Product category:
Embedded Software and Operating Systems
News Release from: Esmertec
Edited by the Electronicstalk Editorial
Team on 26 January 2006
Esmertec warns of bad debts
Esmertec is expecting 2005 revenue to be in excess of US $39 million, an increase of approximately 46% compared with 2004 revenues of US $26.8 million.
Esmertec is expecting 2005 revenue to be in excess of US $39 million, an increase of approximately 46% compared with 2004 revenues of US $26.8 million, reflecting strong sales in the mobile phone market Total gross margin for 2005 is expected to be around 65%
This article was originally published on Electronicstalk on 21 Aug 2002 at 8.00am (UK)
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Due to recent developments with certain Asian and European customers, Esmertec's management has concluded that there is a risk on the recoverability of amounts owed from certain contracts.
Esmertec is vigorously pursuing all avenues for settlements of the amounts due, including possible legal action.
If settlement is not confirmed prior to the issuance of the company's annual results on 2nd March 2006, Esmertec estimates that the net increase in the provision for bad debts for the year ended 31st December 2005 would be a maximum of US $7.9 million.
Operating expenses for 2005, excluding amortisation, depreciation and bad debt expense, are expected to increase by about 25% year-on-year due to the accelerated ramp-up of Chinese and Japanese operations to meet expected customer demand in those regions.
"Given the rapid evolution of the mobile industry, particularly in Asia, we are looking to adapt our licensing methodology in order to minimise such risks in the future", said Alain Blancquart, CEO of Esmertec.
"We are pleased by our strong revenue growth while controlling operating costs".
"Our revenue performance demonstrates the continued traction and uptake of our software solutions, and we remain very optimistic about Esmertec's business for 2006 and our prospects for long-term growth".
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