previous Message ] |