Psion warns that downturn in modem sales will hit profits
Thursday 11 February 1999
The warning wiped 12 per cent off Psion's shares, puncturing the euphoria surrounding Symbian, its software joint venture with Nokia, Ericsson and Motorola, that has propelled its shares to new highs in recent months.
Psion said manufacturers of portable notebook computers had started installing "embedded" modems - communications devices that are built into the computer's circuitry - earlier than expected.
The move would "severely affect" sales of Dacom's plug-in card modems, which have enjoyed strong growth in demand in recent years. Psion shares closed at 832.5p, down 115p.
"We saw it coming, but it happened faster than we predicted," a Psion spokesman said. In the six months to last June, Psion sold over 300,000 card modems, more than double the amount it sold in the same period of 1997.
The company said it had been developing new products to offset the predicted fall in demand for card modems, but that these would not contribute to profits until the second half of the year.
Dacom is concentrating on producing PC cards which are capable of connecting portable computers to mobile phone networks or of delivering data over high-speed telephone lines.
City analysts slashed their 1999 profit forecasts for the company from pounds 12m to pounds 10m. They added that the warning did not affect the company's 1998 results, due to be released in March, which are likely to show pre-tax profits of about pounds 11.4m.
- 1 Liam Gallagher brands Kanye West 'utter s**t' during BRIT Awards performance
- 2 Isis burns thousands of books and rare manuscripts from Mosul's libraries
- 3 People who sleep more than eight hours are more likely to have a stroke, research shows
- 5 New theory could prove how life began and disprove God
Ukraine crisis: Putin will cut gas to Europe unless Russia is paid by the end of the week
Liam Gallagher brands Kanye West 'utter s**t' during BRIT Awards performance
Isis burns thousands of books and rare manuscripts from Mosul's libraries
Mohammed Emwazi: Nine things we now know about man named as Isis militant 'Jihadi John'
Kanye West climbs on table at Nando's to crowd chants of 'Yeezus' before Brit Awards 2015 performance of 'All Day'
Oscars 2015: Birdman beats Boyhood as Eddie Redmayne and Patricia Arquette win big - as it happened
New theory could prove how life began and disprove God
Half of Ukip voters say they are prejudiced against people of other races
'Cash for access' scandal: Sir Malcolm Rifkind says 'unrealistic' for MPs to live on £67,000 salary
Aqsa Mahmood branded a 'disgrace' by her parents after claims she recruited three UK girls flying to Middle East
Russia's roadmap for annexing eastern Ukraine 'leaked from Vladimir Putin's office'
iJobs Money & Business
£17000 - £25000 per annum: Recruitment Genius: An opportunity to join this new...
£18000 - £21000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£36000 - £44000 per annum: Recruitment Genius: Encouraging more businesses to ...