Sales setback knocks Carclo profits

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TECHNOLOGY group Carclo said that lower than expected sales at its touchscreen division will hit profits in the second half.

The Ossett-based company said sales in the second half will be ahead of the first half, but below the board’s previous estimates.

It said this was due to a slower than anticipated ramp up in production on the programmes which are using XSense, the touchscreen sensors launched by Carclo’s US business partner Atmel.

Carclo 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.

Carclo hopes that its new technology will be launched across a range of household name mobile phones and tablets over the next few months.

Analysts lowered their expectations for CIT sales from £4.5m to £3.6m for year to March 31 and from £13m to £10m for year to the end of March 2015.

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

The group said that the market for XSense and other metal mesh solutions is growing rapidly as manufacturers choose it over ITO touch sensor solutions.

The market for sensors is worth $5bn.