& cplSiteName &

Amino Provides Trading Update

Light Reading
News Wire Feed
Light Reading
11/28/2005
50%
50%

CAMBRIDGE, U.K. -- Amino Technologies plc ("Amino"; stock code : AMO), the Cambridge based broadband network software and systems company, presents an update on trading for the year ending 30 November 2005.

The Board is pleased with the strong progress being made. At the time of the half year results announcement in July 2005, we stated clearly that the results for the current year would be biased heavily towards the end of the year and noted the relative immaturity of the IPTV market with the associated challenges in terms of forecasting.

Revenues for the year to 30 November 2005 are expected to be around £24m (£13.8m for the period ended 30 November 2004), with unit shipments of around 315,000 units (174,000 for the year to 30 November 2004). Accordingly, revenue in H2, 2005 is expected to be double that for H1, 2005 and more than the total revenue for the previous year. Profit before tax for the year is expected to be in a range of £1.0m to £1.5m, having reported a loss of £0.9m for H1, 2005 and a pre-tax profit of £0.3m for 2004. During H2, new order intake has been running at an annualised rate of £38m, enabling Amino to start the new financial year with a healthy backlog. Unit pricing and margins continue to be robust and in line with our expectations. Net cash at the year end is expected to be £14m.

Our licensing business model is beginning to gain traction. In a separate statement today, we have announced a major licensing contract with AS Intercom Ltd. for the manufacture and distribution of Amino IPTV set top boxes within the Russian Federation, Kazakhstan and the Ukraine. The contract for this licensing deal has been signed and, on the current assumptions for revenue recognition for 2005 and 2006, will contribute significantly to the expected results for 2005. Other potential licensing negotiations are progressing well.

Amino's key business metrics are maintaining a strong upwards momentum. As at 31 October 2005, 55 customers have taken over 1,000 units (35 at the half year), of which 14 have taken over 10,000 units (11 at the half year); and a further 124 customers are in system trials or small-scale roll-out phase (98 at the half year). These and other customer adoption metrics show a three-fold improvement over the past 12 months. The customer base is spread across all geographies, ranging in size from regional operators ("Tier 2 and 3") to large national telcos ("Tier 1"). In the short term, and as previously indicated, the costs of supporting this broader customer base has had a downward effect on near-term profits. The Board believes that this investment will be fully validated both by the growth potential represented by our many and geographically diverse sales opportunities and by the risk-diversification that this spread provides.

We note that many well known market participants have reported delays in their IPTV developments. While highlighting these effects on our own business in previous announcements, the benefits of Amino's IntAct(tm) software technology and our commitment to customer support have helped our many customers to negotiate these challenges successfully. Against this background, we are pleased to be able to report strong growth at such an early stage in market evolution.

Over the past 3 years, Amino has established itself as a market leader in the growing IPTV market. In H2, 2005, Amino has:

  • been named top worldwide supplier of IP set-top boxes by US technology analyst organisation, ABI research;
  • begun shipments of the AmiNET 124, the world's first single chip MPEG-4 (H.264) IPTV set-top box;
  • been selected for the first High Definition IPTV deployment in the US; and
  • expanded our key supplier agreements by adding a further 3 major tier 1 Systems Integrators: Lucent, Nortel and Unisys.


We note an increased level of M&A activity within the IPTV sector and are encouraged by the support this gives to predictions of substantial market growth and opportunity. Given our market positioning, and strong customer and partner relationships, we see such developments as representing positive opportunities for Amino.

Looking forward, the market continues to show strong growth throughout the world - but with the unpredictability which is characteristic of an early stage market. We continue to be confident of sustaining the growth in revenue and shipments seen in our business over the past three years. Amino believes that the interests of both shareholders and the Group will be served best by ensuring that investment in new products, technologies, commercial partner relationships and customer trials should be sustained at the level required to consolidate its positioning and market leadership. Whilst this investment may reduce near-term profitability, Amino is well placed to benefit from the many opportunities as the market matures.

