WebTech Wireless, a supplier of GPS location-based and fleet-telematics services, reported a second-quarter loss of C$1.6 million compared with a profit of C$966,000 a year earlier.
Revenue declined to C$7 million from C$8.1 million the year before, the company said in a statement.
“We feel that the company’s sales are not reflecting their potential given the recent rollout of several new product offerings and technologies,” WebTech Wireless CEO Scott Edmonds said in a statement.
As part of its second-quarter earnings statement, the Vancouver, British Columbia-based firm reported it discovered almost a million dollars had been diverted from its now-defunct U.K. operations from 2009 to 2012.
“We are confirming that we have a liability of C$0.8 million at June 30, 2014, related to the fraudulently diverted funds, including interest,” Chief Financial Officer Trevor Greene said in a statement.
While we intend to attempt to recover the diverted funds through our crime insurance policy or other avenues, no provision for recoveries of the fraudulently diverted funds are included in these financial statements, nor are the costs of the investigation into the fraud. Such charges, and any potential recovery, will be recognized in future reports,” Greene said.