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Harris Technology Group’s (ASX:HT8) shares slide over declining revenue

ASX News, Consumer Discretionary
ASX:HT8      MCAP $2.393M
01 July 2022 15:55 (AEST)

Source: Harris Technology Group

Harris Technology Group’s (HT8) shares have slipped following the release of declining revenue results.

The company reported sales have been negatively impacted over the past nine months, with revenue moving from $15.1 million in the first quarter to $12.6 million in the third.

The decline was attributed to the easing pandemic restrictions and high cost-of-living impacting consumers’ spending on technology products.

It is expecting to see about 20 per cent revenue growth for the financial year, but it believes the high demand for technology products seen earlier in the year is no longer sustainable.

This drop in sales has resulted in HT8 reducing margins on certain product ranges to remain competitive, including graphic cards and gaming monitors.

To address the changing economic environment, Harris will diversify its product mix into higher-margin categories and sell across various marketplaces.

A net profit after tax loss is anticipated to land between $500,000 and $650,000. However, the board has insisted it has no intention to raise capital in the coming months.

Shares plummeted 26.7 per cent to 2.2 cents each at 3:13 pm AEST.

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