Psion's wireless handheld business stumbles

PSION IS struggling with the rump of its business, Psion Teklogix. It's experiencing problems with its supply chain and consequently increasingly outsourcing production to China.

The company is also seeking to make two new managerial appointments: - searching for a replacement for CEO Alistair Crawford and seeking a new COO for its Toronto operations.

The production problems have caused its Q1-Q2 2006 profits to nosedive from £7.3 million last year to £865,000. This is despite the fact that orders have risen by 18 per cent and reached record levels in June.

The company blames recent EU legislation which cuts the amount of metal that can be used in electronic products for a 42 per cent increase in development costs.

As one observer commented, Telogix's problems would be understandable if the company was a new startup but Psion has been in the handheld business for over ten years. µ

L'INQ
Teklogix