IOC International - Trading Statement
July 01 1997 - 2:30AM
UK Regulatory
RNS No 7342x
IOC INTERNATIONAL PLC
1st July 1997
IOC INTERNATIONAL PLC ("IOC") - TRADING STATEMENT
SHORT-TERM REVENUES
The Company has been informed by its largest customer
that purchases from IOC in July, August and September
1997 will be very substantially reduced. This customer
has indicated its intention to resume purchasing at more
normal levels from late September.
This customers actions will cause a substantial drop in
IOCs revenues in the fourth quarter of the current
financial year. IOC may report a loss for the year as a
whole in consequence of the size and abrupt nature of the
change. The Directors believe that this reduction in
purchases represents an isolated problem.
OUTLOOK
IOCs third telecommunication equipment customer, whose
account was recently secured and announced, has commenced
purchasing IOC product. The Directors are very confident
of further broadening of the customer base in the short
term.
The product development programme will result in further
product commercialisation in the near term. In
particular, the 10 Gigabit/second modulator has been
successfully sampled by three telecommunication equipment
manufacturers and is expected to generate sales in the
first half of the new financial year. Generally, IOC has
achievable plans for structured product launches to
maintain competitive technology, to broaden the product
range and to assist in broadening the customer base.
The Companys physical expansion is progressing as
planned.
At 31 May 1997, the Company has cash resources of over
#5.2 million and net assets of #8.2 million.
In view of IOCs advanced product development plans,
investment in production capacity, the progress made with
new and potential customers, and its financial strength,
the Directors will maintain the levels of investment in
new product, sales and facilities in order not to damage
IOCs long term prospects.
For further information:
Mike J Powell
IOC International plc
01376 502110
R David Smith
Henry Cooke Corporate Finance Ltd
0161 832 2288
END