i-mate posts US$2.1 million pre-tax loss

Mobile phone manufacturer i-mate has recorded a landslide drop in pre-tax profit for its financial year ended 31 March 2007.

  • E-Mail
By  Michele Howe Published  June 5, 2007

Mobile phone manufacturer i-mate has recorded a landslide drop in pre-tax profit for its financial year ended 31 March 2007. The Dubai-headquartered firm today announced a pre-tax loss of US$2.1 million in its preliminary results for the year ended 31 March 2007 in comparison to a US$22.5 million pre-tax profit in 2006. Revenue for the year came in at US$195 million in comparison to US$206 million in 2006, with the Middle East region accounting for just under a third (31%) of the total. The firm said it had experienced production problems at its device supplier and quality issues with devices, which had led to a major reduction in the level of shipments of products. “It has been a challenging but pivotal year for i-mate,” chief executive Jim Morrison said. i-mate admitted to supplier issues earlier this year, but has now revealed the full extent of its problems. Morrison said the firm had experienced ‘unexpected problems’ with a new manufacturer. “Devices were not delivered to schedule and they were of inconsistent quality,” he said. “Additional manufacturing and process problems meant that the group had insufficient stock to fulfil existing orders and, on top of this, stock circulation had to be recalled or reworked on site,” he added. The firm’s difficulties first came to light in April when it cut 10 of its 75 employees in the region. Morrison added that the firm had made a series of changes aimed at turning its fortunes around. “Difficult but necessary steps have been taken to strengthen the business to ensure the problems experienced during the year are not repeated,” he said. These include establishing a new operating model and setting up a quality assurance team to work alongside its manufacturers. Morrison said he remained optimistic about the future of the company that he founded in 2001. “With multiple supplier agreements, a growing geographical footprint, a broader product mix, and our ongoing excellent relationship with Microsoft, I remain positive about the growth opportunities available to the group,” he said.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code