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30 Jun 2010 07:45
Emblaze Ltd ("Emblaze" or "the Company") TRADING UPDATE
Ra'anana, Israel, 30 June 2010 - Further to the management statement dated 18 June 2010, Emblaze is hereby providing the following updates:
ELSE Mobile
In October 2007, the Company announced that its subsidiary, ELSE Ltd. (formerly Emblaze Mobile), partnered with ACCESS CO. LTD and Sharp Corporation, embarked on an ambitious project targeted to introduce an innovative approach to mobile experience.
In November 2009, ELSE first unveiled the First ELSEâ„¢ mobile device, which was designed to showcase the capabilities and advantages of ELSE Intuitionâ„¢, its new Linux based mobile platform.ELSE's products attracted excitement and interest from potential partners, as well as the media and mobile analysts, for its unique innovation and user experience.
ELSE' management have since invested considerable time and effort to secure a partnership for the sale of the First ELSE mobile devices. While there was encouraging interest in the device by potential partners, management was not able to confirm a deal on terms acceptable to Emblaze to proceed to the production of the device.
Due to critical delays in deliveries and the current status of the project, the board has now decided to cease any further investment towards manufacturing of the First ELSE mobile device and to concentrate efforts only on licensing the ELSE Intuition platform and technology in order to realize its potential upside.
This decision will drastically reduce the Company's operational and development costs and will positively contribute to its route to profitability.
The Company's management believes that this decision aligns well with the Group's overall core competency and skills in the software arena, which includes the following:
Formula Systems
Formula Systems, through its subsidiaries, is engaged in the development, production and marketing of information technology solution and services. Its appealing offerings coupled with aggressive cost-saving measures have made Formula resilient to the recession and enabled its constant growth in revenue and net income. For the period ending 31 March 2010, Formula reported significant improvement in profitability with net income attributable to Formula of $4.8 million, an increase of 41% compared to $3.4 million in first quarter of 2009.
Going forward, Formula will continue to focus on profitability as well as accretive acquisitions.
Emoze Ltd.
Emoze Ltd. is providing transparent, synchronized mobile push-messaging solutions that include email, PIM (contacts and calendar) and a push content platform for consumers, mobile operators, manufacturers and enterprises. Emoze eliminates the need for mobile devices to check or poll servers, allowing for real-time messaging on a far wider range of mobile devices.
Emoze can actually transform most low-end mobile devices into BlackBerry -like devices, providing the same push mail, PIM and content service. Thanks to its novel and efficient technology, Emoze is able to provide the ideal low-cost push solution for the mass market.
ZONE-IP
ZONE-IP Ltd. of which Emblaze holds 71%, is engaged, through its subsidiary Emblaze VCON Ltd., in the development and deployment of high-performance, end-to-end videoconferencing solutions over IP and ISDN networks for enterprises of all sizes, focusing on desk top solutions.
The Company would like to use this opportunity to provide update on additional ongoing matters as follows:
Patent infringement:
In December 2009 the Company informed the market that it has notified Apple2 Inc. that the HTTP Live Streaming Application announced by Apple and its use in Apple's iPhone and iPod2 touch (and recently in the iPad) devices, infringes Emblaze's patents for media streaming technology. In February 2010, the Company also notified Microsoft Corporation that its Smooth Streaming system infringes on Emblaze's patents for media streaming technology.
The Company is currently engaged in discussions with both Apple and Microsoft with the aim to reach an amicable resolution by licensing said IP. The Company will evaluate its course of action pending the results of such discussions and will provide an update to the market when it is appropriate to do so.
HM Revenue Customs
As reported by the Company in April 2007, the Company's UK subsidiary, Emblaze Mobility Solutions Limited, is involved in a dispute with the HM Revenue Customs ("HMRC") regarding a decision made by the HMRC to withhold VAT reclaims and raise an assessment relating to VAT return in the sum of approximately £8.8 millions. The legal proceedings in this matter are still ongoing and it is expected that the closing submissions will be scheduled for July 2010. Further update will be provided following developments in this matter.
Malam claim
On 7 March 2001, Malam Systems Ltd. filed a claim against Geo Interactive Media Group Ltd. (now Emblaze Ltd.) and against its founding directors claiming for approximately 29% of the Company's issued share capital. The Company's legal advisors as well as its founding directors were (and still are) of the opinion that there are no merits to the claim. Nevertheless, the Company's board of directors decided to settle this claim by payment of US$1 million by the Company as the legal costs alone were expected to reach such an amount. The Company expects to recover part of its payment from its insurers.
Enquiries:
Jonathan Shillington/Alistair Scott, Grayling +44 20 7932 1850 alistair.scott@grayling.com
About Emblaze
Emblaze Ltd is a group of technology companies addressing both growth and innovation activities and includes:
Formula Systems , which harbors the following subsidiaries: Magic Software Enterprises Ltd. develops, markets and supports composite application development and deployment platforms with a service-oriented architecture (SOA), including application integration and business process management (BPM), with existing and legacy systems; Matrix IT Ltd. (TASE: MTRX) is one of Israel's leading integration and information technology services companies, active in four principal areas: software solutions and services, software products, infrastructure solutions and hardware products, and training and assimilation.; Sapiens International Corporation N.V. is a provider of IT solutions that modernize business processes to enable insurance and other companies to quickly adapt to changes, ELSE Ltd. (formerly Emblaze Mobile), a design house for cutting-edge mobile technology; EMOZE, a provider of Push Email and synchronisation technology for mobile devices; and ZONE-IP (Emblaze V CON), a provider of wireless video communications technologies and conferencing solutions for operators and enterprise markets over IP networks.
The Emblaze Group is traded on the London Stock Exchange since 1996.
www.Emblaze.com
BlackBerry is a proprietary name of RIM
Apple, iPhone and iPod Touch and iPad are proprietary names of Apple Inc
IIS Smooth Streaming is a proprietary name of Microsoft Corporation
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