Companies: ZEN   

Shares in Zen fell by just over 34% to 48p following the disc drive technology group warning it will not make significant sales of Zen-enabled DVD-ROM drives in 2001 following delays in testing. Zen revealed the problem as it reported results for the first quarter period to 31 March which showed a pre-tax profit of $4.87m compared to $2.39m last time. Sales more than doubled to $182,000 as did research and development expenses, which totalled $3.1m. The company claimed the delays were now behind it although the unsettled PC and components market, which is labouring under price pressures and product oversupply, is still causing uncertainty. The one unequivocal bit of good news concerns the recent acquisition of chip developer, Silicon Value, for $22.25m. Silicon Value's chip designs can reduce the size of a chip by 50%, reducing the cost of the silicon also, which means it will be able to offer products to silicon suppliers under pressure to produce cheaper and smaller chips. Zen has signed a licensing agreement with a DVD video player company, which is already generating revenue in the form of engineering fees, with royalties expected to come through next year. Meanwhile, Zen co-founder and chairman Davidi Gilo has added the role of chief executive to his responsibilties. Former chief executive Emil Jachmann becomes executive vice president and will remain as a director.

Zenergy Power	AIM	£45.8m	104.00p	-2.00p
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