Psion Plc, London-based manufacturer of portable computers and developer of software, announced strong interim results showing pre-tax profits rocket 173% to UKP2.9m on turnover of UKP28.3m, up 56.6%, as the company enjoyed strong demand for its Series 3 and 3a palmtops in Europe and the US. In its last full year results, the company had said that demand for the 3a had outstripped supply. This deficit has now been remedied with the opening of a new manufacturing plant in Greenford, Middlesex. The company has four major product families: the Series 3 and 3a, HC Corporate Products, the Organiser and Datacommunications Products. Sales of the Series 3 and 3a were up 105% at UKP16.7m, with particular growth in the US, where Psion now has over 1,500 retail outlets, with recent distribution contracts Radio Shack and Office Depot Inc. The HC Corporate products saw revenue growth of 91.5% to UKP3.6m, as the range and sales of radio terminals in conjunction with Motorola Inc picked up. Data communications products including the high-speed PCMCIA modem, manufactured by the once problematic Psion Dacom, had sales up 84.5% at UKP3.69m. Even a 15.3% slip in the sales of the 8-bit Organiser II to UKP4.0m, was heralded as a success, as Psion expected a much faster slide into dotage for the 1986 vintage architecture. The core area of Psion’s business remains the UK, 29.7% of turnover, which enjoyed 81.8% growth to UKP8.4m, while the US was up 41.2% at UKP2.9m, 9.8% of the total. Growth in the US would have been greater, according to the company, but it was hampered by the failure of other manufacturers’ pen-based products, which forced retailers to re-organise. The phenomenon of the Personal Digital Assistant initially served to alert retailers to category of the personal organiser, appointing buyers and providing shelf space, to the benefit of Psion and its rival product. Unfortunately Psion has also suffered with the failure of the pen-based assistant, as retailers are now very cautious about the category, resulting in a six month hiatus in the merchandising strategy. Economic conditions on the continent continued to improve, and sales were up 61% in UKP2.7m. Research and development expenditure was up 52% at UKP1.43m, 5% of total turnover, as compared with 4.6% last time. The company will pay an interim dividend of 1.1p up 10%. Unsurprisingly, the shares reacted with whoops of joy to the results and an upbeat statement on the second half from David Potter, chief executive, and added 15 pence at 289 pence.
