Technical problems hit Psion's margins
Psion shares fell more than 5 per cent yesterday on the back of a profits warning after admitting technical hitches with its core Teklogix business.
Earlier this year Psion sold its stake in Symbian, the mobile phone operating system business, to focus on Teklogix, which makes rugged mobile computing devices for businesses such as ports, warehouses and the logistics industry.
Although Psion has £98m in cash thanks to the Symbian stake sale, its chosen core business is suffering a serious hiccup. Psion said there had been "a number of technical challenges" in the introduction of new products, with some delays in shipments. There would be short-term margin pressure as a result. "Accordingly the board now expects that the result for the current year from Psion Teklogix is likely to be somewhat lower than previously expected," Psion said in a statement.
Analysts had been expecting second half profit margins of about 7.5 per cent on sales of about £130m. Margins are now forecast to be flat.
In September Psion said it would be replacing Norbert Dawalibi as president of Teklogix. Alistair Crawford, the chief executive of Psion, will now be focusing on Teklogix full time, the company said, although Mr Crawford will also be evaluating acquisition targets.
- 1 Autism 'caused by genetics', study suggests
- 2 What happens to your body when you give up sugar?
- 3 Why you should never make assumptions about people with autism
- 4 Tourist films plane's descent just metres above packed Caribbean beach
- 5 Have sex with your iPad thanks to the new sex toy no-one asked for
Tourist films plane's descent just metres above packed Caribbean beach
Bali nine: Welcome to 'Execution Island' – the Indonesian holiday resort where foreigners are sent to die
How Homer Simpson discovered the Higgs boson over a decade before scientists
The 'sex selfie stick' lets you FaceTime the inside of a vagina
Harrison Ford plane crash: Star Wars actor 'seriously injured' after light aircraft crash lands
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
End of the licence fee: BBC to back radical overhaul of how it is funded
Ex-head of MI6: 'We shouldn't kid ourselves that Russia is on a path to democracy'
Most people think legal tax avoidance is just as wrong as illegal tax evasion, poll suggests
Nigel Farage promises Ukip will not 'stigmatise' would-be migrants – and says he wants 'everyone to speak the same language'
iJobs Money & Business
£13000 per annum: Recruitment Genius: This is an exciting opportunity to join ...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
£8 per hour: Recruitment Genius: This Pension Specialist was established early...
£30 - 35k + Bonus & Benefits: Guru Careers: We are seeking an Executive Assist...