Half Year Trading and Strategy Update

    RNS Number : 1157Y
  ClearSpeed Technology plc
  02 July 2008
   

    2 July 2008 

    ClearSpeed Technology plc

    Half year trading and strategy update plus Board change

    ClearSpeed Technology plc ("ClearSpeed" or "the Group", AIM: CSD), a leader in high-performance processors for supercomputing and
embedded systems, is publishing a half year end trading update for the six months to 30 June 2008 and an update on its strategy and cost
base, with an associated Board change.

    Trading update

    ClearSpeed had revenue of £438,000 in the first half of the year. This represents 206% growth over the same period last year and
reflects the continuing trend of the Group shipping more product to a broadening customer base.  

    At the end of June, the Group launched its new processor, the CSX700 at the International SuperComputing Conference in Dresden. This
processor is the world's most power efficient high performance processor. Launching this new product "ready to ship" and with the
development completed on budget, was significant proof of the effectiveness of the Group's execution. In addition, at launch, the CSX700 was
approved by HP to provide acceleration to its blade servers opening up a significant potential market for the product which is both endorsed
and supported directly by the vendor. 

    The CSX700 has also been selected by BAE Systems for future US government satellite processing needs. This highlights a widening of
interest in the Group's technology for defence, aerospace and related markets.  

    Together these developments extend the Group's addressable opportunity in High Performance Computing (HPC) acceleration at a time when
this is listed by industry analysts as a significant emerging trend in that industry. They also keep the Group on course to significantly
widen its overall market opportunity beyond HPC to other segments demanding highly power efficient processing.  

    Combined with other indications within the computing industry, these developments underscore the Group's confidence that it continues to
be well placed at the leading edge of a fundamental trend within computing towards multi-core processing 

    Strategy

    In September 2007 the Group announced its plans to develop an indirect sales model, working with partners and distributors to expand
ClearSpeed's international routes to markets.  This resulted in a reorganisation and rationalisation of the cost base during Q4 2007.

    ClearSpeed will now commence the next phase of this reorganisation in order to significantly reduce the Group's cost base whilst at the
same time maintaining its ability to:

    *     Focus on its core competencies of advanced silicon design and programming tools
    *     Extend its indirect sales model and develop engagements with a key set of partners
    *     Widen its addressable markets
    *     Maintain a strong financial position by significantly reducing cash-burn; and 
    *     Accelerate the development of the Group's patenting and patent exploitation strategy

    While retaining a team in the US, the reorganisation will involve transfer of a number of functions from ClearSpeed's US office in San
Jose California, to its UK office, so reducing the direct sales force and associated sales support functions.  

    As part of the reorganisation, the Group will take a one-time charge of £0.5m. The annualised savings from the reorganisation are
expected to exceed £3.0m.  The Group's cash position at 30 June 2008 was £14.0m.

    Board change

    As a result of these changes, the Group will consolidate its finance function in Bristol. Chief Financial Officer, Andy Kroese, will
step down from the Board and the Company as part of the process at the end of July 2008. Chris Allen, the Group's Financial Controller, will
assume Andy Kroese's responsibilities with immediate effect.

    Tom Beese, ClearSpeed Chief Executive Officer commented:

    "The successful launch of the CSX700 processor was a major milestone and confirms ClearSpeed as a world leading provider of accelerator
technology. Focusing on our core strengths and partnering throughout the value chain is the right strategy to exploit and protect the
company's valuable offering to the market."


    Enquiries:

 ClearSpeed Technology plc                     0117 317 2000
 Tom Beese, Chief Executive Officer
 Andy Kroese, Chief Financial Officer

 College Hill                                  020 7457 2020
 Adrian Duffield/Jon Davies

 KBC Peel Hunt (Nominated Adviser and Broker)  020 7418 8900
 Oliver Scott / Richard Kauffer

    Note to editors

    ClearSpeed Technology is a semiconductor company that delivers the world's most advanced parallel processing solutions for the most
challenging applications ranging from commerce to science to security. This leadership exists because ClearSpeed is unrivalled in meeting
the most intense processing needs with maximum energy efficiency and full programmability. ClearSpeed's products include chips, accelerator
boards, rack modules, software and support. ClearSpeed has offices in Bristol, UK and San Jose California and has over 100 patents granted
or pending. For more information, visit www.clearspeed.com


This information is provided by RNS
The company news service from the London Stock Exchange
 
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