Tronics makes cuts as sales plunge
Tronics announced in its financial results for the year that the revenue in 2015 totalled €7.8 million (about $8.7 million) versus €11.6 million (about $13 million) in 2014 and the 33 percent fall was due to a lack of revenue from one key customer and lower than expected orders from other customers. As a result the company turned in a 2015 net loss of €3.0 million (about $3.35 million) compared with a profit in 2014 of €140,000.
Tronics said that it expects to grow revenue to about €11 million in 2016 although this will be weighted to the second half of the year. The company also indicated that another loss would be made in 2016 with operating breakeven only expected in 2017. To accelerate the return to profit Tronics has implemented a cost reduction program expected to produce savings of €700,000 in 2016, or about 9 percent of 2015 fixed costs. Tronics did not indicate whether this includes staff reduction or how many staff would be let go.
Tronics said it won 11 new customers in 2015, and that these wins have increased its international sales to 44 percent of total and sales into life science applications. In 2016 it has signed contracts in support of wearable medical devices, industrial gas sensors, and presence detection. As of December 31 2015 Tronics had €9.1 million in cash on hand and gross debt of €4.5 million.
“In 2016, our goal is to strengthen our company in three areas where we have strong positions: standard gyro and accelerometer solutions for high performance inertial applications, custom products for innovative industrial markets, and BioMEMS applications in Dallas,” said Pascal Langlois, CEO of Tronics, in a statement.
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