Stratech Systems updates on its efforts to get back into the black

Technology firm Stratech Systems is engaging potential customers as it tries to get itself off the Singapore Exchange watch-list.

It had placed on the watch-list in June 2013 for reporting three consecutive years of losses.

The company issued a statement on Tuesday night to update shareholders on its plans to get out of the red.

On Sept 30 2013, Stratech said it won a contract to deploy airfield and runway surveillance among other services to an airbase. The project was expected to have a material impact on its topline for the 2014 financial year.

Stratech said it will continue to engage potential customers - including airports of various countries - and build on its channel-partner network to grow its global reach.

In its business update, the company said it is pursuing several tenders, but may experience delays in getting awarded the contracts due to the global economic slow-down and delay in recovery.

The company expects its administrative and other operating expenses to fall from earlier quarters as it pursues cost containment efforts.

These combined efforts will help improve its profit margin and cash flow.

Stratech shares closed up 0.1 cent or 6.67 per cent to 1.6 cents on Tuesday, before the announcement was made.

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