Losses soar to €7.6m at Cork HQ of wireless technology company

Losses at the Cork-based global operations headquarters of the Option Wireless group continued to mount last year.

New accounts show that Option Wireless Ltd recorded a pre-tax loss last year of €7.6m following pre-tax losses of €2.8m in 2010.

The figures show that losses increased almost threefold at the firm after revenues plummeted from €45.1m to €16.3m.

The firm’s restructuring plan — initiated in 2009 when 240 people were employed at the company’s plant at the Kilbarry Industrial Estate in Cork — was completed last year, with the numbers employed reduced to 26 at year end.

The reversal of fortunes for Option Wireless has been sharp and sustained — only in Dec 2008, the Belgian parent company announced the addition of 145 high-quality production jobs at its Cork plant over the following three years.

The principal activity of the firm is the manufacture and sale of wireless telecommunications equipment.

The filings show Option Wireless recorded the loss last year after cost of sales totalled €18.7m and administrative expenses amounted to €5.8m.

The directors’ report states: “The board of directors is of the opinion that, notwithstanding the losses made in the last three fiscal years, the use of the going concern valuation rules is justified.

“Nevertheless, the company’s recent operational losses and the current trading environment could materially adversely affect its business and financial position.

“These losses might cause the company to have to implement further costcutting and restructuring measures which require the company to reprioritise the uses to which its capital is put to the potential detriment of its business needs, which could result in reduced funds being available for the operation of the company’s losses.”

Option Wireless had a shareholders’ deficit of €6.9m last year.