Parthus says it is heading to profit again

Parthus Technologies said today it was heading back towards profitability after overcoming one of the sharpest slowdowns on record…

Parthus Technologies said today it was heading back towards profitability after overcoming one of the sharpest slowdowns on record.

Like many in the sector, Parthus has suffered from the hi-tech slump and said 2001 had seen "the worst semiconductor downturn on record".

But chief executive Mr Brian Long added the group's performance had been "robust" despite the tough economic conditions.

Key licensing and royalties revenues leapt 87 per cent and agreements were struck with a raft of hi-tech players including 3Com, Fujitsu, Hitachi, Motorola and Sharp.

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Mr Long conceded that short-term market conditions "remain challenging", but added: "Notwithstanding, we have a strong sales pipeline illustrating the continued demand for our technology.

"We look forward to sustaining Parthus' growth and development and returning to profitability in the second half of 2002."

The Irish chip maker, which has listings in London and on the Nasdaq in the US, said total turnover for the year ending December 31st climbed from $31.9 million last year to $40.9 million.

Bottom-line pre-tax losses increased from $14.8 million to $34.4 million on increased marketing and research and development costs and charges linked to recent acquisitions.

Stripping out one-off items but including R&D and marketing costs, pro forma losses before tax were $11.7 million compared to $8.2 million in 2000.

Dublin-based Parthus, a former member of FTSE 100 Index, soared in the tech boom and its shares peaked at more than 400p.

But when the bubble burst its value plummeted and last autumn its shares dipped below 20p.

Today, however, the update cheered investors and the shares edged up 1 3/4p to 34p, a 5 per cent rise. Parthus does not currently pay dividends.

PA