Tuesday April 27, 5:04 am Eastern TimeCompany Press Release
Elo TouchSystems Posts Record Quarterly Revenues
FREMONT, Calif.--(BUSINESS WIRE)--April 27, 1999--Elo
TouchSystems, Inc., a global leader in touch technology and a Raychem
(NYSE:RYC - news) subsidiary, today reported record revenues worldwide for
the third quarter of fiscal 1999 of $32 million, up 22 percent on a
reported currency basis and 19 percent on a constant currency basis
from the prior year period. The strongest growth versus the year-ago
quarter was in Europe and Asia, where sales increased 30 percent and
50 percent respectively.
Customers continued to choose Elo as their supplier for flat
touchscreens, resulting in greater than a 50 percent increase
worldwide in unit volume in the third quarter versus the prior-year
period, reflecting accelerating demand for flat displays. The
popularity of Elo's AccuTouch 5-wire resistive technology in the POS
(point-of-sale) and industrial markets, and IntelliTouch surface wave
technology in kiosk application helped to fuel the growth.
``Elo historically has been the favored solution in POS
applications, where most customers choose Elo's flat AccuTouch
touchscreens because of their quality, proven reliability, and
durability,'' says Emily Liggett, president of Elo TouchSystems. ``Elo
is particularly pleased to note a recent design win at Xn Corporation,
that included the industry's first implementation of multiple
touchmonitors with one PC for Windows 98 in a POS application.''
Elo's technical support of the Xn design, and the company's
ability to supply product worldwide were also contributing factors in
winning the business at Xn, a subsidiary of CheckOut Holdings Ltd., a
POS OEM based in the UK.
Growth in Self-Service and Kiosk Applications
Elo's touch solutions were chosen increasingly during the quarter
as the preferred technology in interactive kiosks, according to a
recently released Frost & Sullivan report. The report cited 32 percent
growth in kiosk applications, fueled largely by the growing number of
Internet-based kiosks used in the retail, financial, healthcare, and
government markets. Elo's sales reflected this trend, with increased
revenue in Japan as a result of providing finished kiosk solutions,
and a significant increase in LCD touchmonitors in North America and
``As demand for self-service kiosks continues to rise in both the
private and public sectors, Elo's kiosk touchmonitors have set the
industry standard for kiosk specific packaging and stability of
outside dimensions, as well as an expectation of high-clarity, stable
touchscreen performance that is unaffected by scratches,'' says
Liggett. During the quarter, Elo achieved significant design wins
worldwide in the multimedia pay phone area, a relatively new addition
to kiosk applications. Elo's SecureTouch surface wave touchscreens
offer a unique solution for internet public telephony projects by
combining the highest light transmission of any touchscreen overlay
with a 1/4-inch (6mm) of tempered glass for security and safety.
Overall, the high customer response is attributable to Elo's
expanded product offering, according to the company. Elo introduced a
Phillips 151AX desktop LCD with IntelliTouch surface wave technology,
popular in the public access applications, in the third quarter.
``Customers also responded favorably to Elo service, including
highly reliable delivery performance with same or next day shipments,
which became important as LCD supply tightened,'' Liggett said.
Elo Expands Gaming Applications
Elo continued to grow in European gaming and amusement
applications with several major OEM design wins in the third quarter,
and the addition of Suzo International as an Elo distributor in
Europe/Middle East/Africa for gaming and amusement applications. Elo's
IntelliTouch surface wave technology delivers a high clarity,
all-glass touchscreen that continues to work even with ordinary
scratches, which makes it ideal for applications ranging from casino
slots to coin-operated games in pubs and arcades.
Elo Offers CE Driver
In the third quarter, Elo began partnering with thin client
companies to bring touch solutions to vertical markets like
industrial, healthcare, and retail, which resulted in additional sales
of touchmonitors. NCD incorporated Elo's new Windows CE driver in
ThinStar 200, as did Wyse in its Winterm 3315SE and Winterm 3350SE.
``Elo remains committed to keeping `touch' at the cutting edge of
system development, ensuring that Elo's industry leading technologies,
touchmonitors, and quality service and support are all available to
developers regardless of their platform choice,'' says Liggett. Elo is
offering MonitorMouse touchscreen driver for Windows CE 2.1x to the
growing number of OEMs and system developers creating hardware
products for industrial control, information appliances, point-of-sale
and specialty portable or handheld devices that function under
Microsoft Corporation's popular Windows CE operating system. Elo's
Windows CE 2.1x driver compiled for x86 microprocessor family is the
smallest footprint CE touch driver (28k bytes) in the industry.
Elo TouchSystems, Inc., global leader in touch technology,
develops, manufactures and markets a complete line of touch products
that simplify the interface between people and computers. Founded in
1971, Elo has headquarters in Fremont, California and offices
worldwide. Elo TouchSystems is a wholly-owned subsidiary of Raychem
Corporation (NYSE:RYC - news). 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
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.
Elo TouchSystems, Inc.
Susan Pagani, 510/739-4671
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