Carclo Regulatory News (CAR)

31 October 2013

Carclo plc

("the group")

Atmel Corporation Announcement

The group notes the comments in respect of XSense™ made by Atmel Corporation ("Atmel") executives during the Analysts Earnings call that accompanied Atmel's Q3 results on 30 October 2013.

Extracts from the transcript of the Earnings call are reproduced below:

"During the third quarter we commenced volume production and achieved our first shipments for revenue from our Colorado Springs manufacturing facility. In regards to 2013 XSense revenue, while we are successfully ramping production in Colorado Springs, and shipping to multiple customers, a significant reduction in forecast by a major customer has adversely impacted our ability to achieve our prior XSense revenue range. Although near term revenue will be lower than expectations, customer interest and design activity continues to be very strong and we are on-track to bring on new capacity that will support over $100 million of XSense revenue in 2014. We are very optimistic on the strong growth prospects for XSense."

"We continue to extend the technical advantages of XSense while simultaneously expanding the market opportunity. Recently we introduced sensors capable of supporting screen sizes up to 15.6", up from 13.3" previously. Further increasing our competitive advantage, XSense can enable our customers to achieve touch panel stacks that are thinner, lighter, and cheaper as compared to other sensor technologies. We now enable customers to utilize low cost plastic cover lens solutions with only 0.2mm thickness or to use glass cover lens at only 0.4mm thickness. XSense also enables the narrowest border area designs available in the market today which allows for thin bezels on the OEMs products."

"As a leader in metal mesh technology, with strong IP and manufacturing know-how, Atmel stands to significantly benefit from the adoption of metal mesh technology and the overall growth of the touch sensor market."

"Our XSense product is in volume production and customer design activity is high. The touch sensor market represents an enormous opportunity for Atmel and we expect substantial growth in our XSense business in 2014 and beyond." 

The increasing ramp up in volume production alongside additional technological advances and Atmel's confidence in the XSense™ business provides further assurance over the success of Conductive Inkjet Technology's ("CIT's") Fine Line Technology business. Due to the reduced schedules for a specific customer as confirmed by Atmel above we are anticipating that our forecast of CIT revenues for the financial year ended 31 March 2014 will be towards the lower end of our range of £4 - 7 million. Growth prospects for future financial years remain substantial.

- ENDS -

Notes to editors

Carclo plc is a technology led plastics group. It is a public company whose shares are quoted on the London Stock Exchange.

Approximately three fifths of sales are derived from the supply of fine tolerance, injection moulded plastic components, which are used in medical, optical and electronics products. This business, Carclo Technical Plastics, operates internationally in a fast growing and dynamic market underpinned by rapid technological development.

Approximately two fifths of sales are derived from the supply of specialised precision components to the premium automotive and aerospace industries and LED optics for a wide range of end applications. Carclo is a leader in the development of high power LED lighting for supercars.

Carclo's strategy is to develop new technologies and products to drive future growth. Its investment in Conductive Inkjet Technology is at the heart of the newly emerging market for very low cost printed electronics.