Psion profits warning

Shares in Psion, the hand-held computer firm, fell sharply after the company warned that full-year results would be well below expectations.

Shares in Psion, the hand-held computer firm, fell sharply after the company warned that full-year results would be well below expectations.

It blamed the the euro's weakness, rising component prices and the cost of integration costs of its acquisition Teklogix, a Canadian rival. Gross margins had eroded by two per cent in the second half of the year.

Twenty administrative and sales jobs are being cut out of 80 at Psion Connect's Milton Keynes facility. Psion Connect makes modems that are inserted into personal computers and sales are falling as more laptops are sold with embedded modems.