Electronic security systems maker Visonic Ltd. (LSE: VSC; TASE:VSC) has lost one of its major customers. The European customer notified the company that it would not renew its current purchasing agreement when it expires on December 31, 2009. The customer, whose name Visonic did not disclose, accounts for 9% of sales.
Tel Aviv-based also develops telemedication systems to monitor patients, and wireless property protection security systems.
Visonic added that the customer said that it "will continue its professional partnership for years to come, on a different level." Visonic said that it presumes that the customer's purchases over the next 12 months will be substantially lower compared with 2009, but that it could not yet "predict with precision the impact on next year's trading."
Visonic chairman Yaacov Kotlicki said, "We are disappointed to be informed by one our major European customers that the renewal of its purchasing agreement will not take place. We will remain in discussions with this customer to minimize the effects from any change in relationship."
Kotlicki owns 71.66% of Visonic. The company's fell 10% in morning trading in London to ₤0.68, giving a market cap of ₤28 million. The share fell 10.3% by early afternoon on the TASE to NIS 4.35.
Published by Globes [online], Israel business news - www.globes-online.com - on December 24, 2009
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