Imsat Bucuresti posts losses of 7.9 billion lei

Electronic enterprise Imsat Bucuresti registered net losses standing at eight billion lei on the first quarter of this year, over four times higher as compared to the similar period of last year, amid turnover worth 45 billion lei, 1.3 times higher. However, things might change during this year, company officials stated.

“The late adoption of the budget determined a shrink or even blockage of activities developed by some important customers such as SNCFR (National Railway Company), and this fact had direct effects over cashing-ins,” they say.

During the period taken into account, the company posted revenues totaling 51 billion lei, 10 billion lei higher, while total expenditures amounted to 59 billion lei, 16 billion lei up, shows the economic bulletin of the company, sent to the Bucharest Stock Exchange.

“On the other hand, due to the fact that companies no longer have sufficient funds, we prefer self-financing our works. This reflects over our balance, but the situation will change during this year,” company officials maintain. On the first three months of this year, stocks exceeded four billion lei, rising from 2.1 billion lei, during the similar period of last year.

Against an average exchange rate of the dollar of 12,500 lei during the first quarter of 1999 and of 18,800 lei in 2000, the company registered a drop in its operating revenues from 3.21 million dollars to 2.66 million dollars, while operating expenditures posted a fall from 3.06 million dollars to 2.99 million dollars. Double material expenditures, from 9.8 billion lei to over 20 billion lei were one of the reasons that determined the increase in the company’s expenditures. The company has customers such as MobiFon, Mobil Rom, Lafarge or Cosmorom. Its share capital stands at 35.2 billion lei, divided into shares with a face value of 1,000 lei. The company’s significant shareholding structure includes Avobone NV with a stake of 6.03 percent, Romanian Investment Co. Cyprus Ltd. holding a stake of 6.26 percent, Romanian Investment Fund Cyprus Ltd. with 27.04 percent, High Enterprises Ltd. with 5.57 percent and Danube Fund Ltd. with 6.22 percent.

Imsat stock has been traded on the second tier of Bucharest Stock Exchange (BVB) since March 31, 1998, under the symbol IMS. The company’s bourse capitalisation on March 9, 2000, stood at 98.69 billion lei and accounted for 1.31 percent of BVB total capitalisation of 7,488 billion lei. The company’s object of activity is electronic and electro-technical production.