Psion hit by by supply chain woes

Mobile computing services provider Psion forecast a loss for the first half and saw 2011 to be below its estimates mainly due to supply chain issues and a weak pound.

The company, which provides a range of rugged handheld computers, said its revenue for the first half ended June is expected to be about four per cent below last year.

"The impact of these factors together with the development and launch expenses for the new EP10 product (its new enterprise PDA device) will result in Psion reporting a loss in the half of about £4m, compared with a profit of £700,000 a year ago," the company said in a statement.

However, Psion, which competes with US-based Intermec, said the shortfall in the first half would be partly mitigated by the new, lower cost, rugged PDA device (EP10) and CDMA (roaming technology for the United States) products.

Hardware orders booked in the first half are 16 per cent ahead of last year on a constant currency basis, said the company whose clients include carmakers Volkswagen and BMW.

Psion shares have gained nearly a quarter of their value over the past year.