Quixant cited the effects of the Covid-19 pandemic when the interim results for the first half of 2020 were released. Compared to a $3.4 m profit in 2019 , the company announced an adjusted pre-tax loss of $1.2 m, with sales dropping 33 percent to $27.9 m.
Quixant praised Densitron’s resilient trading, diligent management of its gaming clients and prompt overhead management that helped the company to end the half with a healthy net cash position.
Net cash from operational activities was $0.3 million (H1 2019: $6.7 million), with $14.2 million rising to $17.4 million as of 28 September 2020 at the end of June.
Quixant CEO Jon Jayal commented: “I am pleased with the way our team has risen to the extraordinary challenges of the last six months and produced results substantially better than in the gloomy scenarios considered as part of our 2019 year end audit and presented in March 2020.”
“We moved quickly to adjust to different working conditions alongside the rapid and significant changes in demand from customers. Thanks to strict financial discipline and close collaboration with our customers we have maintained a healthy net cash balance and have strengthened many of our customer relationships further.
“This puts Quixant in a strong position to benefit from the recovery in our global end markets. Alongside this we see a clear opportunity to draw on our history of innovation, stepping up to deliver what customers are looking for from us now.”
Overall sales dropped from $41.9 m in 2019 to $27.9 m year-on-year. Broken down, revenue from the Quixant gaming division was $11.9 million (down from $23.6 million); revenue from gaming sites was $10.6 million (a decline from $19.6 million); and revenue from gaming monitors was $1.3 million (previously $4.0 million). Revenue from the Densitron division was $16.0 m (down from $18.4 m). At 36 per cent, gross margins stay the same as last year.
Since venues started to re-open in May, with early signs of re-opening in orders and deliveries and new business early in the second half, there has been a steady increase in gaming division revenues.
Despite COVID-19, Densitron remains resilient and Quixant expects to post growth in the broadcast and medical markets in 2020, along with a return to profitable trading in the second half to offset some of the reported losses experienced in the first half and a sustained recovery in 2021, with the exception of any more widespread global lockdowns resulting from COVID-19.
Mr. Javal added: “We are working on introducing new business models with the aim of unlocking more repeatable revenue streams and grant us access to new market opportunities.
“Quixant is a strong business with excellent customer relationships and innovation at our core which, combined with our strong financial position, we believe will drive excellent stakeholder value over the long term.”