Rapid Technology, the Dublin-based company founded by technology entrepreneur Mr Pat McDonagh, who also founded e-learning firms Riverdeep and SmartForce, yesterday reported a pre-tax loss of €920,000 in the six months to the end of 2002.
The company, which develops screenkey technology for the retail sector, blamed a weakening dollar and a shipment delay for the loss, which was up €9,000 from the same period in 2001.
Turnover in the last six months of 2002 fell to €1.2 million, down from €1.7 million in the same period in 2001. Total revenue generated by Rapid Technology in 2002 was €3.3 million
Mr McDonagh, chairman of Rapid Technology, said the group had continued its strategic plan to rebuild the company as outlined in its annual report.
This plan includes Rapid Technology's proposed €15.5 million takeover of Dublin-based firm Electric Paper, which develops technology and courseware in the e-learning sector.
Rapid Technology has also agreed to license its screenkey technology to SK Interfaces, a firm established by two of its former directors.
The acquisition of Electric Paper will transform Rapid Technology into an e-learning firm. It will also significantly increase the company's annual turnovers.
Rapid Technology has struggled to make an impact on the retail market for its technology.
Its results show the company made a pre-tax loss of €1.7 million during 2002. It also increased its net debt by €523,000 in the last six months of 2002, pushing the group's total debt to €5.9 million.
Mr McDonagh said Rapid Technology's overall order book remained level year-on-year.
Gross margins at Rapid Technology improved to 34 per cent in 2002, up from 29 per cent in 2001. Net operating expenses reduced by 23 per cent to €934,4000 during 2002.
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