6 Dec 2010 07:00
6 December 2010
Amino Technologies plc
("Amino" or the "Company")
Period-end Trading update
Amino Technologies plc ("Amino" or the "Company"; stock code: AMO), the Cambridge-based leader in digital entertainment solutions for IPTV, Internet TV and in-home multimedia distribution, provides the following update for the year ended 30 November 2010.
The Company has made good progress throughout the period and expects to report results in line with market expectations, recording a small loss for the year (FY 2009: loss of £8.8m). Recognised sales revenues and unit sales were at record levels and the first half of 2011 begins with a strong order book. This reflects increasing demand from customers for new products launched during the year.
Orders received in H2 2010 totalled 307k units (H2 2009: 280k units; H1 2010: 351k units) representing c. £20.5m of revenues. This contributed to the Company's highest annual order intake at 658k set-top boxes of which 157k units (FY 2009: 115k units) are scheduled for delivery in H1 2011.
Telecom Italia, the Company's first Western European Tier 1 operator customer, has deployed on 1 December the Amino Freedom hybrid/OTT product and global interest in this solution is strong. The Company will recognise the Telecom Italia unit sales in financial year 2010/11. As the deployment occurred shortly after the year-end, inventory is therefore higher being £11.6m (H1 2010: £5.5m; 30 Nov 2009: £3.7m) and cash balances lower at £3.6m (H1 2010: £13.0m; 30 Nov 2009: £9.0m) due to the stock built to fulfil the order.
Cost reduction remains a focus. However, as expected, the transition to higher volume orders, foreign exchange rate movements and higher component prices have affected the Company's ability to improve margins. The Company is now focusing on supply chain management and operational execution to enhance margins in 2011 on the back of the substantial volume growth in 2010.
The Company's market position has strengthened during the year, particularly in its traditional IPTV market, where it has enjoyed significant traction with its new MPEG-4 set-top box range, which now accounts for 80% of sales. Economic conditions in key markets such as North America have improved and the Company is seeing large sales volumes coming from Eastern Europe and European tier 2 operators, including Tele2.
The Company will announce results for the twelve months ended 30 November 2010 in early February 2011.
Commenting on the performance, Keith Todd, Non-Executive Chairman said: "Amino has made a good recovery this year, compared to the previous period. The momentum from the second half of last year has continued, delivering record sales revenues and unit sales booked in 2010. Our newly launched products have been very well received by the market and we have a healthy order backlog to take into 2011. "
For further information please contact:
Amino Technologies +44 (0)1954 234100
Keith Todd, Non Executive Chairman www.aminocom.com
Andrew Burke, Chief Executive Officer
FD +44 (0)20 7831 3113
James Melville-Ross / Matt Dixon / Nicola Biles
finnCap Limited +44 (0) 207 600 1658
Marc Young/Charlotte Stranner - Corporate Finance
Brian Patient/Tom Jenkins - Corporate Broking