Singulus Technologies has endured some rough years of late, but the good times looked like they may be returning after the company signed contracts for the biggest order in its history. However, Singulus has now revealed that the contracts were signed later than expected, forcing it to withdraw its financial forecasts with immediate effect.
After posting disappointing yearly results in 2015 and then continuing the trend into the first quarter of 2016, Singulus injected some optimism into its financial performance, with forecasts that the company would be returning to profit in 2017. On top of this, it had predicted sales between 115 million and 130 million (US$130 – 147 million) for 2016, and an operating (EBIT) loss of between 2 million and 3 million (US$2.25 – $3.4 million) for the year. Both of these projections were well above those registered in 2014 and 2015.
However, the company has now withdrawn those forecasts with immediate effect, citing the order with a subsidiary of China National Building Materials (CNBM) for CIGS module production machines as the reason. The order, worth in excess of 110 million (US$123 million), is the largest in Singulus history, but the contracts were signed later than expected.
A statement from the company read: From todays point of view and contrary to previous expectations, major parts of the sales and earnings realization will be delayed to after the turn of the year 2016 and into the business year 2017, because the contract has been signed later than it had been expected during preparing the forecast.
Singulus went on to say that it will publish new forecasts when it has a clearer idea of the financial situation for the company looking into 2016 and 2017. It also confirmed that the ongoing restructuring measures will be realized as planned.