Psion repeated its warning that it was expecting a tough 1999, although pre-tax profit for 1998 had more than doubled.
The vendor reported pre-tax profit of #23.3 million for 1998, up 104 per cent from #11.4 million in 1997. The 1998 figure was helped by a one-time gain of #11.4 million from the transfer of shares and assets in the creation of smart phone venture Symbian.
Psion shares dropped 26p to 735p on the London Stock Exchange when the figures were released.
David Potter, chairman of Psion, commented: 'The shift to embedded modems is likely to reduce Psion Dacom's sales. Psion is likely to see a slow first half to the year, with growth in the latter part as its product range widens.'
He added that in 1999, profit would be hit by 'substantial costs' at Symbian as the company continued to invest in the development of its handheld operating system, EPOC.
Sales for 1998 were up 13 per cent to #159.9 million, compared with #142 million in 1997. Net income climbed to #18.7 million or 24.27p per share, from #7.7 million or 10.13p per share a year earlier.
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