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
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"Bit weird. From what I've heard, things started to go wrong when their trade customers found out they put a B1 printing press in and went from a supplier to a competitor......"
"Sad to see another print company facing financial trouble. The industry is tough, and this highlights the ongoing challenges many are facing. Hope employees and customers get clarity soon."
"Not surprised, businesses need to prepare for these attacks rather than thinking that they're going to avoid them. At the very least, data needs to be fully protected with air gaps in place..."
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