Starcom, a developer of wireless solutions for the remote tracking, monitoring and protection of assets, expects to swing to an EBITDA profit of $500,000 for the year ended 31 December 2017 from a loss of $612,000 the year before.
Turnover is expected to be not less than $5.5m, up from $5.1m in 2016, and the gross margin will exceed 41%, compared with 28% a year ago.
Total operating expenses in 2017 are expected to be 31% lower than in 2016 and, as a result, it is anticipated that the consolidated net profit after tax will show a breakeven position or a small loss, following a loss of $2m in 2016.
Starcom said it is experiencing one of its highest levels of orders for delivery in the first half of the year. Based on the level of orders and new business enquiries, the board anticipates that revenues and margins in 2018 will continue to improve.