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Oxford Metrics has warned that it may face an operating loss of 0.5 million Pound to 3.9 million Pound for the current financial year. The British technology company’s declined result is driven by factors like spending cuts, studio consolidation across the film and TV industry and tighter research budgets.
Recent reports have highlighted that the company’s shares have fallen nearly 15% after its warning of loss on October 9. The company had earlier expected an operating profit of 3 million Pounds, but its Vicon business, which makes motion-capture systems for digital characters and visual effects, has seen major contracts delayed.
Oxford Metrics is looking at new ways to support its business. It plans to buy Move AI, a company that uses AI to capture human movement without traditional markers. The deal is worth 525,000 Pounds. Oxford Metrics is also cutting costs, reducing jobs and dropping products that bring in lower profits. Demand from robotics customers remains stronger, giving the company another area to focus on.
The warning shows how cuts in entertainment spending can affect technology firms. Film and TV studios are trying to lower costs, while demand for virtual production has weakened. This has delayed some major Vicon contracts. As a result, Oxford Metrics is finding it harder to make up for slower sales in one market with stronger demand in another.
Oxford Metrics serves customers in entertainment, research, engineering and manufacturing. Having several markets can help a company spread risk. However, it offers less protection when many customers cut spending at the same time. Robotics demand and some Asian markets are holding up better, giving Oxford Metrics other areas to pursue.
The planned Move AI deal could also help it offer more flexible motion-capture tools. However, new technology alone will not solve the problem. The company needs to turn these tools into sales while keeping costs under control.
Oxford Metrics still has room to grow beyond traditional motion capture. Its next challenge is to find more customers for its newer tools and bring delayed projects back on track. Until then, weak spending will remain a concern.
