BCO Technologies, the Belfast electronics company, has incurred a loss of £1.71 million sterling (€2.59 million) in the six months to June 30th, 1999. This is down from the loss of £1.75 million in the first half of 1998.

Shareholders were alerted to the losses, which are attributed to a 40 per cent reduction in sales to its main customer in Boston, in May. Sales to this customer are expected to grow later this year.

BCO said sales to other customers grew by 130 per cent between the second half of last year and the first half of this year. Overall sales fell from £1.17 million to £1.11 million.

Chairman, Mr Dermott Simpson, said the latest loss showed an improvement of £1 million over the second half "as a result of the cost-reduction measures the company has implemented".

It has commenced the sale of production material to two "bluechip" customers in the third quarter of this year and these customers are expected to move to full-scale production with BCO wafers by year-end, provided the final tests are completed satisfactorily. "This should lead to overall growth in turnover by the end of this year."

Since year-end, BCO has raised £1.6 million through a placing and open offer of new shares.

Part of its lease obligations were converted to equity, resulting in Comdisco United Kingdom taking a 6.8 per cent stake. The latest balance sheet, to June 30th, 1999, showed the need for the extra funding. Its shareholders' funds were cut from £4.2 million to just £360,000 and the deficit in the profit and loss account had risen from £8.55 million to £12.97 million.