26 Nov 2008 07:00
26 November 2008 iPoint-media plc ("iPoint" or the "Company") Contract win and trading update
iPoint (AIM:IPNT), a provider of interactive video applications and delivery platforms for web, 3G mobile and media, announces that a Southern European mobile operator has selected "Vitrage", iPoint's 3G video calling interactive platform, as its 3G platform for video calling services. This contract win follows a tender process in which iPoint participated as a partner of a global Telecoms vendor, who also won the core network contract in the same tender. The contract represents a few hundred thousand US Dollars in revenue for iPoint in software licence and services.
The Chairman's Statement which accompanied the interim results for the six months ended 30 June 2008 stated that the results for the full year to 31 December 2008 would be largely dependent on contracts which were expected to be signed in the second half of the year, particularly the fourth quarter. Notwithstanding the above contract win, the Company has continued to experience slippage as a result of the major telecoms companies taking longer to commit to prospective 3G video calling related projects and the Directors now believe that several significant contracts which were anticipated to be signed prior to 31 December 2008 will be delayed into 2009. As a consequence, the Directors expect that the Company will not be profitable in the fourth quarter of the financial year and that the turnover for the year ending 31 December 2008 will be significantly below market expectations and that the loss before taxation for the same period will be significantly greater than market expectations.
In the Chairman's Statement referred to above, the Chairman advised that the Company had been notified by the directors of Nisko Projects Electronics & Communications (1990) Ltd ("Nisko") that they had resolved, subject to the approval of certain shareholders and a board decision by Nisko required under Israeli law, to extend the period of the guarantee given by Nisko until 31 December 2009. The independent directors are in discussions with Nisko regarding the terms of this extension and the quantum of the guarantee. The necessary approvals remain to be sought. A further announcement is expected to be made in early December.
The Company continues to look for alternative finance possibilities which willenable it to balance the delay in revenues in 2008 with the cash flowrequirements of the Company.For further information:iPoint-media plc +(0) 972 544 450 667 Muki Geller +(0) 972 3 607 4444 Simon Marks John East & Partners Limited +44 (0) 207 628 2200 David Worlidge/Bidhi Bhoma Note to Editors
iPoint's 3G video calling platforms offer a flexible means of delivering interactive video calling services. The Company's platforms are currently used by leading mobile operators, service providers and broadcasters in Europe and Asia Pacific.
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