Global Graphics third-quarter results have been hit hard by the current financial climate and restructuring charges.

Total sales were down 28% to 10.9m (e7.5m), with a loss of 9m including one-time charges of 7.4m.

It has decided to focus on its core product ranges and has canned some R&D projects including the UV CTP project it was working on with US firm Cortron.

"Cortron needed financial assistance - we had the choice of buying the company or canning the project," said chief executive Johan Volckaerts. "Direct UV is an intermediate technology, especially for flexo. Direct engraving is the future direction and that project continues."

The company wrote off 685,000 related to the UV CTP project. Other one-time charges included 750,000 in redundancy pay and restructuring related to the transfer of manufacturing from Thetford to Halifax in the UK (PrintWeek, 7 September).

A violet version of its 2pp platesetter, the Cirrus 2, will be launched at Ipex, although it is delaying development of a 4pp version. Declining demand for its high-end Harlequin RIPs hit the software division, although this was compensated for by a rise in sales for its middle market RIP and PDF products.

"Graphic arts, in particular in the US, is feeling
the pinch," said Global Graphics Printing Software chief operating officer Jim Freidah.

The firm is continuing with its strategy to push into the middle market for RIPs and embedded controllers, and promises to reveal details of major new OEM customers in this market by the end of the year.

It remains committed to high-end products, according to Friedah. "Sales are down but were dedicated to it," he said. "That will come back, were not worried."

By Barney Cox