BBC News | BUSINESS | Psion opts for mobile web

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Thursday, 2 March, 2000, 13:04 GMT

Psion opts for mobile web

Psion 5 series personal digital assistant

Handheld computer maker Psion has announced plans to raise Ł100m for acquisitions that will allow the company to move aggressively into the market for mobile internet access.

The company wants to transform its range of organisers into mobile communicators, that will allow users to make phone calls and surf the internet.

Psion chairman David Potter said that his firm's strategy was "now defined around the mobile internet".

He said Psion was "ideally placed to develop and market digital products and services to people on the move - whether they are consumers or among the 40% of the workforce which is mobile".

Drag on profits

But he warned that the scale of investment would "continue to hold back profits". Woman packing psion computers

During 1999, pre-tax profits fell to Ł4.55m, down from Ł23.26m a year earlier.

Turnover was down as well, by Ł9.5m to Ł150.4m.

But it was not only large investments that proved to be a drag on earnings. Business was "poor" during the first half of 1999, although the firm says that it saw a strong performance during the second half of the year.

The trend appears to continue, with Psion reporting that during January and February sales were "well ahead" of the same period last year.

Focus on Symbian

Psion's most important asset is its 28% stake in Symbian, the joint venture with Nokia, Motorola, Ericsson and Matsushita.

The firm is on track to roll out version 6 of its Epoc operating system, designed to run mobile phones, communicators and personal digital assistants.

Symbian's high-powered backers make the firm a direct competitor of Microsoft and its Windows CE software.

Cashing in

Psion's main currency to finance its expansion plans is its much sought-after stock.

But the firm's directors are cashing in too, with chairman David Potter selling some of his stake in the company, up to a value of Ł100m.

That is less than 10% of director's holdings, although it will reduce Mr Potter's stake to 14%.

Related to this story:
The Psion factor (01 Feb 00 | Business)
Psion pockets Motorola deal (31 Jan 00 | Business)
The mobile internet race (09 Dec 99 | Business)
Internet drive by companies (22 Feb 00 | Business)
Psion profits collapse (16 Sep 99 | The Company File)
Psion and Palm establish links (14 Oct 99 | The Company File)
The Telecom Revolution (21 Oct 99 | Business Basics)

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