Psion's stock took another tumble at the end of last week as the company's chief executive, David Levin, repeated a warning that the first half of 1999 would be weak.
Levin said that trading for the first half of 1999 would be slower as customers waited until later in the year to purchase new product introductions.
Psion's shares fell around eight per cent to 815p as the warning was made at the company's annual general meeting on Friday.
Back in March, Psion reported pre tax profit for 1998 of £23.3 million, up 104 per cent from £11.4 million a year before but warned that 1999 would not be an easy year for the company.
Profit in fiscal 1998 was helped by a one time gain of £11.4 million from the transfer of shares and assets in the creation of smart phone venture Symbian.
However, the company also warned the shift to embedded modems would reduce Psion Dacom sales throughout 1999 and warned of slow sales in the first half of the year.
A spokesman for the company said the launch of new products should boost income and improve trading in the second half of the year.
Psion is due to make a renewed attack on the Windows CE market later this year with the launch of an A5 sized notebook product, based on its Epoc handheld operating system and supporting Java.
The product, code named Jedi, is expected to ship in September.
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