Rodime, the world's first manufacturer of 3.5in floppy disk drives, has seen interim pre-tax losses increase to $990,000 (#604,000) from $651,000 (#397,000) for the same period last year.
Operating income for the Glaswegian firm fell from $1.5 million (#900,000) to $129,000 (#79,000) in the six months to 31 March, as shipments to an important US licensee, which the company refused to name, have decreased.
Rodime managing director Peter Bailey said only: "One of our licensees reduced the shipments of disk drives into the US, therefore our licensing revenue has been reduced."
Rodime is involved in a long court case with drive manufacturer Seagate, which Rodime alleges illegally used its drive patents. The case, which was first brought six years ago, was dismissed by one US court, and Rodime is now appealing that judgement. The company is confident of winning the appeal.
If Rodime's appeal is unsuccessful, however, the effect could be to impair the company's ability to procure new licences in relation to the intellectual property in its patent portfolio.
However, Bailey denied that the company needs to win the case against Seagate in order to continue in business.
"We have spent several million dollars in court already, but if we do lose there are still a lot of options for us," he claimed. "We have other licensing alternatives. However, although we are still in a limbo situation, as we filed an appeal with the federal appelate court and expect the result this summer, we feel very confident we could still win. Obviously we cannot predict the outcome of US trials."
He agreed that it was not impossible that the company may be bought out.
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