I-MATE, the troubled mobile phone technology company majority owned by Scot Jim Morrison, yesterday insisted it was confident in its future despite reporting a loss of more than $60 million yesterday.
Shares in the Dubai-based firm plunged to a record low as it reported a loss of $61m, more than the company's annual sales.
The company, which makes handheld devices compatible with Microsoft Windows, blamed a slowdown in the market for revenue pl
unging by more than two thirds – from $195.5m to $61m in the year to March – with a major cost-cutting exercise adding $27m in losses for the period.
Chairman Bernard Cragg said in a statement that it was "difficult to express how painful this year has been for the company and for all of us".
He added: "About everything that can happen to a young high-tech company did. The... (results] speak for themselves and are extremely disappointing."
Cragg said the company had been hit by poor quality control from its suppliers, product which was late and lagged market requirement, litigation and poor sales management.
"At the time all of these issues were hitting us, the industry experienced a significant downturn in our market segment and a resulting decline (in sales] particularly in corporate volumes," he said.
Cragg continued: "The effect of all this was that revenues throughout the year were significantly below plan, costs were increased by non-recurring write-offs, claims and reorganisation expense.
"Most recently, the upturn in sales we had expected in the 4th quarter just did not happen sufficiently even though we had a good line-up of phones with great features."
Despite raising the prospect of taking the company private to save costs, shares closed down at 1.75p, down 57 per cent yesterday – a fall of around 95 per cent on a year ago.
Earlier this year the company announced a strategic review, which prompted speculation that it was up for sale.
The firm said it was not seeking a buyer and the speculation did not lead to any offers.
Yesterday Morrison revealed that nominated advisors Cazenove had indicated it wished to resign, and i-mate was looking at the "purpose and value" of being listed on the Aim, the cost of which the company estimated to be about $2m a year.
The company has another nominated advisor to be appointed if the company elects to remain listed, Morrison said.
Despite describing the year as "disastrous", Morrison said the next 12 months was looking a lot better, with a better, leaner product pipeline.
He added: "We will focus on controlling our costs and making sure that our new products are world beating and, therefore, despite the current market conditions, are confident in the group's continued activity."
The former head of mobile devices at BT, Morrison founded i-mate in Glasgow in 2001, reducing his stake to around three quarters when the company listed on the Aim in 2005, before relocating to Dubai in 2006.
