Psion, the inventor of the handheld personal organiser, plunged into the red today after being hit by the hi-tech downturn and massive restructuring charges.
The group, which makes a range of hi-tech devices, said in July it was pulling out of the consumer market to focus on technology for hi-tech mobile phones and corporate customers.
The overhaul, which will call a halt to the production of new personal organisers, will cost the group £41 sterling, it confirmed today.
Losses for the six months to June 30th were £54.4 million - last year the group made a pre-tax profit of £3 million. Stripping out the restructuring charge, the group's losses were reduced to £13 million.
Turnover for the period was up, from £94.3 million a year ago to £100.5 million, although on a like-for-like basis, revenues dived 48 per cent to £48.7 million.
Founder and chairman Mr David Potter said: "The industry is still experiencing its worst downturn for the last 16 years and this is reflected in our figures."
The worse hit division was Psion Digital, which was created in March out of the three arms dedicated to personal organisers.
Mr Potter said the division's trading performance was "very poor" during the first half of the year, with falling sales and widening losses.
Psion is also part of Symbian, a joint venture which develops technology for smartphones, along with mobile phone giants Ericsson, Motorola and Nokia.
Mr Potter said: "Inevitably, the market slowdown experienced in the cellular phone industry has diminished the short-term outlook for Symbian products.
"The roll-out of these advanced networks and their next generation handsets has been prolonged as some network operators have slowed their capital expenditure."
The joint venture will therefore look to secure additional financing during the first half of 2002, he added, although he declined to give more details.
PA