Update to Annual Financial Report

 

TIDMNTY 
 
RNS Number : 2281M 
Network Technology PLC 
19 May 2010 
 

19 May 2010 
 
 
     Update to Annual Financial Report and proposed shareholder resolutions 
 
Further to the announcement made on 19 April 2010, Network Technology Plc (the 
"Company") announces that it has now been able to meet with its auditors and 
start the audit work for the annual report and accounts for the year ended 31 
March 2010. It should therefore be able to complete its audited accounts in time 
and comply with the listing rules in this respect. 
 
The Company further informs shareholders that it will discontinue a large number 
of legacy products of its Token Ring, Twinax and Router, Hub and Switch lines. 
This is a direct result of auditing standards not having the flexibility to 
adequately treat slow moving inventory of those product lines. Legacy products 
normally get sold over a longer than usual period and gaps in sales of those 
products of more than one year are common.  An inevitable effect of this 
treatment of legacy products will be a significant write down of those 
inventories which will likely result in the Company reporting a loss for the 
year despite an increase of more than 40% (unaudited) in sales during the 
period. 
 
The company will continue to focus on its FollowMe  Printing and ActiveLED(TM) 
Lighting products and controls.  The discontinuation of our legacy products will 
provide the Company with additional space for the manufacturing storage of these 
faster growing product lines. 
 
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