Psion has posted a £5.2 million loss for the first half of 2011, after being hit by supply problems for one of its products.
The result is in contrast to the same period last year when it made a £4.8m profit.
Changes in the manufacturing process have now freed up supply of this product and further launches of modular products are scheduled for the second half of 2011.
Psion has also signed a pan-European distribution agreement with Ingram Micro to enhance indirect sales channels.
The company will look to drive sales of new products, notably the EP10 PDA device and the Omnii platform products throughout the remainder of 2011.