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Date: Thursday 21 Aug 2008

LONDON (ShareCast) - Profit before tax dropped 67% in the first half at microwave radio and satellite transmission products supplier Vislink, which will also buy Pacific Microwave Research Inc for up to $17m.

It reported a drop in pre-tax profit for the six months ended 30 June to £2.29m from £6.97m on revenue up a touch to £46.61m from £46.15m in 2007, in line with expectations.

The group blamed the fall in profits on a change in product mix in its US RF business and weaker operating margins due to the rising cost of working to complete the 2GHz relocation programme.

Vislink has also agreed to pay as much as £9.1m for California firm Pacific Microwave, a specialist in analogue and digital microwave video transmission solutions for law enforcement, Homeland Security, and military applications.

There’ll also be a new chief executive on 1 October after the company said Duncan Lewis, former boss of Mercury Communications (now Cable & Wireless UK) will take over from Ian Scott-Gall.

“The group is trading in line with the directors' expectations,” said chairman Tim Trotter. “Our two recent acquisitions are expected to be earnings neutral in 2008 but earnings enhancing thereafter. The board is confident about the prospects for the group.”

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