Supply Problems Cause Revenue Loss
Delayed product shipments are contributing to a loss in gross margins and revenue at SR Telecom Inc. The Canadian provider of mobile technology for broadband networks is facing supply chain problems as a result of outsourcing manufacturing operations.
The company’s new president, Serge Fortin, is confident that there will be a marked reversal of fortunes by the end of the year. All supply chain problems are expected to be sorted out, and deliveries will occur as per schedules. As cost-saving measures, unprofitable product lines and business units were discontinued. This helped re-establish supplier credit and get the supply chain back on track.
SR Telecom announced that it had reduced its net loss at the end of the second quarter by fixing supply problems from its contract manufacturers. The company’s net loss improved to $17.3 million during the three months ending June 30, from $30.7 million a year ago.
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