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Wellington Drive Technologies' June-year deficit widens


Wednesday 21st August 2002

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Auckland motor maker Wellington Drive Technologies' full year loss widened by 43 percent to a $2.96 million deficit, as sales revenue continued to elude the company.

Expenses for the year ended June totalled $3.2 million (before unusual items), up by $560,000 the previous year, from on-going product development, external certifications and testing, depreciation of production equipment and some stocks, and staff costs in engineering and sales, the company said in a statement today.

Licensing royalties, product sales and engineering fees of $330,000 made up the bulk of total revenue of $530,000.

At the end of its financial year, WDT had about $2.5 million on deposit.

Expected large-scale licensing payments have failed to materialise, and the company was forced to raise $1.5 million in capital this year to press on.

The North Shore-based Wellington Drive makes innovative brushless motors for appliances such as fans, air filters and air-conditioners.

WDT has obtained seven new contracts since December.

"While revenues from orders obtained since December are not immediately substantial, all programmes have significant medium-term revenue potential," the company said.

The motor market had shown signs of accelerated adoption of electronically-commutated motors, the area in which the company specialised, the company said.

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