Results of Telemetrix Plc, High Wycombe, UK-based semiconductor manufacturer and telecommunications test equipment supplier, were skewed by the finances of GTI Corp, the San Diego, US networking equipment subsidiary. The company reported net losses for the year to December 31 1998 of 9.3m pounds down from profits of 3.3m on revenue that fell 20.1% to 93.2m. GTI was a millstone which Telemetrix finally managed to offload this year after protracted negotiations with Philadelphia-based Technitrol Inc, which tried to pull out of the deal when it realized what it was taking on (CI No 3,476). GTI still contributed losses of over 10m pounds which left Telemetric facing net losses of 9.3m pounds for the year. The rest of Telemetrix showed steady growth. Zetex, the division which manufactures analog semiconductors and Trend, the telecommunications test equipment sector, reported a sixth consecutive year of sales growth, expanded research and development budgets (3% to 6%) and increased operating profit margins, up 4% to 11%. CEO Tim Curtis said that Telemetrix was keen to move away from the commodity side of Zetex product range, which currently represents over 30% of its revenues, to concentrate on proprietary products. These offer longer-term sales potential and are easier to defend against large competitors like Motorola Inc and Philips Electronics NV. Other areas of future growth cited included portable equipment for semiconductors and broadband products for the burgeoning telecoms sector.
