Faced now with a difficult situation, Archos said it is working hard to reduce its fixed costs and to rapidly restructure. The company wants to concentrate its range around flagship and value added products and focus on French territory. The company also said it will continue to seek funding so that it can calmly put these reorganisation plans into action. A progress report will be given to shareholders in the fourth quarter.
Revenues for the first half almost halved to EUR 17.2 million from 32.3 million the year before, pulled down by Archos operations, which sank to EUR 11.5 million from 26.8 million. At the Logic Instrument division, revenues lifted to EUR 5.7 million from 5.5 million. The group net loss meanwhile widened strongly to EUR 20.6 million from a loss the year earlier of 0.5 million.
Archos noted that operating expenses went 11 percent lower, to EUR 8.7 million from 9.8 million and that the company was continuing with its savings plan. Net cash at the end of June amounted to EUR 6.4 million, down by 7.8 million against end December. The company attributed the lower figure to its operating loss of EUR 5.8 million.
