Nov 14, 2007

Nipson slumps in third-quarter


Nipson has reported a massive fall in profits for the nine months to September 2007, citing a decrease in equipment sales as behind the poor results.

Year-on-year profits for the period were £2.49m, down 61.2% year-on-year on its £6.43m revenue in 2006.

The manufacturer's £4.9m of equipment sales represent a 51.5% decrease compared with the same period in 2006, with the US constituting the largest part of the decrease, dropping 73.6%.

While recurrent sales for the period continued to grow, with an increase of
2.1%, the lower number of equipment sales meant revenue dropped by 20.7% to £18.9m.

It reported an operating result loss of £3.1m compared with a profit of £300,000 for the same nine months in 2006.

The France-based company experienced a £500,000 drop in operating costs to £5.6m, declaring the weakening dollar and the group's cost reduction programmes as reasons for the fall.

Nipson chairman Rimon Ben-Shaoul said: "The growth in our recurrent revenues is encouraging. I believe the fourth quarter will show an increase in equipment sales."

Source: printweek

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