Cellnet scraps $2 million of mobile phone inventory

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Cellnet scraps $2 million of mobile phone inventory

Cellnet Group Limited, an ASX-listed partner of the likes of Samsung, Plantronics, HTC and BlueAnt, has partly blamed its full-year loss on the scrapping of $1.97 million in inventory relating to accessories of superseded phones.

The mixed result saw a loss of $3.88 million from continuing operations after income tax despite revenues growing 16 percent in the 2014 financial year, to $82.2 million.

Cellnet slipped into the red after last year's profit for continuing operations of $1.09 million after tax.

While the loss was partly attributed to the scrapping of inventory, the main factor in the loss cited by the phone and tablet accessories distributor was a weak Australian dollar.

Revenue growth "did not translate to into an increased bottom-line performance mainly due to suppressed margins resulting from the weakness of the Australian dollar during the financial year and the charges detailed below", stated today's director's report.

These charges included the scrapping of inventory, as well as restructuring costs of $405,000, foreign exchange losses of $732,000, and $150,000 impairment of intangible asset.

The company is forecasting a return to profitability in the 2015 financial year. Results have exceeded budget for the first month of the new financial year.

Earlier this year, CRN reported that Cellnet appointed Alan Sparks, former vice president Belkin APAC, as the new CEO.

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