Monday 19 July 2010: For Immediate Release
PSION PLC
Psion PLC, the mobile computing solutions company, today releases a period end update for the half year to 30 June 2010, in advance of publishing its interim results on Thursday 12 August, 2010.
The Company continues to perform in line with expectations on a constant-currency basis.
Operational and financial performance
The trend of improvements in sales activity reported previously has been maintained, with the re-emergence of some sizeable prospects and orders. The company has won several large new orders during the first half of the year. Examples include the Ministry of Transportation and Roads in Romania, the Casino retail business in France, South Survey in China, and General Motors in America, all of which delivered orders in excess of €500,000.
We have seen a reduction in delivery lead times in the first half and our sales pipeline suggests continued improvement in activity levels in the second half of 2010.
As has been previously well disclosed, a factor beyond the Board's control is the ongoing effect of exchange rate movements on Psion's business. The effect on reported profits is being mitigated by our ongoing hedging programme and actions we will continue to take with our customers and suppliers. However the impact on the second half will be material and in line with recently updated market estimates based on current exchange rates.
The company has maintained a strong balance sheet despite previously disclosed investments in its research and development activities and marketing, with net cash balances at the end of June of approximately £40m, in line with £39.9m at the end of June 2009, and down from £45.3m at the end of December 2009.
New product development and launch activity
We are making the previously announced investments in enhancing our product portfolio to widen our addressable markets. The launch of our first, new modular product remains on schedule for release in the third quarter of the year, following promising feedback from field testing with customers and partners
Further launches of modular products, and CDMA wireless variants, are on budget and on track for delivery commencing in the first half of 2011 as previously announced.
We are also pleased to announce the accelerated launch within existing budgets of the first of a lower-cost PDA product family to widen our addressable markets. This product will be marketed under the Psion brand, initially in China, in the fourth quarter of 2010. This is the first clear validation of our new modular development process and its ability to improve the speed and reduce the cost of Psion's product launches.
John Conoley, Psion CEO, said:
"The Board expects moderate revenue growth in 2010 as a whole as customer demand improves and we begin to see the benefits of implementing our strategy of Open Source Mobility.
"The Board is increasingly confident that Psion is well placed to deliver strong growth in the years ahead, as a result of the actions we have taken fundamentally to reposition the Company and redesign its products and services."
For further enquiries, please contact:
Brunswick +44 (0) 20 7404 5959
psion@brunswickgroup.com
Tom Buchanan, Craig Breheny, Michelangelo Bendandi
Notes to Editors
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Psion (PON.L) is listed on the London stock market. Its operational business, Psion Teklogix, is a global provider of solutions for mobile computing and wireless data collection. The Group's products and services include rugged mobile hardware, secure wireless networks, robust software, professional services and exceptional support programs. Psion Teklogix is committed to helping its customers reap the benefits of new and emerging technologies, including image capture, voice recognition and RFID. With over three decades of industry experience, Psion Teklogix has customers in more than 80 countries around the world. For further information, please go to: http://www.psionteklogix.com
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The information in this release is based on management information.
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Certain statements in this announcement are forward looking statements. Such statements are based on current expectations and by their nature are subject to a number of risks and uncertainties that could cause actual results and performance to differ materially from any expected future results or performance expressed or implied by the forward-looking statement. The information does not assume any responsibility or obligation to update publicly or revise any of the forward-looking statements contained herein.
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