Shares plunge as Promethean performance disappoints

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Shares plunge as Promethean performance disappoints

Simon Quicke
Shareholders who backed interactive whiteboard (IWB) manufacturer Promethean when it listed on the stock exchange two years ago saw their shares drop to just a third of the original price following poor results from the vendor.

Difficult trading conditions in North America, which saw revenues decline by 40%, hit the IWB hard although there was growth of 22% in the UK and Europe.

First quarter revenues were £35.9m, 14.4% lower than the £41.9m revenues in the same period last year.

By product segment, interactive display system revenues were £31.3m and learner response system revenues were £4.6m, reductions of 14.1% and 16.0% respectively compared to Q1 2011.

As with most firms that make money from education the business is influenced by the school calendar and Promthean said it expected the key buying period between June to September could be a better indicator of where the rest of its fiscal year is heading.

"We continue to expect that market conditions will remain challenging, particularly in the US and
Europe, with growth anticipated in our International region for the year as a whole. 2012 revenues are expected to be weighted more heavily to the second half of the year than in 2011," stated the vendor in its management statement.

"Although the US market was more challenging than anticipated in the first quarter, it is the key buying season from June to September in the US that will better inform our outlook for the year, and the third quarter will be a more important period in the North America sales cycle for 2012. We therefore remain cautious in our outlook," it added.

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