StockMarketWire.com - Gooch & Housego - a specialist manufacturer of optical components and systems - warns that full results are likely to be significantly below its original forecasts.

The group says trading conditions have been more challenging than expected in the industrial laser market sector during the first four months of the financial year.

It says a downturn in the microelectronics sector and softer demand from China meant that, after two years of strong growth, the group entered the current financial year anticipating that sales of Q-switches in the first half would be lower than the record levels achieved in 2011.

Actual Q-switch sales during the first four months of the financial were below the level expected, and were significantly lower than the record levels achieved during the corresponding period last year.

It adds: "Although there are signs that demand is now showing some improvement, it is clear that the turbulent market conditions that prevailed last year resulted in excessive inventory build-up in some markets and that this has taken longer than anticipated to normalise.

"Management action is being taken to reduce overall costs where possible, and further efficiencies are planned as we continue to consolidate and integrate the acquisitions we made last year in the continuing programme to diversify the source of our revenues in order to bring about a better balance to our business."

At 8:28am: (LON:GHH) Gooch & Housego share price was -118.5p at 345p


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