LONDON (dpa-AFX) - Laird Plc. (LARD.L, LRD.L) reported that its first-quarter revenue declined 2% to 119 million pounds from the prior year's 122 million pounds. Revenue expressed in US dollars was $186 million, compared to $191 million last year.On an organic basis, revenue was 6% lower in the first quarter of 2013.
The company said it have seen a pick-up in the rate of design activity and design wins, although softness in the B2B markets in the first quarter has resulted in lower revenue. In addition revenue with its largest customer was 17% lower year on year. As a result operating margin has been impacted by lower revenue and lower overhead absorption on an expanded production base.
In its Interim Management Statement for the period from 1 January 2013 to 3 May 2013, the company said it continues to expect revenues to be weighted towards the second half of the year. The company expect revenues for the second quarter to follow the same year-on-year trend it had experienced in the first quarter, with a return to year-on-year growth in the second half as it benefits from its own and its customers' new product launches.
The company stated that its increasing investment in R&D further reinforces its confidence for revenue growth in the second half of the year. As a result of these new product launches and increasing investment, together with the translation benefit from a stronger US dollar than originally anticipated, the company's expectations for the full year remain unchanged.
In a separate press release, Laird announced the appointment of Jack Boyer as a non-executive director of the Company with effect from 7 May 2013.
Jack is currently chairman of Ilika plc, the advanced materials development company and IQUR Ltd, a biotechnology company. He is also chairman of Southampton Asset Management Ltd, the University of Southampton's technology and intellectual property fund and holding company, and a member of the Engineering and Physical Sciences Research Council.
Jack will become a member of the Audit and Remuneration Committees of the Board with effect from 7 May 2013 and will succeed Tony Reading as Chairman of the Remuneration Committee on 1 August 2013. As part of ongoing programme to refresh the Board, Tony Reading will be retiring as a non-executive director on 31 August 2013 having completed nine years with Laird. Paula Bell will succeed Tony Reading as the senior independent director.
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