21st Apr 2005 07:00
XP Power PLC21 April 2005 21 April 2005 XP Power plc ("XP" or "the Group") Trading Update XP, one of the world's leading providers of power supply solutions to theelectronics industry, is today issuing an update on trading for the three monthsended 31 March 2005, being the first quarter of the Group's current financialyear. First quarter bookings have been strong in all geographic markets, particularlyin Continental Europe where it is evident we are establishing the XP name andtaking market share. However, the forecasts we are receiving from our NorthAmerican customer base suggest a moderate softening in bookings in the secondquarter. Despite this fact the Group's sales forecasts continue to supportcurrent earnings expectations for the year ending 31 December 2005. The profile of the Group's order backlog confirms the guidance given at the timeof our preliminary statement for 2004 that we expect revenue growth to beweighted towards the second half of the year. After the translation effect of a weaker US Dollar versus Sterling whichprevailed in the first half of 2005 versus the first half of 2004 we expectrevenues for the six months to 30 June 2005 to be similar to those reported forthe same period in 2004. The proportion of XP product within our bookings andrevenues continues to support further improvement in gross margins. This factor,combined with the translation effect highlighted above impacting favourably onour US Dollar expenses, means we expect to report slightly higher earnings pershare in the six month period ending 30 June 2005 than in the same period a yearago. XP is also giving guidance regarding the effect of International FinancialReporting Standards (IFRS) on its 2005 results. Under IFRS the Group will nolonger amortise goodwill. Furthermore, International Accounting Standard 38requires us to capitalise qualifying development expenditure and amortise itover its useful life. As a result of this standard the Group expects tocapitalise a significant amount of its 2005 development expenditure. XP expect to release interim earnings for the six months ending 30 June 2005 onTuesday, 2 August 2005. - Ends - Enquiries: XP Power plc 0118 984 5515Larry Tracey, Executive ChairmanJames Peters, Deputy ChairmanDuncan Penny, Chief Executive Officer Weber Shandwick Square Mile 020 7067 0700Nick Dibden or Kevin Smith Notes to editors: XP Power plc provides power supply solutions to the electronics industry. All electronic equipment needs a power supply. Power supplies convert theincoming AC supply into various levels of DC voltages to drive electroniccomponents and sub-assemblies within the end user's equipment. XP Power segmentsits business into Communications, Defence and Avionics, Industrial and Medical.By servicing these markets XP Power provides investors with access to technologyand industrial sectors of the North American and European electronics market. The market is highly fragmented and made up of a large number of small to mediumsized Original Equipment Manufacturers who source standard and modified standardpower supplies from several hundred power supply companies. For further information, please visit www.xppower.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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