BILL Miller, the chief executive of MicroEmissive Displays (MED), launched a robust defence of the technology firm's progress yesterday after a profit warning knocked more than half the value off the company.
Edinburgh-based MED, which makes the world's smallest television screens, warned yesterday that monthly profitability – which it had predicted would occur later this year – would be delayed until 2009.
Shares in the company immediately fell to a
record low of 12.25p, down 51.5 per cent, valuing it at just £7.3 million.
But Miller yesterday insisted that the firm was being unfairly punished by the market and the group was reaching all its key milestones.
"We have done what we always said we would do, albeit slightly later than we thought," he said.
"I think we're being overly punished (by the market]. Last year we shipped about 5,000 units, this year we've shipped 100,000 units already and we're growing quarter by quarter.
"That's not a business or a technology that is dying or has nowhere to go. Quite the opposite...the order book is growing and there is definitely demand."
Investors were quick to seize on the fact that, as recently as the end of February, Miller reiterated the company's expectations that it would hit monthly profitability by the end of 2008.
Yesterday MED blamed a slowdown in consumer electronics as well as a "slower than anticipated development of the market for consumer head-mounted displays" for the delay in reaching profitability.
The company makes headsets which are expected to become popular among hard-core computer gamers. The equipment has provided MED with its first major sales market.
Yesterday the company said it had "significant traction" with "two of Asia's leading digital camera manufacturers" about using the company's screens in future products.
Miller said the company had also identified possible markets for the products in the automotive sector, but declined to give details.
While there had been a "definite softening" in demand for high-tech consumer goods, Miller said none of the group's customers had signalled plans to delay or cancel launching new products.
The profit warning came as MED announced the departure of sales and marketing director Paul van Eynde with immediate effect.
Miller refused to discuss the move but said the reason was not related to the performance of the company.
While a replacement is sought for van Eynde, Miller will take on the sales and marketing role while chief financial officer Graeme Walker will take on responsibility for operations.
MED was spun out of Edinburgh and Napier universities. It is in the Guinness Book of World Records as the creator of the world's smallest television screens.
The full article contains 450 words and appears in The Scotsman newspaper.
