SGOCO Group announced its unaudited operating results for the six months ended June 30, 2015. 2015 interim revenues decreased 98.5% to $0.5 million for the first six months of this year (H1), as compared to $34.1 million for H1 2014.
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Gross profit dropped 98.6% to $0.02 million in the H1 2015, from $1.7 million for the same period in 2014.
Net loss for the H1 2015 was $0.9 million, compared to net loss of $1.6 million during the same period in 2014.
Basic and diluted loss per share was $0.05 for the H1 2015, as compared to $0.09 loss per share in the H1 2014.
Due to the increasing popularity of mobile devices, the contraction of the personal computer market demand continued and it adversely impacted the market demand of our major product, flat panel LCD and LED monitors.
The drop in market demand also led to intense competition with our peers which has further affected our revenue and gross margins. Our total revenues decreased by 98.5% to $0.5 million, as compared with $34.1 million for the first six months of 2014.
In H1 2015, the gross profit of the Company decreased 98.6% to $0.02 million from $1.7 million for the same period in 2014. The overall gross margin for the H1 2015 was 4.8%, as compared with 5.1% during the same period of 2014.
The Company recorded a $0.8 million operating loss in the H1 2015, as compared to an operating loss of $1.9 million in the H1 2014. Operating expenses in H1 2015 decreased by 77.2% to $0.8 million, compared to operating expenses of $3.7 million in the first six months of 2014.
The decrease of G&A expenses was mainly due to tightened controls over expenses and decreased staff costs due to the number of employees reduced in our Hong Kong, Shenzhen and Beijing offices.
Net loss for the H1 2015 was $0.9 million, compared to a net loss of $1.6 million for the same period in 2014.
The net margin experienced a loss of 169.4% in the H1 of 2015, as compared to 4.8% during the same period of 2014. Basic and diluted loss per share was $0.05 in the H1 of 2015 based on 17,531,861 weighted average number of common shares, as compared to basic and diluted loss per share of $0.09 based on 17,397,082 weighted average number of common shares for the H1 2014.
SGOCO held $91.6 million cash and cash equivalents at the end of June 30, 2015, compared to $0.1 million as of December 31, 2014.
Working capital decreased to $84.5 million from $85.2 million at the end of December 31, 2014. The receipt of Sales Price and Receivables from disposal of our subsidiary, SGOCO (Fujian), were the major causes for the increase of cash flow. ■