Gooch & Housego PLC
13 February 2008
For Immediate Release 13 February 2008
Gooch & Housego PLC
(The 'Company')
Progress Update for Today's Annual General Meeting
Gooch and Housego PLC, the specialist manufacturer of optical components and
systems, today announces a progress up-date.
After a slower start to the year, demand is strengthening and order intake
during the first few weeks of 2008 has been encouraging. Several of our key
Q-switch customers have placed long term (12 to 24 month) orders and we have
also secured a number of important design wins, most notably for fibre optic
components and modules from markets as diverse as biomedical,
telecommunications, aerospace and defence. As a result, our order backlog is 14%
higher today than it was at this time last year, and more than 15% higher than
at 1st October 2007.
While the outlook remains favourable, sales of our acousto-optic products during
the first quarter were lower than for the same period last year. The indications
are that this was a temporary slowing of demand brought about by higher than
normal inventory levels at some of our customers, the cyclical nature of certain
key markets (semiconductors and microelectronics) and the uncertain economic
climate. We are now working to make up the ground lost in the first quarter and
we are expecting improved revenues in the second half of the year.
Last month we launched our new, integrated components and materials business
combining the activities of Gooch & Housego UK, Cleveland Crystals, NEOS
Technologies, Landwehr Electronics and SIFAM Fibre Optics. As a $60 million
annual revenue global optoelectronics business, we have enhanced our market
presence, extended our global reach and reinforced our position as a leader in
our field. The integration was well received by customers, who are supported by
a new 18 strong sales and product management team, including newly opened sales
offices on the West Coast of the USA and in Hong Kong.
As a fully integrated business we have also been able to embark on important new
product development programmes that draw upon skills from several of our
operating locations. The first products will be available towards the end of
this calendar year and are expected to make an immediate contribution to
revenues. In addition to organic growth via new product introductions, we are
continuing to take a proactive approach to acquisitions in order to facilitate
access to new markets.
To support our growth plans we are creating additional manufacturing capacity.
We recently began the relocation to our new factory in Ilminster which will more
than double usable manufacturing space. In Torquay we have embarked on a factory
extension that will provide 35% more space.
In summary, despite a slower start to the year, we remain optimistic about the
long term prospects for Gooch & Housego based on the feedback we are receiving
from our customers and supported by changes we have introduced in recent months
to strengthen the business and our market position.
Contacts: Gareth Jones, Chief Executive Officer, 01460 52271
Tim Thompson, Buchanan Communication Ltd, 020 7466 5000
Andrew Edwards, Oriel Securities Limited, 020 7710 7600
This information is provided by RNS
The company news service from the London Stock Exchange