Amino Technologies plc

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
From The Founder
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
CommScope – Meeting the Demands of Tomorrow's Networks

3|24|17   |     |   (0) comments


Phil Sorksy, Vice President International at CommScope, discusses addressing the challenges faced by service providers today, and as future trends emerge.
LRTV Huawei Video Resource Center
AMS-IX & Huawei's OSN 902

3|24|17   |     |   (0) comments


Huawei shows how its OSN 902 platform helps the Amsterdam Internet exchange to connect the world using multiplexing.
LRTV Huawei Video Resource Center
Huawei's Smart Energy Innovation Center

3|24|17   |     |   (0) comments


In Nuremberg, Huawei showcases its latest capabilities in the digitalization of Internet resources, network infrastructure and intelligence at its Smart Energy Innovation Center.
Valley Wonk
OFC & Hyperscale: A Good Mix?

3|24|17   |   01:50   |   (0) comments


Cloud and telecom players want different types of equipment for their networks, as the chatter at OFC reveals.
LRTV Custom TV
Etisalat on NFV Journey

3|24|17   |   10:37   |   (0) comments


Etisalat is a service provider that prides itself on bringing innovative technologies to the markets it serves. It was one of the first operators to implement 3G and leads the pack in fiber penetration. Now, Esmaeel Al Hammadi, Etisalat's SVP of Network Development, explains the operator's journey to virtualization, beginning with the network core, as well as the ...
LRTV Huawei Video Resource Center
Huawei at CeBIT 2017: Day 3

3|22|17   |     |   (0) comments


Light Reading reports from CeBIT 2017 in Germany, where Huawei is exhibiting on the application of technologies and key business verticals such as transportation, smart city, manufacturing, media and finance.
LRTV Documentaries
No Regrets: Cox's Finkelstein on Fiber & More

3|22|17   |     |   (0) comments


At the Cable Next-Gen Technologies & Strategies event in Denver, Cox's Jeff Finkelstein examines the cable capex conundrum.
LRTV Documentaries
Cable Next-Gen: The 'Mile High' View From Denver

3|22|17   |   11:56   |   (0) comments


Alan Breznick kicks off the Cable Next-Gen Technologies & Strategies event in Denver, casting his thousand-yard stare over cable's current competitive landscape.
LRTV Huawei Video Resource Center
Huawei at CeBIT 2017: Day 2

3|21|17   |   2:27   |   (0) comments


Light Reading reports from CeBIT 2017 in Germany, where Huawei is exhibiting digital transformation solutions around IoT, smart data centers, OpenCloud ecosystem and its newly announced storage-as-a-service solution.
LRTV Custom TV
Driving Better Mobile Customer Experience While Transforming the Mobile Network

3|21|17   |   7:47   |   (0) comments


The Citrix NetScaler mobile gateway is an intelligent traffic management solution which can markedly improve the customer experience provided by mobile operators, even when traffic is encrypted. Critical network services can be consolidated and virtualized using NetScaler. Because of the unique architecture, NetScaler can be deployed on any hypervisor, on a ...
LRTV Custom TV
Mastercard: What's Next for Mobile Payments?

3|21|17   |   7:49   |   (0) comments


2017 marks the fifth consecutive year for Mastercard at Mobile World Congress and it was a great time to reflect on the amazing advances the payments industry has made as well as discuss "What's Next' in the digital commerce future. We spoke to James Anderson, executive vice president of digital payments at MasterCard, about digital wallets to tokenization to ...
LRTV Custom TV
Mastercard: 2 Billion Adults 'Trapped' in Cash Economy

3|21|17   |   03:51   |   (1) comment


Despite advances made in the last several years, two billion adults around the world are trapped in a cash economy and lack what we take for granted -- a safe way to receive, save and use money. Shamina Singh, executive vice president of sustainability and president of the Mastercard Center for Inclusive Growth, chats about how Mastercard is developing new ways to ...
Upcoming Live Events
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
High-Band 5G: Let's Address the Range Question, Shall We?
Dan Jones, Mobile Editor, 3/21/2017
Eurobites: A1, Nokia Turn It Up to 11
Paul Rainford, Assistant Editor, Europe, 3/22/2017
FTTH No Slam Dunk for Cable
Carol Wilson, Editor-at-large, 3/23/2017
Welcome to the Wild West of Privacy
Carol Wilson, Editor-at-large, 3/24/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
At MWC 2017, Qualcomm's CTO Matt Grob talks to Light Reading's CEO and Founder Steve Saunders about the progress being made in the development of the technologies and standards that will underpin 5G.
Animals with Phones
Neither Do We Click Here
Is that a prerequisite?
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.