Encad has attributed its third-quarter loss to the launch of its NovaJet 850 eight-colour wide-format printer, which "adversely impacted" on sales of existing products.
Last year's net income of 474,000 ($690,000) turned into a 7.2m net loss. Sales fell by a third to 12.7m.
Redundancy payments due to reduced senior management levels, a one-off charge for an abandoned product development project, a litigation settlement, and income tax expenses of 1.38m also contributed to the loss.
Encad has started shipping the NovaJet 850, which it believed would improve future figures.
OEM sales accounted for 15% of the third-quarter figures, compared to 20% for the same period last year. International sales also dropped, this time from 69% to 60%.
As PrintWeek went to press, no one from Encad's senior management team was available for comment.
Story by John Davies
Have your say in the Printweek Poll
Related stories
Latest comments
"I have worked in quite a few print sectors, including Walstead in the past. It is all tough, but most will not be surprised that the packaging sector is still growing. However, the service in the..."
""longer run litho work had “now returned to the Far East”?
Is this happening a lot?"
"Thanks Jo, look forward to reading it in due course. Administrators generally argue that they need to act with lightning speed in order to protect the business/jobs, thereby overlooking the fact that..."
Up next...
Budget measures will increase costs by around £1.5m
Macfarlane tackles headwinds, reports good momentum in new business
Phased closure during 2025
UPM Raflatac to shut German site, shifts work to 'more cost competitive factories'
Genesis Mannequins
Kesslers directors buy leading mannequin firm from administration
Aims to empower the packaging industry