One Horizon Group Inc (NASDAQ:OHGI)
One Horizon Group Inc (NASDAQ:OHGI), a leading provider of mobile VoIP software for operators of telecommunications, recently announced its financial results for the year ending December 31, 2016.
For the year ended December 31, 2016, the company’s revenue amounted to around $1.6 million compared to around $1.5 million that was reported for the financial year ended December 31, 2015. This represents a $0.1 million or 5% increase. The increase is attributed to the rise in B2B business mainly in the Asian region. The company reported approximately $0.1 million for the last financial year in cost of revenue for hardware charges and hardware calls. The company reported approximately the same figure for the year ended December 31, 2015. The company’s cost of sales was mainly due to amortization of software development costs as well as network charges, costs of hardware, and calls.
Gross profit for the year ended December 31, 2016 amounted to around $1.5 million in comparison to around $1.4 million reported in the previous financial year. The company reported a 6% increase in its gross profits from what was reported the previous financial year. The increase is a result of increase in B2B business – mainly in Asia.
Operating expenses comprised of research and development expenses, allowance for doubtful accounts, general and administrative expenses and amounted to around $4.4 million or 272% of revenue compared to around $4.9 million, or 322% of sales for the year ended December 31, 2015. This translates $0.5 million decrease.The decrease in expenses is attributed to reduction in allocations for doubtful accounts amounting to $0.4 million in the last financial year relative to the previous financial year. General and administrative expenses amounted to around $3.3 million for the last financial year compared to around the same amount reported in the previous financial year.
The company reported around $5.5 million in net loss for the year ended December 31, 2016 compared to $6.3 million in net loss reported for the previous financial year. The company’s management is expecting to raise a growth in the company’s revenue basing on the launch of its products in Africa, Asia and Latin America regions. The company’s management is also optimistic that the company will continue to expand its business and grow its profit margin. In addition, the company is also counting on the sale of its B2C service to Chinese end users.
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About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.