The video security supplier's said exchange rates were the principal cause.
Companies: Indigovision Group
IndigoVision (LON: IND) interims out today which show a slowdown in revenue and an increase in loss margin, which has sent shares down 20% in early trading.
Revenues were $20.4m, down from the $21.8m in the same period last year, while losses grew marginally to $0.7 from the $0.3m reported in H1 16.
Gross margins were also marginally down at 51% versus 52% in H1 16.
The Group said the slowdown was "principally as a result of both sterling and the euro weakening against the US dollar year on year."
The volume of cameras sold in the period increased by 11%, but at lower average selling prices, Management said.
IND is also undergoing a "major" change in its North American operations, including expanding their sales teams and changes in management.
Singers today upgraded their forecasts as a result of the interims, saying:
"We have reduced FY17 expected sales from $50m to $48.5m and forecast PBT from $1.5m to $1.3m. No change to FY18 forecasts."
IND currently has a market cap of c. £19m and trades at a PE ratio of 11x versus the industry median of 14x.
Revenue CAGR has been relatively flat for the five years to 2016 at -0.1%, while Operating Profit CAGR was -50% for the same period.