Solomon Systech  has warned that its results for the year ending 31 December 2011 will be substantially lower than that for the corresponding period in 2010, and a net loss is expected.

The board considers that the anticipated incurrence of consolidated net loss of the group for the year ending 31 December 2011 was primarily attributable to: (1)lower than expected sales; (2)later than anticipated start of new products for volume sales; and (3)possible incurrence of fair value unrealized loss in the Group’s financial asset investments.

The company's annual results for the year ending 31 December 2011 are expected to be published before the end of March 2012.

The group said it had sequential sales decline with lower unit shipment in 2011. Cautious outlook for economic growth increased among customers with the lingering US high unemployment rate and European sovereign debt crisis. The group's sales experienced weaker than normal seasonal demand in the second half of 2011 as customers extended this cautious outlook beyond 2011. Sales of the group's new products was also adversely affected by the cautious outlook which translated into customer driven schedule delays and quantity reduction.