Trading Update
October 21 2003 - 4:20AM
UK Regulatory
RNS Number:1127R
Concurrent Technologies PLC
21 October 2003
Concurrent Technologies Plc
Postponement of product shipment through component obsolescence
Since the announcement of the Company's interim results for the period ended 30
June 2003, a major supplier has announced that a key component used in
Concurrent Technologies' single board computers is imminently to be
discontinued. This is an unusual step in the embedded computer market.
Normally customers are given about 12 months notice of an intention to
discontinue a product, giving users ample time to upgrade designs. In this
instance, Concurrent Technologies' customers have indicated that they are
prepared to wait for upgraded replacement products.
The net effect of the delivery gap is that some of Concurrent Technologies'
sales to existing customers have been delayed and that the Company's profits
will fall substantially below current stock market expectations for the year to
31 December 2003, with the likelihood of a modest impact on the first half of
2004.
Consequently, the design timescales of the upgraded replacement products have
been advanced and are expected to be released by the end of 2003.
Apart from this short term problem, the Company continues to be positive about
the outlook for 2004 which it will start with an enhanced competitive position
due to the release of this upgraded processor technology.
The Board is not expecting to change its dividend policy as a result of today's
announcement.
21 October 2003
ENQUIRIES:
Concurrent Technologies Plc Tel: 01206 752 626
Glen Fawcett, Managing Director
College Hill Tel: 020 7457 2020
Nicholas Nelson
This information is provided by RNS
The company news service from the London Stock Exchange
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