Mobile data computing group Touchstar swung to a first half loss after its revenue slid by almost a fifth.
Pre-tax losses for the six months through June amounted to £415k, swinging from a profit of £5m on-year.
Revenue fell 19% to £3.2m, which the company pinned on the adoption of new accounting standards, older products reaching the end of the their life and a 'slow start' at its Access Control Systems business unit.
Chairman Ian Martin said the company was 'on track'.
'As with last year, this year's trading is expected to be second-half weighed and, with the momentum that we have, the board remains confident of meeting expectations for the year,' he said.
'That achievement alone will not determine our future as the real benefit of the investment we are making is not expected to flow until next year and beyond. Importantly, we are satisfied with our progress so far.'