Psion says trading meets forecasts

Sales projections

Trading is in line with management expectations at Psion, with the company stressing that it has cash resources "more than sufficient to support investment in both Symbian and organic development at Psion Teklogix".

In a trading statement issued today, the mobile company points to £22m in cash at the end of November 2002 (Nov 2001: £15m). Its handhelds-for-warehouses unit, Psion Teklogix, continues to generate profit, despite the technology spending downturn
generating profit. The group says it expects a second half-year turnover, similar to the first half, when it reported revenues of £59.7m and operating profits of £3.1m. It doesn't give a profits forecast, but it is almost certain the company will make a pre-tax loss in the second half.

What else? Psion says the winding up of Psion Digital is proceeding according to plan, and it is tidying up the balance sheet in the second half by taking a non-cash charge of £3m to write down the value of minority investments.

The big money for Psion will come when the royalties start coming through on Symbian OS smartphones. The company acknowledges that this will require sales of 15-20 million handsets a year before royalties outweigh the costs of supporting Symbian. ®

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