No profits until next year for MicroEmissive Displays

May 13 2008

Slow down in demand for consumer electronics hits Edinburgh company

Shares in the Scottish makers of the world’s smallest TV screen MicroEmissive Displays plunged by over 50 per cent after it announced it did not expect to be profitable until next year.

The company said the general slow down in demand for consumer electronics and a slower than anticipated development of the market for its product meant it would not achieve month-on-month profitability until the next financial year.

It also said director of sales and marketing Paul van Eynde had left the company and chief executive Bill Miller will take responsibility for the function.

Graeme Walker, chief financial officer, will take over the operations role whilst a permanent replacement is sought.

There was some good news in the trading statement released to the stock market.

Discussions with potential customers remained positive and the company had shipped more than 100,000 units to three global headset manufacturers.

In addition the Edinburgh company also had nine design wins with potential customers who are in the process of designing its revolutionary eyescreen into their end products.

MED is also in discussion with two of Asia's leading digital camera manufacturers regarding the further application of eyescreen.

Miller said: "We are confident that the prospects for eyescreen remain very exciting indeed.

“The delay in the development of the market for consumer head mounted displays has been disappointing but we are still confident that the goals for MED can be met albeit slightly later than expected.

“The design-in activity remains strong and feedback from customers is extremely positive, which gives us confidence in the future performance of the company."