ARTA.L Regulatory News (ARTA)

16 November 2012

Artilium plc

Trading Update

Artilium plc (AIM: ARTA, the "Company"), the AIM quoted provider of innovative telecommunication software and solutions, announces that it now expects its results for the 12 months to June 2012 to be lower than market expectations, principally as a result of revenue recognition under International Financial Reporting Standards (IFRS), some delays in customer orders and the decision to recognize an impairment deriving from a bad debt.

During the audit process Artilium decided, in agreement with its auditors, to only partly recognise revenue from a software licence. This is expected to have a positive impact on future financial years which are now expected to benefit from the recognition of these revenues.

Secondly, some customer orders were delayed during the financial year but have since materialised in the first quarter of the new financial year.

Thirdly, an unexpected bad debtor impacted the results; however, in solving this issue, a major customer contract was secured and telecom assets were recovered into Artilium ownership.

Despite these one-off effects, management expects the coming results to show a positive turning point in Artilium's software business and is therefore optimistic on the outlook and the Company remains sufficiently funded on an operational basis. In July this year the management team was strengthened by the appointment as CEO of Willem van den Brink and much progress on cost savings and finding new promising sales leads has been made.

The consolidation of United Telecom is proceeding on track. Several projects to deliver the expected synergies with the acquired business are in their implementation phase.

Artilium expects to publish its audited results for the year to 30 June 2012 during the week of 3 December 2012.

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About Artilium

Artilium is publicly quoted on the AIM market of the London Stock Exchange and has offices in Belgium and the United Kingdom. Founded in 1995, Artilium helps fixed and mobile telecom operators to quickly and affordably deliver tailor-made products to many niche markets through its scalable software-based service platform, ARTA. Being exclusively grounded on Microsoft technology, ARTA provides a platform that enables the integration of telecom and IT infrastructures while opening up to third-party developers to deliver a potentially unlimited range of consumer and enterprise applications. Artilium currently has clients in 11 countries that service millions of end users.