News

Touchscreen manufacturer says earnings won't meet expectations

February 13, 2003

LONDON -- Zytronic, the UK-based manufacturer of touchscreens for ATMs and kiosks, has warned that its financial results will fall below market expectations.

The company blamed a sluggish market in which customers have been slow to place orders, according to a report in the Newcastle Evening Chronicle.

Zytronic chairman John Kennair had warned that progress in the business would not boost revenues until late this year because of a faltering electronics market and long sales cycles for new products.

He said, "Since my statement, the electronics sector has shown no signs of picking up and it remains the case that potential customers are slow to place orders."

However, he said, year-to-date sales for 2003 are ahead of the same period in 2002.

"The directors also expect to see an improvement in trading in the traditionally stronger second half, but it is unlikely that our results will meet current market expectations," Kennair said.

Zytronic suspended dividend payments to shareholders in December 2002. Kennair said that while the cash position was strong, the company had been unable to build up significant distributable reserves.

The company reported a net loss of 394,000 pounds (about $634,654 U.S.) for 2002, on revenues of 635,000 pounds (about $1 million).