UPDATE: Scientific Digital Imaging Profit Up As Cuts Loom

19th Jul 2010 09:32

(Adds executive comment.) By Jason Douglas Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Digital imaging company Scientific Digital Imaging PLC (SDI.LN) Monday reported a higher fiscal-year profit due to rising sales of its cameras and instruments to university researchers and amateur stargazers overseas, but said any cuts to science budgets in the U.K. could hurt future earnings. Governments across the world are slashing spending in an effort to reduce fiscal deficits and Scientific Digital Imaging, or SDI, said public funding for universities could fall. Chief Executive Phil Atkin told Dow Jones Newswires SDI's sales haven't slowed, but felt it prudent to warn investors its customers may have to trim spending on new equipment if their budgets get reduced. He said the company expects to offset any effects from cutbacks with new products and sales to private firms like drug makers and to consumers. SDI is also scouting for acquisitions to boost sales and profit, said Atkin. There are dozens of small companies offering digital imaging products for niche scientific markets and SDI is eager to play a role in consolidating the industry, he said. It will likely pay for any deal with a mix of cash and shares, Atkin added. SDI, which makes cameras, instruments and software used in fields ranging from amateur astronomy to DNA sequencing, Monday reported a pretax profit of GBP257,730 for the year to April 30, compared to a profit of GBP56,789 a year earlier. The previous year's profit was weighed on by the costs of joining London's junior Alternative Investment Market. Revenue rose 6.4% to GBP7.19 million, as higher sales in the U.S., China and India offset flat sales in the U.K. and Europe, SDI said. A weak pound also helped overseas sales. At 0822 GMT, shares in SDI were flat at 21.5 pence, outperforming a 0.3% lower Alternative Investment Market. SDI joined AIM in December 2008. -By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; [email protected] (END) Dow Jones Newswires July 19, 2010 04:32 ET (08:32 GMT)