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4 Aug 2008 07:00
Embargoed Release: 07:00hrs Monday 4th August 2008
iPoint-media plc ("iPoint" or "the Company") Trading Update iPoint (AIM: IPNT) announces a trading update for the six months ended 30 June2008. Over the period, the Company has been involved with one of the world'sleading vendors to the telecoms market in major tenders, which in some casesare in the final phase after undergoing trials. However, slippage has occurredas a result of the major telecommunications companies taking longer to commitfunds to prospective 3G video calling related projects. Accordingly, contractswhich the Company expected to be signed in the first half of the year have notyet been signed. As a result, the Company expects to report an unaudited lossfor the six months ended 30 June 2008 of approximately ‚£0.75 million.The results for the full year to 31 December 2008 are largely dependent oncontracts that are expected to be signed in the second half of the year,particularly the fourth quarter. Given the results for the six months ended 30June 2008 and the current trend of longer lead times for projects to beconcluded and contracts to be signed, the Directors consider that the revenuefor the year ending 31 December 2008 will be below market expectations.The effect of this expected shortfall in revenue and the continuing strength ofthe shekel, which is the currency in which most of the costs of the Company areincurred, is expected to result in a larger loss before taxation for the yearending 31 December 2008 than market expectations, although the Directors expectthat the Company will be profitable in the fourth quarter of the year ending 31December 2008.
Muki Geller, chief executive officer of iPoint-media, commented:
"It is disappointing that due to reasons out of our control, we are seeinglonger lead times for new deals than we had previously expected and that thiswill impact our results for the year. In the current economic climate, thistrend is not surprising, however, we remain focused and are pleased withprogress to date. The continued interest from major telecoms players evidencesthe attraction of leading products such as our `Vitrage' video callingplatform." -Ends- ENQUIRIES:iPoint-media plc Muki Geller +(0) 972 544 450 667Gerald Raingold +44 (0) 7798 915511 John East & Partners Limited David Worlidge +44 (0) 20 7628 2200 Bidhi Bhoma St Helen's Capital plc Ruari McGirr +44 (0) 20 7628 5582Mark Anwyl Hansard Group Vikki Krause +44 (0) 20 7245 1100
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