Supply chain issues leave Psion in the red
Psion, a leading manufacturer of rugged mobile handheld computers based in the UK, announced a 2 percent loss thanks in large part to supply chain issues surrounding delayed shipments on one of its key products
The British laptop manufacturer reported a half-year operating loss of £5.2 million (US $8.52M) compared to a profit of £4.8 million (US $7.865M) in the comparable period from last year.
“We had a disappointing first half from a financial perspective,” chief executive John Conoley said. “However, we put in place the building blocks for a successful second half.”
Those building blocks Conoley referred to come in the form of a new EP10 product, which is expected to compete heavily inside the Personal Digital Assistant (PDA) segment of the marketplace. Psion’s EP10 product has already reportedly seen strong initial orders in Europe.
To help facilitate building up its customer base in the United States, Psion has entered into a partnership with mobile leader Verizon.
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While both a new product and a partnership with Verizon would seem to bolster confidence in a second half resurgence for Psion, the market is less convinced, as the company’s shares are down.
Analyst Peter McNally at Charles Stanley told The Guardian that there is plenty of skepticism surrounding Psion’s new EP10.
“We would still not be holders of the company’s shares as we are not believers in its main new product, the EP10,” McNally said. “(Psion’s) partnership with Verizon in the U.S. could hold some future for the company, but we are not convinced that this will be enough to bridge the company beyond what is already expected this year.”
Psion’s future appears murky, and the best thing the company can do is make sure its supply chain remains uninterrupted with the launch of its EP10 product. Another supply chain failure could spell doom for the rugged laptop manufacturer.