Sealegs projects weaker revenue for 2010

Friday 17th July 2009

Sealegs Corp., the manufacturer of amphibious vehicles, forecast a drop in revenue this financial year and said it is cutting operating costs to adjust to tougher economic conditions.

Sales in the year ending March 31 will be $7 million to $10 million, down from $11.6 million a year earlier, the company said in a statement. In the three months ended June 30, the company sold 20 boats, generating revenue of $2.2 million.

Last month, the company was rated a “speculative buy” by McDouall Stuart, with long-term growth prospects in the US lifting revenue. It reported a net loss of $5.8 million for the 12 months ended March 31, reflecting a one-time cost to cancel an employee share option plan, and a write-down of R&D and goodwill.

Still, it was optimistic it can ramp up activity when demand returns, and said it the US Coast Guard had signed off on its amphibious boat models.

Sealegs is “in a good operating position to deal with the current market,” the company said in a statement, with US approval for the three vehicles designed for rescue and development projects. “Production rates have been increased from budget to accommodate a slight increase in recent sales demand.”

The shares, which trade infrequently, rose 1.6% to 12 cents, and have surged 26% in the past three months.

Businesswire.co.nz

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