ARTA.L Regulatory News (ARTA)

Artilium plc

("Artilium" or the "Company")

Trading Update

Artilium plc (AIM: ARTA), the AIM quoted provider of innovative telecommunication software and solutions, provides the following update on trading.

In the final results statement for the year ended 30 June 2015, released on 29 October 2015, the Company stated that the investment made in improving the fundamentals of the Group's performance, together with the recent acquisitions, would form the basis of the next phase of the business which would see growth in our customer base and revenues from our software products. The Company still believes that the positive impact from work already undertaken will manifest itself but is disappointed to see that the impact has been slower than expected to date in the year ended 30 June 2016.

A number of high margin projects for customers of Artilium have been delayed which has impacted the Group's performance at both the revenue and EBITDA levels. These projects are still expected to complete and so their impact has been delayed rather than lost. In conjunction with this, there have been delays to the start dates of a number of United Telecom's new MVNOs. Again, these projects are contracted and expected to complete in due course. The early stages of MVNOs are lower margin than more established ones due to the cost that has to be incurred in the early stages to secure customers to the platform.

As a result of the delays in the implementation of a number of projects the Company now expects to report revenue of approximately €4.3 million and adjusted LBITDA of approximately €0.3 million for the six months ended 31 December 2015. The directors are of the opinion that these results will lead to year end revenues of between €10 million and €11 million (2015: €7.7 million) and expect adjusted EBITDA for the year ended 30 June 2016 to be similar to the year ended 30 June 2015.

The Company expects to announce its half year results on 21 March 2016. The Company continues to explore further complimentary acquisition opportunities.

Bart Weijermars, Artilium's CEO, said:

"While the pace of growth is somewhat slower than expected, the Company is making steady progress and is pleased to see that the order book is considerably stronger than this time last year. New opportunities in the machine to machine ("M2M") market are being developed from which we expect further growth going forward and we are investing in additional platform capabilities to capture this growing market. The Directors remain confident of the long term prospects of the Company and look forward to updating the market with respect to continued contract and revenue progress in due course."

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About Artilium

Artilium is a demonstrated leader in the development of next generation communication technologies. Artilium's strategy focuses on supporting its customers to successfully grow their business by providing flexible, cost effective and innovative solutions.

Artilium's innovation-driven strategy empowers telecom operators around the globe to face the tremendous challenges ahead. We combine next-generation technology with traditional telecom environments to create exciting new business opportunities for our customers. This ensures that our customers are able to keep up with rapidly evolving market demands while simultaneously growing their businesses. 

ARTA® is the real-time Authentication, Authorization and Accounting (AAA) software that brings a full suite of new functionalities to telecom Operators and virtual Operators. Thanks to ARTA® value-added services portfolio, including for instance AAA of voice, text and data services, VoIP, 3G and 4G compliance, mobile payments and location-based services, our partners are more than ready to meet future customer needs.

Today, multiple renowned national and international telecommunication companies rely on Artilium to deliver voice, text and data services to about 1.5 million end users every day.

Artilium's "Pay-As-You-Grow" model allows us to scale our solutions to the exact needs of our customers. As a latest innovation, Artilium offers its product suite from the Cloud as a PAAS (Platform As A Service), yielding ARTA's scalability, flexibility and proven stability.

Artilium PLC is a publicly listed software company on the London Stock Exchange (LSE/AIM: ARTA).