Bianor posted 336,000 leva (171,800 euros) net loss for the period, against 166,000 leva (84,900 euros) profit booked for the corresponding period of 2007. The net cash flow of the company was positive (36,000 leva) in the first quarter of the year, compared to a negative (-172,000 leva) cash flow for the year ago period.
Bianor's unsatisfactory financial results may be attributed largely to one-off expenses and non-specific costs, according to Kostadin Yordanov, executive director of the company. Bianor completed an employee stock-option program worth nearly 60,000 leva in the first quarter of the year. The company also posted an 84,000 leva loss from investments in the stock market in the period.
Other factors include the weak US dollar and the fact that the output capacity at the major subsidiary Bianor Services is not fully utilized, Yordanov added.
Bianor Holding established in the middle of May a joint venture company, dubbed TechniData Labs Bulgaria, as part of its investment program. Bianor owns a majority stake in the new company, which is expected to generate 1 mln leva revenue in 2008. The figure is forecast to double in 2009.