1)High tech stock remain high risk in 2002/2003 the crash has sorted this out.
"2004 will bring the boom back into tech stocks"
THE FALL
It is now clear that Scipher spread its investment cash across too
many operations without sufficient attention to their ability to achieve
anticipated returns.
Total revenue down by 12% to £8.8m, mainly impacted by sales setback at
Secure Identification.
Total operating loss increased by 6% to £5.7m (H1 2001/02: £5.4m)
THE RISE WILL COME FROM
* Key New business revenues up by 1% to £7.8m representing 89% of total.
* Banking facility being renegotiated following disposal of 3D Sound business
The core Scipher businesses going forward (TSSI, CRL Opto and QED) have
competitive products, good patent protection, and address large and growing
markets (Key New business revenues up by 1% to £7.8m representing 89%
* MicroVue cash burden REMOVED
Action is already in hand to address the major cash drains on the business.
Share price 3.5p to buy
As regards the longer term, Rudy Burger, our new CEO, is currently undertaking
a review of Scipher's operations, with a view to determining the best way to
maximise returns for our shareholders.
I REST MY CASE
Outlook
The review being conducted by CEO Rudy Burger aims to determine how best to
accelerate Scipher's transition to profitability. This may require changes to
our business model. It is clear that where circumstances have affected the
established business plan of any of our operations, appropriate action must be
taken. We also continue to explore opportunities to capitalise on technologies
that we have successfully developed to a strong position in their market
sector.
The situation in the technology marketplace has begun to improve recently and
we expect to see this continue through the second half of the year. The actions
we are taking are aimed at putting each business in the best position to
capitalise its technology. While the longer-term prospects for trading and
market conditions remain difficult to predict, the actions we have in hand
enable us to be cautiously optimistic for Scipher's progress over the medium
term.'
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