Shares in HiWave Technologies plummet following financial update

Shares in HiWave Technologies plummeted on Monday after the electronics manufacturer published its interim management results showing revenue levels which were 'below the board's expectation'.

Revenue for the quarter to December 31st was recorded at £200,000, reflecting what the business described as "difficult market conditions".

Gross profit margin on component revenue and royalty revenue stood at 37% and 100% respectively in the period from October 1st to February 15th.

The company is currently engaged in a sale process but it said there were questions regarding the certainty of it being able to create value for shareholders.

"The risk that the sale process, previously announced and currently underway, does not conclude satisfactorily, either as to timing or level of proceeds, continues to represent a material uncertainty around the ability of HiWave to continue as a going concern and around the question as to whether HiWave will be able to generate any value for shareholders," the company statement disclosed.

"The board believes that there is a significant risk that, even if HiWave achieves a disposal of all or parts of its business, little or no value may be attributable to the ordinary shares," the update continued.

David Calderwood, Executive Chairman of HiWave Technologies, commented: "Our highest priority is the achievement of a successful outcome to the sales process that is currently underway.

Further to our announcement on January 31st 2013, we have received a number of expressions of interest and discussions are progressing although there can be no guarantee that any of these discussions will lead to a successful sale. The ability of the Plc to return any value to shareholders is wholly dependent on the outcome of this sales process."

HiWave Technologies' share price was down 75% to 0.18p at 10:28 on Monday.

MF