SINGAPORE (Dec 22): Global Invacom Group has issued a profit warning in anticipation of reporting a net loss for FY16, primarily due to the consolidation of its manufacturing operations in China.

In a Thursday filing to the SGX, the satellite communications provider says it expects to incur one-off shutdown expenses of approximately US$3 million ($4.3 million) for the closure of Radiance Electronics (Shenzhen).

According to Global Invacom, the consolidation will “translate to improved gross margins and operational cost efficiencies” in FY17 and beyond.

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