The chairman of Edinburgh-based video security company IndigoVision said on Thursday the firm’s financial performance in 2017 and prior years “has not been acceptable and IndigoVision is not achieving its full potential.”
The chairman’s criticism came as IndigoVision reported an operating loss of $2.8 million for 2017 on revenues that fell 8% to $42.3 million.
In January, IndigoVision confirmed Pedro Simoes as its new chief executive officer.
Last November 24, shares of IndigoVision fell almost 30% after it said Marcus Kneen had resigned from its board and ceased to be chief executive officer with immediate effect after 14 years with the firm.
IndigoVision has lost more than half of its stock market value since last summer.
IndigoVision chairman George Elliott said: “The group’s financial performance in 2017 and indeed, prior years, has not been acceptable and IndigoVision is not achieving its full potential.
“This has resulted in significant changes in the board and senior management.
“The leadership team are committed to improving standards and performance at all levels in the group, and under this new leadership, the group’s strategic direction has been set to better serve our shareholders, customers, employees, partners and other stakeholders.
“It is expected that considerable progress in delivering the group’s strategy will be made in 2018 but this will not be reflected fully in it’s operating results until 2019, consequently management is targeting to at least break even in the current year.”
CEO Simoes said: “Since joining the group in late 2017, I have been excited to meet my new colleagues and explore the potential within our product development teams.
“I recently met with the group’s leadership team to outline my vision for growth, making sure we have the right products and approach to address all parts of the market.
“While our markets remain competitive, I am confident that after a period of stabilisation, during which new people and new systems bed in, IndigoVision is well positioned for growth.”
In its outlook, IndigoVision said: “Although only two months into the group’s first quarter, both actual sales to date and the increase in the sales pipeline have been encouraging.
“The investments made in 2017 in North America and the launch of new products targeted at the different market segments, together with innovative new products planned for the second quarter are expected to drive revenue growth in 2018.
“It is anticipated that the board and senior management will make significant progress in delivering the group’s strategy in 2018 but this will not be reflected fully in its operating results until 2019 and consequently management is targeting to at least break even in the current year.”