Forbidden Technologies Expects Significantly Reduced Losses In 2015

Thu, 29th Jan 2015 10:57

LONDON (Alliance News) - Forbidden Technologies PLC said Thursday that the restructuring of its North American subsidiary and a "more normal level" of work on its Forscene cloud video editing platform will lead to a "significant reduction" in its losses for 2015 and beyond.

The company announced that it would be reducing the size of its North American subsidiary, which it established last March, earlier this month with the aim of cutting costs by GBP1.4 million in 2015.

Forbidden said that since December last year it has begun a "major shift" in its sales and marketing strategies. It has upgraded its Forscene platform, and said that whilst it will continue to improve the platform where appropriate costs for ongoing upgrades will be "significantly lower" than its investment in 2014.

The company is shifting focus from short-term revenue supported by hardware sales to what it calls an "all-you-can-eat licensing model", providing flat rate licences for each client to encourage take up of the platform. It believes this will secure recurring revenue, and a higher quality revenue model.

Forbidden had cash of GBP4.36 million at the end of 2014, which it said places it will to execute this new commercial strategy.

"The changes we have made across the company are to enable us to capitalise better on the growing movement into the cloud video space, both in professional and consumer markets," said Chief Executive Officer Stephen Streater in a statement.

Shares in Forbidden are trading up 8.7% at 9.65 pence Thursday morning.

By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews

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