The Symbian joint venture, which will see Psion Plc’s EPOC operating system in a new generation of wireless information devices, has transformed the UK company’s prospects. It also came along just in time as the company is taking a hammering in its core palmtop market with lower sales and margins under pressure as a result of competition from Windows CE-based competitors and the strength of the British pound. Palmtop revenues slumped 11% to 24.7m pounds in the first six months and are largely responsible for lackluster figures which saw net income up 5.2% to 2.7m pounds and revenues increase 12.6% to 72.5m pounds. Outside the palmtop business, the company is performing well with Psion Dacom’s mobile network products increasing sales by 79% to 24.7m pounds and the company can now boast that it is the third-largest maker of PC card modems. But it is software that is the key to Psion’s future in the Symbian joint venture with Nokia, Ericsson and eventually Motorola. While Psion will record an exceptional profit of 16m pounds this year as a result of the transaction, it expects Symbian to be loss-making for the first three years. Chairman David Potter says Symbian currently has substantive negotiations in progress from a number of major technology companies to license EPOC. In the second half strong growth is expected in the mobile networks and industrial division. Alas, the most that can be expected from palmtops is that this division will consolidate its position.
