TTPComms Is a Supplier of Silicon Intellectual Property and Software to the Mobile Phone Industry

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TTPComms is a supplier of silicon intellectual property and software to the mobile phone industry. We recommended the shares in this column last year, but they have come under pressure recently as the telecoms market has continued to underperform.

There has been negative comment in the market about TTPs ability to retain market share if the mobile devices market moves more towards a Windows/Intel model.

Furthermore, the large handset equipment manufacturers Nokia and Ericsson in particular are increasingly perceived as competitors to TTP as they make their handset technology available to third parties.

The argument in TTPs favour is that, whilst Nokia and Ericsson need to sell to their competitors, TTP is an independent supplier. TTPs full-year results to March 2002 are out next week and the shares look due for a bounce.

At the interim stage, TTPComms continued its impressive growth record. Revenues increased by 61% to pound sterling18.4m and profits were ahead 41% to pound sterling2.5m.

Operating profits from the core business were pound sterling4.3m in the first half, but increased investment of pound sterling2. …