MARKHAM, ON – Network communication solutions provider Cygnal Technologies Corp. recorded another multi-million dollar loss in the fiscal year ended December 31, 2006, but the loss wasn’t as deep as 2005.
Despite recording a $17.6 million net loss in 2006 – compared to a net loss of $27.6 million a year earlier – company officials said Friday they expect the expanding adoption of new technologies such as IP telephony to lead to growth at both its communications services and network services operations.
Cygnal is an equipment supplier to cable and telecommunications companies through its White Radio distribution unit and a contractor that does install and maintenance for cablecos through its network services division.
The 2006 net loss included a $5.2 million goodwill impairment charge, while the 2005 net loss included an $8 million impairment charge and a $5.2 million future income tax asset write-down, according to financial results resulted Friday.
Overall, revenues were down 3.3%, or by $4.1 million, to $121.7 million in 2006.
But income at the communications services segment increased $7.2 million to $57.1 million, driven by new product lines and strong growth in its wireless and audio segments.
Revenues at the network operations segment declined by $11.3 million to $64.6 million due to the completion of the Niagara Regional Broadband Network contract early in the year and lower MAC (move, add and change) and maintenance revenue.
