ORBITAL Corporation says order timing issues are responsible for a net loss of $1.5 million for the half year to December 31. The report shows revenue was down 46 per cent to $5.4 million.
The engine developer said the result was due to a drop-off in orders in the Powertrain Engineering Services division with royalties and licences also feeling the pinch, consistent with previous guidance to the market.
Engineering services’ revenue fell 40 per cent to $3.7 million for the half year ended December 31.
Royalties and licence fees are derived from a wide range of customers for the company including the marine, motor-scooter, personal watercraft and autorickshaw sectors.
Revenue from the licences declined 53 per cent from the previous corresponding period to $0.9 million. Despite this Orbital expects royalties from licences sold in India and Japan last year to flow later in the calendar year.
The company remains optimistic that its focus on the Asia Pacific region is creating an encouraging forward pipeline.