Elo TouchSystems' Revenues Reflect the Arrival of Touch as an Integral Component in the Total Solution, Elo's Touch Takes Off
10:27 a.m. Nov 03, 1998 Eastern
FREMONT, Calif.--(BUSINESS WIRE)--Nov. 3, 1998--Elo TouchSystems, Inc., leader in touch technology and a Raychem (NYSE:RYC) subsidiary, today reported revenues for the first quarter of fiscal 1999 of $28 million, up 20 percent on a constant currency basis from the prior year period. These results follow a successful fiscal 1998 where revenues were $105 million, up 18 percent from the previous year on a constant currency basis.
Revenue growth was particularly strong for touchscreen products in kiosk, point-of-information and point-of-sale applications. Regionally, Elo TouchSystems' leadership position in touch products accelerated rapidly in North America and Europe with 26 percent and 24 percent sales growth respectively. Sales also rose in Japan as a result of demand for touch products in kiosks, amusement and gaming applications, reversing a downward trend in recent quarters. Elo participates in kiosk business through comarketing alliances with kiosk manufacturers.
"Elo's profitability has continued to improve since our operations consolidated with Raychem facilities in both North America and Europe," said Emily Liggett, president of Elo TouchSystems. In 1997, Elo's Oak Ridge, Tenn., facilities moved to existing company operations in Fremont, Calif., and Elo's German facilities moved into Raychem's Ottobrunn facility. Liggett added that, "Elo continues to invest heavily to maintain and strengthen its leading edge in touch technology, including leveraging the material science capability of our parent company, Raychem, for our products."
Elo Leading in LCD Sales Growth
Compared with a year-ago quarter, unit sales grew 42 percent for Elo's flat touchscreens, strengthening the company's leading position in flat touch applications. "The high adoption rate of liquid crystal displays, fueled by their inherent energy, space and weight savings, has created an increased demand for flat touchscreens," said Liggett. "Customers choose the clear glass IntelliTouch(R) touchscreens because they provide the best optics on LCD monitors for kiosks. They choose AccuTouch(R) touchscreens for their history of stable, reliable operation in harsh industrial and point-of-sale applications." To complement its popular CRT kiosk touchmonitors and further capitalize on the market shift to LCD displays, Elo introduced its own series of LCD kiosk touchmonitors.
CRT Touchmonitor Unit Sales Up 67 Percent
New technology trends aside, Liggett says the company is simply selling more CRT touchmonitors. Elo's unit CRT touchmonitor sales are up 67 percent compared to first quarter fiscal 1998. "Declines in CRT prices and aggressive cost reductions in manufacturing led to a dramatic drop in our CRT touchmonitor prices," she said. "Lower prices coupled with our reputation for quality and excellent service, created an influx of customers."
An Integral Component of the Total Solution
Along with a lower price tag, touch is now easier to implement, more available and widely recognized by major computer companies as part of the overall system solution -- all contributing factors in Elo's sales growth, says Liggett. In October of this year, Elo announced that its entire line of touchmonitors is now available through the DellWare program of Dell Computer Corporation, the world's leading direct computer systems company (based on revenues of $15.2 billion for the past four quarters). Dell's direct DellWare services offers 24-hour access to an extensive selection of software and peripherals. Acceptance into the DellWare program affirms Elo's position as the touch technology leader and it represents a milestone for touch technology as it increasingly becomes an integral part of the "whole solution."
In the first quarter fiscal 1999, Elo released a patented new technology, MonitorMice(R) for Windows NT 4.0, that dramatically reduces the cost of touch applications by enabling multiple touchmonitors to connect to a single Windows NT workstation. Multi-user touch interface systems are ideal for point-of-information kiosks, and for financial, process control and gaming applications.
Another strong indication that touch has become a mainstream input technology is the inclusion of Elo's touch driver in Microsoft Windows 98 introduced in June. "Elo pioneered the industry's first USB-compatible touchmonitors as part of our ongoing commitment to develop new and emerging technologies to benefit our customers," said Liggett. "As the only touch driver embedded in the Windows operating system, Elo's USB touchmonitors are now as easy to implement as any other input device. Just "Plug and Touch(tm)" is now a reality for Windows 98 and, ultimately, in Windows NT 5.0." The new touch products may be added to existing systems or networks by simply hot plugging them into the computer without the need for loading separate device drivers or restarting the computer.
Elo TouchSystems, Inc., the global leader in touch technology, develops, manufactures and markets a complete line of touch products that simplify the interface between people and computers worldwide. Founded in 1971, Elo has headquarters in Fremont, California and offices worldwide. Elo TouchSystems is a wholly-owned subsidiary of Raychem Corporation (NYSE:RYC). For more information on Elo's products and services, call 1-800-ELOTOUCH (1-800-356-8682) or visit Elo's Web site at www.elotouch.com. Electronic mail inquiries should be directed to [email protected].
Raychem Corporation of Menlo Park, California, is an international company with approximately 9,000 employees in 49 countries and revenues of $1.8 billion in fiscal 1998. The company utilizes expertise in materials science, electronics and process engineering to develop, manufacture and market high-performance products for electronics OEM businesses, and telecommunications, energy and industrial applications. Information on Raychem is available on the Internet at: www.raychem.com.
Copyright 1998, Business Wire
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