Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Psion teams up with Motorola

Gail Counsell
Wednesday 02 September 1992 23:02 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

PSION, the British hand-held computer manufacturer, yesterday disclosed separate strategic alliances with Motorola, the giant American electronics group, and Acorn, the British educational computer specialist.

But the news failed to distract the City from disappointing pre- tax profits of pounds 1.05m in the six months to 30 June, compared with pounds 270,000 a year earlier. The shares, which surged earlier this year to a high of 209p on expectations about the company's award- winning Series 3 product range, lost a further 5p to close at 99p.

Turnover rose 43 per cent to pounds 16.5m, primarily on the back of Series 3 sales which now account for up to half of Psion's turnover, but the company acknowledged that the recession was taking its toll on corporate capital expenditure and profits were being trimmed as a result.

Sales to British corporations - usually the high-margin end of its business - proved especially weak. The company admitted its return on sales of 6.5 per cent was below its target of 10-12 per cent.

Gearing at 37 per cent is higher than the directors would like, but with the peak summer season out of the way, they expected a substantial cut in borrowings by the year-end.

The agreement with Motorola means that Psion computers will form the core of a hand-held terminal that will enable mobile workers to keep in touch via radio.

The Acorn deal - an original equipment manufacture agreement - is for Psion to supply its specially adapted palmtop computers for use in the education market. The device will be marketed from October as the Acorn Pocket Book.

Dr David Potter, Psion's chairman, said profits were lower than he had hoped to achieve a few months ago. 'We can see our return on sales improving over the next 18 months'. Psion is maintaining the interim dividend at 1p.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in