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Electronics Production | March 19, 2008

SCM reports a $1.9 million net loss

The German SCM, a developer of smart card reader technology, announced a $1.9 million net loss for the fiscal year 2007.
Revenue from continuing operations increased by 3% in Q4/07 to $9.7 million (Q4/06: $9.4 million). The Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) was $27,000 in Q4/07 (Q4/06: $0.5 million).

Gross margin in Q4/07 was 43% (Q4/06: 42%). As expected, interest income had a positive effect on the company’s financial results in Q4/07 and resulted in GAAP income from continuing operations of $0.4 million.

Revenue for the year was down by 9% to $30.4 million (PY: $33.6 million). The company’s primary reason is the loss of a major customer at the beginning of 2007, which higher sales in the second half of the year did not offset. The total net loss for 2007 was $1.9 million, compared to total net income of $1.0 million in 2006.

SCM expects to achieve revenue growth between 25% and 35%, which would result in revenues of $38 million to $41 million for 2008. The Company’s projections of revenue growth are based on the planned release of new products currently under development, which are forecasted to generate increased sales volumes beginning in the second half of 2008.

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