Energy Mad posts $2.5m interim loss
Energy efficient light bulb manufacturer Energy Mad has seen a significant fall in its half-year revenues and made a loss for the six months to September 30.
It reported a half-year loss after tax of $2.5 million for the six months, affected by a tax-asset writeoff and a reduction in revenues.
This was wider than the $500,000 loss for Energy Mad's 2012 first half.
The NZX-listed company said United States sales fell significantly, but New Zealand and Australian sales grew in the September 30 result. There was considerable uncertainty around the timing and size of orders from major customers.
In its unaudited results, Energy Mad delivered operating half-year revenues of $4m, down from $4.5m for the September 2012 half-year.
United States revenue fell to $500,000 compared with the $1.6 million revenue received in the September 2012 half year. The non-United States revenue grew by 36 per cent compared to the prior first half.
Energy Mad shares last traded at 25 cents.
It said its revenues included $2.0m from Australian spiral Ecobulbs, an 18 per cent increase over the September 2012 half-year, and $1.4m New Zealand direct installation revenue, a 62 per cent increase over the September 2012 half-year.
Energy Mad said it had a $2.0m deferred tax asset on its balance sheet.
However, the nature of Energy Mad's business meant there was considerable uncertainty around the timing and size of orders from major customers.
This uncertainty, combined with the loss for the six months and the historical losses, resulted in the board considering the appropriateness of continuing to recognise a deferred tax asset on a portion of the historical losses.
The board also reflected on the recognition criteria within tax regulations given the uncertainty of timing of sales orders.
It concluded it was appropriate in these circumstances to fully write-off the $2.0m deferred-tax asset.
However, this tax asset was not lost and could be used when Energy Mad became profitable, it said.
The write off had no impact on Energy Mad's cash position at the end of September or its carried-forward tax losses.
Without this deferred tax-asset write-off, Energy Mad would have delivered a slightly reduced loss relative to the $500,000 for September 2012 half year.
Energy Mad said it continued to target revenue growth in the United States through Walgreens and electricity utility projects, and a ramp-up of the 12V halogen replacement market in the Victoria, Australia energy efficiency scheme.
However, the major driver of Energy Mad's growth in the short term would come from an accelerated scale-up of the direct installation business in New Zealand.