Amphion revenues hit by IP programme shake-up

28th Feb 2011 10:01

Full-year revenues at Amphion Innovations, a developer of medical and technology businesses, fell by 53% to $4.09m in 2010, after a reorganisation at its intellectual property (IP) licensing programme. The shares fell 13%.Gross profit for the 12 months to 31 December fell from $5.79m to $3.08m as a result. Loss from operations more than doubled from $0.89m to $1.89m despite administrative expenses being cut to $4.96m, from $6.68m previously. The group reported in June and September that it had undergone a restructuring of its IP licensing programme to improve returns, resulting in a shortfall in revenue in the first half.However, the group says that the programme generated improved revenues and margins in the second half."While the restructuring of our IP licensing programme proved to be extremely disruptive, with adverse consequences for the flow of settlements and revenue, we believe that the programme is now a lot stronger and the underlying economics have improved sharply as a result," said chief executive officer Richard Morgan.Net asset value (NAV) per share fell from 42 cents as at 31 December 2009 to 23 cents at the end of 2010, which equates to a total NAV of $31m