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 Humans of New York image of crying gay teen receives best response from Ellen DeGeneres
- 2 What supermodels really think about posing in the nude
- 3 People all over the world are getting semicolon tattoos to draw attention to mental health
- 4 Swedish minister gives strongest case yet on why EU should stop turning away asylum seekers
- 5 Chris Moyles reportedly set to make radio comeback with new breakfast show on XFM
Humans of New York image of crying gay teen receives best response from Ellen DeGeneres
Greece debt crisis explained: A history of just how the country landed itself in such a mess
Swedish minister gives strongest case yet on why EU should stop turning away asylum seekers
Isis schoolgirl Amira Abase who fled London to join terrorists in Syria mocks victims of Tunisia massacre
Father faces deportation to Thailand after 27 years in Britain for two 'stupid crimes'
More Britons believe that multiculturalism makes the country worse - not better, says poll
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Osborne to cap family benefits at £23,000 – announced ahead of his post-election Budget
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
iJobs Money & Business
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...
£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...