Carclo’s technology set to transform mobile market

Touch screen developer Carclo said its new technology will be launched across a range of mobile phones and tablets over the next few months and the business is on track for “significant growth” this financial year and into the future.
Carclo CEO Chris Malley.Carclo CEO Chris Malley.
Carclo CEO Chris Malley.

The Ossett-based company believes that its touchscreen technology – CIT – can transform the $10bn market for mobile phone and tablet computer touch screens.

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

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Carclo said it traded in line with expectations in the first half of the financial year.

CIT’s new Cambridge facility was commissioned on schedule and Carclo said production on its high speed coating line was on time.

Carclo said that CIT is well positioned to meet the requirements for the expected ramp up in XSense, the touch screen sensors launched by Carclo’s US business partner Atmel.

Full-scale manufacture of coated film to support the XSense programme has started and CIT revenue in the first half of the financial year was £1.4m.

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Carclo said that XSense is to be adopted in a number of products launched across a range of tier 1 manufacturers during the second half of its financial year.

At the same time CIT is investing in new technology developments that Carclo believes will support future innovation in the touch screen sector.

In a separate development, Carclo’s chief executive Chris Malley said he was pleased to announce that the English High Court has said CIT can pursue claims against US rival Uni-Pixel Displays in the English courts for breach of confidence and patent entitlement.

He added that as a result of this successful decision, Uni-Pixel will be obliged to pay the majority of CIT’s costs.

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Carclo launched legal action against Uni-Pixel last December after the two companies worked together on a project.

Analyst Eoin Lambe, at Liberum Capital, said: “Carclo’s first half trading update is in line with expectations and we make no change to our estimates.

“CIT generated £1.4m of revenue in the period and is on track to accelerate its ramp in the second half based on Atmel’s previously announced design wins with multiple tier 1 OEMs (original equipment manufacturers).

“CIT has had initial success in its litigation against Uni-Pixel with a ruling that CIT’s claims can be pursued in English courts.

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“The core business is trading as expected and is positioned for stronger growth in the second half.”

Elsewhere in the business, the first phase of the group’s external review of market opportunities at Carclo Diagnostic Solutions has indicated good suitability for a wide range of medical device sectors. The second phase of this review is under way and will help the group to identify customer opportunities.

Carclo said that technical plastics profits will be ahead of last year.

“Our US business in particular has traded strongly and is set for further growth,” said Mr Malley.

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“Our US and Czech businesses are both set to benefit in future years from multiple new business wins.”

The group’s precision engineering division benefited from a good first half in its aerospace business and reported profits are expected to be comparable with last year’s first half performance.

Carclo said it will generate a larger proportion of its operating profits in the second half of the year and this will be magnified by the increase in CIT coated film sales.

“The commercialisation of CIT and the growth prospects in technical plastics and LED technologies reflect a very positive outlook for the group,” said Mr Malley.

“The group’s financial position remains strong.”

Carclo will issue results for the six months to September 30 on November 19.

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