Microsaic Systems losses deepen on higher costs

Microsaic Systems reported a deepening of its interim losses on Monday as an increase in expenses outweighed revenue growth.

The mass spectrometry instruments developer reported a loss before tax of £1.6m for the six month period ended 30 June, compared to a loss of £1.5m in the same period a year before, as total operating expenses rose 4% to £1.7m after further investment in marketing and the hire of two additional staff.

Cost of sales was also on the up, rising 56% to £0.2m.

This more than offset a 30% jump in revenue to £0.3m as instrument sales grew 35% and consumable and service income rose 11%.

Though it reported higher revenues, the AIM-listed company said some deliveries were delayed due to its manufacturing partner needing to ramp up throughput on newly-implemented testing and release procedures. This is not expected to be a long-term problem as the company said full capacity will be in place to support significant further sales growth in 2020 and beyond.

Microsaic also laid out a strategy to achieve further growth from 2020 and said it anticipates substantial revenue increases in the short to medium term, driven by its differentiated products and closer collaboration with original equipment manufacturers and distribution partners.

Chief executive Glenn Tracey said: "In addition to the growing base of supportive data, the board is encouraged by the early signs of increased engagement the company is seeing from potential customers, strategic partners and OEMs."

Microsaic Systems shares were down 22.58% at 1.20p at 0933 BST.