Carclo remains on course despite delay to shipment

The Ossett-based company had expected the shipment to take place in September.

Carclo’s chief executive Ian Williamson said the group was told on Monday night that the manufacturer had changed the design of the phone and this will mean the sensor will have to be changed.

Carclo said it is now more likely that its first production shipment will be to a tablet manufacturer next month. This is a much larger order than the smartphone contract.

This tablet shipment will trigger a $10m (£6.5m) pre-payment from Carclo’s US partner Atmel Corporation, which is due in the fourth quarter.

Analyst Janardan Menon, at Liberum Capital, said: “Carclo has announced a delay in first shipments of the sensor product from September into the fourth quarter, but expects no delay in the $10m pre-payment from Atmel.

“The pre-payment is scheduled to come about eight weeks after the first shipment suggesting that the delay is about a month or so.

“We do not see this delay as being significant to numbers, or the overall story for Carclo.”

The group said that trading continues in line with the board’s expectations and it is looking forward to a year of progress across all its business streams.

Carclo said that a half year trading update will be issued during the week commencing October 8.

Carclo believes its technology can transform the $10bn market for mobile phone and tablet computer touchscreens.

The company is developing touchscreen sensors made from its conductive inkjet technology (CIT).

Carclo’s CIT lays fine lines of copper to create considerably cheaper and thinner touch screens than those made using the conventional indium tin oxide.

It has signed an exclusive 10-year deal with Atmel, the semiconductor manufacturer, to launch XSense, the touchscreen sensors.

Carclo’s technology allows developers to make larger, lighter, less power-hungry, sleeker designs for smartphones, tablets and other products.

Production samples have been supplied to eight major device manufacturers covering seven smartphone models and three tablets.

Mr Williamson, who is to retire in March 2013 after postponing his retirement two years ago, said the eight manufacturers include both big and small players.

Apple and Samsung dominate both the smartphone and tablet markets.

Mr Williamson estimated that the group will produce 100,000 screens a week once it starts shipping.