Toumaz has said in a trading update for the year ended 31 December 2012 that EBITDA loss will be in the region of £10.9m compared with a loss of £6.1min 2011.
“The increase in costs resulted from increased investment in new chip development, one off costs of acquiring Frontier Silicon and increased marketing spend to stimulate DAB demand in Germany,” said Toumaz.
EBITDA loss on a statutory basis is likely to be around £9.0m.
The company saw digital radio module and chip sales increase by 10.3% in a difficult market to reach 3.2 million.
Full year revenues were down slightly at £22.3m.
“With our market leading position in wireless radio chips, our focus is now on investment in new chip development across our core business units, healthcare (including sport and fitness), digital radio and network audio,” said Anthony Sethill, chief executive.
Pilot of SensiumVitals disposable digital vital signs monitor in Californian hospital commenced Q4 2012 and is progressing well
“We continue to prove and roll-out our SensiumVitals healthcare monitoring system. This will be updated with the Sensium 2 integrated circuit which conforms to the latest industry standards for body area networks, as well as Bluetooth Smart,” said Sethill.
Toumaz has completed the integration of Frontier Silicon, which was acquired in July 2012.
“The digital radio business will also benefit from a new range of highly-integrated, lower-cost and multi standard chips combining Toumaz and Frontier technologies,” said Sethill.
Toumaz is also developing its Sensium 2 chip, a multi-standard low power wireless technology including new IEEE802.16.5 and Bluetooth Smart, to address both professional and consumer opportunities.
Cash at the end of the period is not expected to be less than £15.2m.