Psion hit by US economic downturn

While its EMEA (Europe, Middle East and Africa) and Asia markets –which account for around two-thirds of Psion’s revenues – were growing satisfactorily, American demand, especially from transportation and logistics customers, was weak. Purchasing decisions for the company’s equipment and systems were being delayed in the face of ongoing US economic uncertainty. With the weakness of the dollar relative to Sterling adding to its woes, Psion expects US revenues to be eight per cent below last year's $135 million – translating to a 15 per cent drop due to the weakness of the US dollar in Sterling terms, its reporting currency. As a result, total group revenues in 2007 will be only modestly ahead of last year’s £190.6 million. Chief executive Jacky Lecuivre (pictured) said the weakness in demand from North America was not unique to Psion but demand in EMEA and Asia remained strong and would be boosted by sales of a new Ikon PDA/smartphone product in 2008.