Technology solutions company Hills Limited has seen a fall in revenue for the first six months of fiscal 2017, recording a figure of $157.3 million compared to $164.1 million for the corresponding period in the previous fiscal year.
It blamed the dip on competition from Chinese brands which it said were affecting low-end CCTV sales, and reductions in antenna volumes due to changes in the distribution model of a major customer.
Also taking the blame were the end of Cesstron separation income and the lack of income from its O'Sullivan Beach properties which were sold in the fiscal year 2016.
Servicing its contract with Ericsson has incurred higher costs as well, the company said in a media release. Hill has a contract with Ericsson to supply home installation services for the NBN's fixed wireless and long-term satellite products.
{loadposition sam08}The company said it had reduced its net debt from $24.2 million at the end of June 2016 to $20.9 million at the end of December 2016.
New chief executive David Lenz said the focus in the second half of the fiscal year would be on growing the Hills business implementing a new digital transformation project and delivering improved customer service.
The company said it had signed a contract with UTC Fire & Security to help it compete in the low-end CCTV market and returned its antenna business to the sales levels seen in the second quarter.
It also said it was continuing to work with Ericsson on sorting out delivery-related issues and cutting back on costs.
An additional measure taken was cutting operating expenses in Q2 by an annualised $4.8 million as management structures were flattened and corporate overheads cut back.