TOUCHSCREEN maker Zytronic plans to recover from a major dent in sales by doubling annual revenue generated by one of its newest products. The Gateshead company, which employs about 190 people in Blaydon, has been hit by a sharp decline in sales of its specialist products used in cash machines. But the group expects to double sales of its innovative touchscreen product Zypos from £2m in 2006 to £4m this year. Zypos is mainly used in shop cash registers. Last year the AIM-listed company made bullish predictions it would turn over £15m in 2007 and £18m in 2008. However, this has now been adjusted to £11.5m this year and £15m in 2008 after a drop in sales from two of its largest US cash machine customers. The company said the fall in sales would not affect its plans to open a £4m headquarters in Blaydon in October which is expected to create jobs. With sales of Zypos and the firm’s new touch sensor switch product Zyswitch on the up, the company expects to reduce its dependency on the cash machine market. Zytronic chief executive John Kennair said it would reduce the proportion of its revenue generated by cash machine sales from 44% this year to 33% in 2008. Mr Kennair said: “We expected to see a slowdown with one of our cash machine customers, but the whole of the sector in the US has been down. “[The decline] centres on America and we haven’t seen a slowdown in Europe or the Far East. We have had substantial growth in the new product sector and we expect to see quite significant growth going forward.” Mr Kennair also said the company’s increasing focus on new products was not part of a long-term plan to exit the cash machine sector. In a trading update issued by the company yesterday, Zytronic said July sales in cash machine products, mainly through its largest US customers, had been disappointing. The report said: “The directors have no evidence yet of any upturn in the cash machine business during the company’s peak trading months, traditionally from July to October, despite indications from its customers. As a result, the directors believe that, for the foreseeable future, sales to the cash machine sector are unlikely to reach the levels achieved during the course of 2006.” The report also said the new production centre in Blaydon remained on track to open by October. | 
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