Production delays hurt Screen Technology
AIM-listed Screen Technology has been hit by production problems, which it says will negatively impact projected sales for 2006.
The Harston, Cambridge based company, which makes large scale displays from LCD screen ‘tiles’ says it has been let down by third party suppliers. Consequently, Screen said, significant numbers of sales would be shunted into 2007.
Directly culpable or not, the company was given a rough ride by the market, with 13 per cent shaved off its share price following the announcement.
The announcement stated: "The sales forecast for 2006 was heavily dependent on the delivery of the new high speed production machines and on the sale of modular products.
"The timing of both of these has been affected by delays by third party suppliers that will have a consequential impact on sales for 2006. We expect therefore, that sales for this year are likely to be significantly below current market expectations." Effects on sales forecasts for 2007 would be small, according to Screen Technology.
While investors evidently found it difficult to look beyond those last five words, there was plenty of upbeat news contained within the same trading update.
Screen said its sales pipeline continued to be strong and reported "extremely high levels of interest" at the recent exhibition at Infocomm in Orlando Florida earlier this month. It used the event to showcase the first prototype modular ITrans products
These modular products enable very large ITrans screens to be easily transported to customer sites in modular form and assembled in situ and the business said it expects these products to boost sales from early 2007.
Tom Jarman, chief executive said: "2006 will be a defining year for Screen Technology. By the end of the year we expect to have high speed production of ITrans, a technology that is unrivalled in a very large and growing international market. We expect to have proven the product and our pricing model with customers and to have increased our range of products with modular systems fully available in 2007."
Screen Technology’s hi-res large-screen displays are designed for high ambient light environments. They are visible at short viewing distances as well as across larger venues making them particularly suitable for large retail outlets, shopping malls, control rooms and transport concourses.
Screen Technology uses moulded optical fibre tiles to produce seamless large displays using standard production LCD panels. The scaleable modular technology enables screen to be built in a wide variety of shapes and of theoretically unlimited size.