Deltex Medical Group expects losses for the year ended 31 Dec to be higher than market forecasts.
The group said US revenues rose by 5% to £2.0m but overall revenues fell to £5.9m from £6.3m with a UK revenues down £0.4m at £1.9m and International revenues 5% lower at £1.9m.
Chairman Nigel Keen said: 'Procurement process headwinds held sales back to disappointing levels in 2017. However, Deltex enters 2018 positioned to benefit from momentum in the USA and other focus export markets.
'The UK continues to be a difficult market due to NHS funding constraints.
'We have substantially reduced our rate of operating cash consumption in order to meet our key goal of getting past the operating cash breakeven point.
'In the final quarter of 2017 we put in place a number of changes to our cost base with effect from the start of 2018 and, in view of the actual level of 2017 sales, we are reducing our costs further to match our operating cash costs with current levels of sales.
'These actions should allow us to fund future organic growth out of operating cash flows.
'We have completed a large part of the investment necessary to move the Company from a single technology to a multiple technology business and are moving our marketing focus forward accordingly.
'We expect to see the impact on sales growth of these developments starting to come through during 2018 to supplement our established position in major export markets as a significant provider of haemodynamic monitoring solutions.'