2nd May 2014 08:35
LONDON (Alliance News) - Electronics firm Laird PLC Friday maintained its expectations for the full year, as it saw revenue rise 7% on an organic basis in the quarter to end-March.
The company said it had traded in line with expectations since the start of the new year. Revenue for the first quarter was USD199 million, up from USD186 million.
However, the strength of sterling continued to damp results, as in sterling revenue only rose 1% to GBP120 million from GBP119 million.
In the company's performance materials division, revenue rose 8%, or by 1% in sterling, driven by demand for portable electronic devices in the smart-phone and gaming markets, which offset the challenging tablet market.
Laird expressed confidence that the performance materials business would grow in 2014, underpinned by visibility of new products it will launch to its customers.
The growing deployment of 4G networks, particularly in Asia, has driven demand for the company's Thermal and Electro Magnetic Interference businesses during the quarter.
Laird said it will continue its expansion in Korea, and expects this will begin seeing benefits from the second quarter of the year as its Korean Design Centre and Vietnamese production facility begin operations, and it broadens its products using the capabilities of its recently acquired majority stake in South Korean prototype design company Model Solution.
In its Wireless Systems Division, revenue rose 5%, although in sterling revenue declined 2%. During the quarter Laird secured a new contract in its Telematics/Machine to Machine business, which will begin in the fourth quarter.
Sales of Laird's Bluetooth products were up compared to the previous year, it said, as a result of it refreshing its product line in 2013.
Its Wireless Automation and Control Solutions business started the year well, Laird said, securing a contract in Europe. Laird expects the launch of a new operator control product for the rail industry to add revenues later in the year.
"2014 has started well, and as we had expected. We have benefited from actions we have taken over the last 18 months and the anticipated improvement in the markets we serve," said Chief Executive David Lockwood in a statement.
Shares in Laird were trading up 0.3% at 280.29 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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