3 Nov 2009 07:00
Tuesday, 3 November 2009
Amino Technologies plc
("Amino" or the "Company")
Pre-Close Trading Update and Board Appointment
Amino Technologies plc (LSE: AMO), the IPTV specialist, provides the following update on trading ahead of the close of its financial year on 30 November. Whilst operational progress during the second half of the year has been solid, due to order slippage and component shortages the Board now expects that its financial performance for FY 2009 will be significantly below market expectations and anticipates posting a material loss in H2.
In our results announcement of 18 August, the Board of Amino (the "Board") explained that it had continued to make good progress during the first half of the year in certain key areas, namely managing the transition from MPEG-2 to MPEG-4; in continuing to streamline and better manage its cost base; and in improving sales performance in the important North American market.
The Board can now confirm that sales in the half are now predominantly MPEG-4 and that the transition is all but complete. This means that H2 2009 will be one of the best periods for order intake since the Company's inception. This was supported by a number of important competitive wins of which Tele2 in Europe and Pioneer in North America have already been announced. Positive sales traction in North America confirms that the macro-economic climate and demand for our products in that region are also improving.
However, a number of factors have combined during the half to mean that we now expect our financial performance to be below expectations. First, orders that we had expected to close in the period have not closed and we are now looking to close them in FY 2010. Secondly, fulfilling booked orders has proved challenging due to component shortages at our suppliers which is likely to prevent us completing those orders and recognising the revenue in this financial year.
The Company has substantially reduced its cost base during the half and, now that the MPEG-4 heavy investment period is over, plans to reduce the FY 2010 cash operating cost base by over £3m compared to the current year and £2m compared to our H2 run-rate.
The foundations for a better performance in FY 2010 are in place. The combined impact of this leaner cost base, improved order intake and healthy backlog into FY 2010 will, the Board believes, provide a solid platform for growth. The Company retains a strong balance sheet with net cash balances of £8.0m at 31 October 2009.
Commenting on the announcement, Keith Todd, Amino Non-Executive Chairman, said:
"2009 has been a disappointing year financially, against a backdrop of turbulent and difficult trading conditions for our customers. However, we exit the year in better shape than at the half year as a leaner and more focused company that is better positioned to capitalise on the transition to IP-connected devices in the home. Our strong order intake proves the continuing attractiveness of our products and we are particularly encouraged by the progress we have made in transitioning from MPEG-2 to higher specification MPEG-4 and HD product lines. We are confident as a Board that we have in place a solid platform for growth in 2010 and beyond."
Board Appointment
The Company also announces today that Michael Bennett of Azini Capital (www.azini.com) will join the Amino Board as a Non-Executive Director, effective as of 18 November 2009. Michael has a strong career track record of driving and enhancing the strategic value of technology companies and adds valuable market expertise to the Board. A former McKinsey consultant, Michael joined LMS Capital in 1998 to establish its UK venture capital operations where he built and managed a £120 million portfolio of technology investment assets. Azini Capital is an investor in Amino Technologies plc.
Azini's total shareholding in Amino at the close of business on 2 November 2009 was 7,888,916 shares, representing 13.63 per cent. of the issued share capital of the Company.
The following disclosure is required by the AIM Rules:
Full name:
Michael Andrew Bennett
Age:
44 years
Current directorships:
Antenova Limited, Azini Capital Partners LLP, Azini (FP) LP, Azini 1 (GP) Limited, Azini Nominees Limited, Lynx Capital Ventures GP Limited
Previous directorships:
7 Global Group Limited, Corizon Limited, Entuity Limited, First Index Group Limited, Kizoom Limited, ProStrakan Group Plc
Companies in liquidation where the individual was a director at the time or within 12 months preceding the event:
Power X Limited
Power X Networks Inc. (the US subsidiary of Power X Limited)
Dreamangel Limited (formerly GroupTrade.Com Limited)
There is no further information required to be disclosed pursuant to Schedule 2(g) of the AIM Rules.
For further information please contact:
| Amino Technologies: | +44 (0)1954 234100 |
| Keith Todd, Non Executive Chairman | www.aminocom.com |
| Andrew Burke, Chief Executive Officer | |
| Stuart Darling, Chief Financial Officer | |
| Financial Dynamics: | +44 (0)20 7831 3113 |
| James Melville-Ross / Matt Dixon / Nicola Biles | |
| KBC Peel Hunt Ltd: | +44 (0)20 7418 8900 |
| Jonathan Marren / Matthew Tyler |
About Amino
Amino specialises in digital entertainment solutions for IPTV, Internet TV and in-home multimedia distribution. Amino's range of software and set-top box systems can be tailored for telecom, broadcast and hospitality firms to offer highly scalable and targeted services. The award-winning AmiNET™ and Mood range is used by leading service operators in over 80 countries.
Amino's 'AssetHouse' technology enables content producers, telecoms companies, broadcasters and web TV firms to maximise opportunities through better services, targeted content and greater choice.
Listed on the London Stock Exchange AIM, symbol AMO. Amino's HQ is based near Cambridge, UK, with offices in the US, China and Sweden.
For more information, please visit www.aminocom.com
Ends