While the company said it has had a good reaction to the introduction of a new range of products at its Psion Teklogix operation, and the order book is encouraging, it said there have been a number of technical challenges.
These relate to the complexity of making all product options available to customers, with some delays in shipments and short-term margin pressure as it seeks to meet delivery timetables. Psion said the consequence is that gross margins will be hit by these inefficiencies until the introduction phase for these products is completed until the end of the year.
Chief executive Alistair Crawford dismissed the difficulties as the kind of minor teething troubles commonly associated with rolling out new products.
Analysts expect revenue at the Teklogix operation to rise about 5% to 135 million pounds ($249.7 million) in the year to December 31, and operating profit of about 11 million pounds ($20.4 million). With net cash balances of 98 million pounds ($181.3 million) after selling its shareholding in Symbian earlier this year, Psion is on the lookout for acquisitions.
