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 NXT chief executive, Peter Thoms
The Cambridge company's year-end results to 30 June 2008 showed a five per cent increase in revenues, but more importantly a near 50 per cent reduction in losses to £2.2m, with chairman David MacKay describing the long elusive goal of break-even as being "within reach."
Sales for the year were £2.1m, compared to £2m in 2007.
With portable digital sound more in demand than ever and growth forecast across a broad spectrum of consumer electronics applications, the company said it is even considering re-engineering the business model for its loudspeaker activities.
MacKay said: "Having evaluated the supply chain for NXT components, we are currently testing opportunities in exciter distribution to verify whether greater margins can be generated through sales rather than from the current royalty model."
In the short to medium term, the company said the three markets of flat TVs, touch screens and portable speakers would drive growth. The flat TV market has grown by approximately 50 per cent in the last year alone according to Display Search, while IMS Research predicts that sales of small-size touch screens will grow to 230 million screens per year by 2012.
NXT singled out the US launch of the first SoundVu product, where the display screen is the speaker, as a key highlight for the year, with a European launch targeted for 2008.
And looking further into the future, the company is hopeful about the prospects for its "printed electronics initiatives" - specifically how they can be enhanced with loudspeaker, light, touch and haptic feedback technology - and "on-ear headsets," although the latter area is still the subject of ergonomic issues.
In addition to appointing a seasoned consumer electronics executive in Hong Kong to the board, another key operational development cited by the company was a move to a more compact approach to its key advisers.
Having moved to a smaller base at Cambourne business park, just outside Cambridge, the company has now appointed locally-based auditors, IP attorneys and corporate bankers to ensure "more contact on a face to face basis with our advisers."
NXT said it was close to agreeing the surrender of the last of three "onerous" and "cash draining" property leases, saving the company a total of £750k a year.
Chief executive, Peter Thoms said: "The current tough global economic climate has seen several major consumer electronics brands and retailers announcing poor results due to "challenging conditions". As a company committed to making its mark through establishing its cutting-edge technology in a mature marketplace, NXT has also found the present trading environment testing.
"NXT has market-ready technologies and we remain confident that our pipeline of developments, such as printed electronics initiatives and on-ear headsets, will produce income in the medium and long term.
"With the realigned cost base and elimination of cash draining leases, NXT will be well placed for its next period of growth."
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