20th Feb 2014 09:07
LONDON (Alliance News) - DDD PLC said Thursday that it expects revenue for the full-year to be more than halved compared with the previous year, as it saw demand fall for its 2D to 3D conversion software due to the continued decline of the personal computer market.
DDD expects revenue for the year to be around USD3.4 million, down from USD8.6 million in the previous year.
The company said that it expects its gross margin to increase two percentage points from the previous year to 99%. DDD shipped over 11 million units through the year, down from 15 million in the previous year, as it shipped fewer PC software licences and chips for use in PC monitors and Blu-ray players.
Global demand for personal computers has declined as devices like tablets and smart phones move to the forefront. DDD said that its new mobile software licences began shipping during the second-half of 2013 for new glasses-free 3D tablets.
"2013 proved to be a challenging year for the group as the competitive pressures from the tablet market had a material effect on the overall PC market, resulting in a substantial decline in shipments of DDD's TriDef 3D PC software," Chief Executive Officer Chris Yewdall said in a statement.
The company said that, responding to this slow down, it had reduced headcount and expenditure during the year. For 2014 the company will focus on securing new licenses for its 2D processing solutions, DDD said, and supporting its existing licensees in the 3D market as new tablet and smart television products are launched.
DDD will also look to secure a partner to expand the licensing of its patent library.
Shares in DDD were trading down 9% at 5.12 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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