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Disappointing first half for Psion as sales decline

By BFN News | 07:21 AM | Thursday 11 August, 2011


Psion said revenue for the first half-year to end-June amounted to £81.4m (2010: £84.7m). On a constant currency basis revenues for the first half of 2011 are 1.7% lower than a comparable figure of £82.8m for the first half of 2010. The reduction half on half is primarily attributable to the impact of the deferred and lost sales opportunities arising from supply chain issues in respect of one legacy product that caused shipments towards the end of the half to be delayed. These issues have now been resolved and shipment of the product resumed. Orders booked in the period were 7% higher at £82m (2010: £76.4m). On a constant currency basis orders booked were 10% higher than the first half of 2010. The closing order book value at end-June was 8% higher at £34m (2010: £31.4m). Gross margins achieved of 38.2% were consistent with the rate achieved in the full year 2010. Gross margins were below the 39.6% achieved in the same period last year and this coupled with the lower revenues resulted in gross profit of £31.1m (2010: £33.5m). Operating expenses (before exceptional operating costs/credit) were £32.4m (2010: £29.2m). The operating result for the half, after exceptional items, was a loss of £5.2m (2010: Operating profit of £4.8m). Psion is maintaining the interim dividend at 1.3p per share. John Conoley, CEO, said: "We had a disappointing first half from a financial perspective, however we put in place the building blocks for a successful second half. The launch in the first half of our EP10 product into the fast growing rugged PDA segment of the rugged handheld market place is a significant step for the Company as evidenced by the strong initial orders for the device in Europe. The US roaming variant launched at the same time is now completing initial carrier certification for imminent shipment. This allows us now to access the large and strategically important US market place for these products that we have not previously addressed. We believe that this positions the Group well to deliver profitable growth in the second half." Story provided by StockMarketWire.com