IMTE I-Mate

RNS Number:1899Q
i-mate plc
26 January 2007



For immediate release                                            26 January 2007


                                   i-mate plc

                    Trading Update Friday 26th January 2007


i-mateTM plc (London AIM:IMTE) today issues the following update in respect of
its 3rd quarter trading and prospects for the remainder of the year.

It is expected that revenues for the year will be $190-200 million. Sales
revenues in Q3 were $48m and in Q4 are expected to be in the range $30-40m. The
revenue shortfall has had a direct impact on profits and consequently we will
record an operating loss in the second half. We will keep the market advised and
will issue the usual trading statement in April after our year end, and when we
may have greater visibility of the prospects for 2007/08.


Jim Morrison, Chief Executive, said:


"Whilst there has been good demand for our products, we have experienced
significant problems with a particular supplier, in that it has failed to
deliver stock to the required timings and volumes, meaning that we have been
unable to fulfil customer orders in a period when we expected a major ramp up in
sales. This has been in addition to continued challenges we face in dealing with
our existing major supplier. These issues have had a major impact on the third
quarter results, our most important quarter, and in particular December.
Following very recent meetings with all of our potential sources of supply, and
a review of our sales prospects, we have concluded that the situation is likely
to endure for the rest of the financial year and into next year's first quarter.
We are seeking to accelerate the delivery of new products from other suppliers
but current forecasts are that these products will not be available until June
2007.


In response to this setback we are reviewing our cost base, although certain
costs we have incurred represent commitments. A full review is being carried out
by the Company to ensure this situation doesn't happen again. As we said in our
Interim Report, we are in a transitional period before our completely new
product ranges come on stream. These supply problems make the immediate term
difficult and will result in our financial performance being very significantly
below market estimates for 2006/07 and 2007/08.


Despite this very disappointing outcome, the Directors and I believe that the
new product ranges that are due to launch in Q2 of next financial year will
restore the impressive growth trend that the Company has demonstrated until now.
These new product ranges will deliver high specifications, iconic design, very
competitive pricing, and enhanced services. It is this compelling combination
that is the source of the Company's confidence for the future".


                                  - E N D S -



For further information please contact:

Buchanan Communications
Mark Edwards/Robin Haddrill                                     
                                                             Tel: 020 7466 5000




                      This information is provided by RNS
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