Global communications network specialist Norcon has reported a 20% decline in first-half pretax profit as revenue fell, but claimed to be making good progress in its strategic expansion in the markets. In addition, other sales and operational costs were impacted by additional sales and marketing expenses.

For the first half, profit before tax was dropped to US$4.10 million from US$5.24 million in last year. Norcon’s first- half pretax profit fell to $4 million from $5 million a year earlier. It paid $2 million in operating and administrative costs compared with $1.8 million a year earlier.

Profits for the half year were US$2.78 million, lower than US$3.68 million a year earlier. Pro forma earnings per share were US$0.06 from US$0.07 last year. Turnover for the six months dropped to US$34.24 million from US$37.35 million in the previous year.

Separately, the company announced that it has inked a contract with Norway-based telecommunications firm Ventelo, to provide assistance in designing and implementing operating support systems for the company.