Electric motor manufacturer and designer Wellington Drive Technologies (WDT) today announced a full year loss of $4.9 million as licensing and development delays offset sales growth.
Today's result ballooned from a $2.9m loss in the previous June year. But total operating revenue almost doubled to $2m, with revenue from product
sales rising to $1.5m from $400,000. Royalty income swelled to $60,000 from $7000.
WDT said the bottom line loss cast a shadow over improvements in product delivery - mainly to established European customers, and sales growth.
"Our financial results show the costs that we have incurred in expanding our production and delivery capability, while not yet reflecting the substantial progress the company has made on the sales and operating fronts," WDT said.
Licensing revenues fell dramatically to $10,000 from $191,000 during the period due to an accounting change. Under new terms "up-front" fees are paid once the initial stages of development are completed.
Costs were also higher as WDT invested heavily in product development, sales and marketing, distribution, production and stock.
Looking ahead, WDT said the outlook was strongly positive.
"The high prices for oil are focusing authorities and consumers on energy efficiency to a greater extent than at any previous time.
"Market demand for electric motors with good energy efficiency, like Wellington's, is growing."
The firm expects strong revenue growth in the current financial year and beyond.
WDT manufacturers and licenses electronically-commutated (EC) motors which have high energy efficiency compared to traditional electric motors.
Its target markets are Europe and the United States where producing electricity from electronic motors is less expensive than oil and gas.
Shares in WDT rose 2c, or 6 per cent, to 35c on today's result, against a year high of 60c and a low of 33c.
- NZPA
