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. Last Updated: 07/27/2016

Sitronics Posts $80M Net Loss

High-tech company Sitronics reported Wednesday a first-half net loss amid project delays and cut its full-year outlook for revenue growth, sending its shares down as much as 9 percent.

Sitronics, part of services conglomerate Sistema, said in a statement that it had made a net loss of $79.8 million versus a profit of $15.9 million in the first half of 2006.

It said revenues fell by 6.4 percent to $638.3 million from $681.7 million in the first half of last year.

"As expected, our results in the first half of the year continued to reflect difficult market conditions in the telecommunications solutions segment as we saw a number of key projects being delayed into 2008," Sitronics president Yevgeny Utkin said.

Utkin said Sitronics had revised its full-year 2007 revenue forecast to $1.6 billion to 1.7 billion from $2 billion previously.

He also said operating income before depreciation and amortization was seen close to break-even.

In the first half of 2007, Sitronics posted an operating loss before depreciation and amortization of $38.6 million, compared with a profit of $70.3 million a year ago.

Vladimir Yevtushenkov, the majority owner of Sistema, said Tuesday that the holding company had no plans to sell Sitronics, despite its poor performance in recent quarters.

"Taking into account that Sistema is the largest player of the nonextracting sector and the largest high-technology company in the country, Sitronics for us is just like Samsung for the developing South Korea," Yevtushenkov said. "It has never been a question, to sell Sitronics."