Shares digital

Cyan (CYAN:AIM) – Finals PTP: -£4.6m (-£3m) Divi: n/a (n/a)

Cyan's CEO Ken Lamb, who joined the company last year, is leading a radical restructuring programme that should make the Cambridge-based microchip specialist profitable in 2009. New sales and operations teams have been hired and a massive 73% reduction in manufacturing costs has been achieved.

This should allow the company to sell its 16-bit chips in China at competitive prices in the mainly eight-bit-focused market. In Europe, Cyan's new chip development kits and software have been well received and shipments should follow. The larger loss reflects the investment and some key write-offs of stock. The cash run rate of £0.25m to £0.3m shouldn't change for the moment, but the board admits it may need more cash to develop new products.

Shares says: The new and drastically improved strategy should now be reflected in the hammered share price.

by: Carlo Svaluto