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4 Dec 2009 07:00
4 December 2009 iPoint-media plc ("iPoint-media" or "the Company") Contract win and trading update
Leading Chinese national MobileTV Operator selects iPoint-media's GOliveStudio
iPoint-media (AIM:IPNT), a provider of live, interactive video applications and content delivery platforms for web and 3G mobile announces that a Chinese national MobileTV operator has selected the Company's new product GOliveStudio (based on the Vitrage video application platform and the GOliveTV application) for immediate deployment. The purchase of the GOliveStudio enables the MobileTV Operator's production workstations to manage, audit and publish video interactive show settings and production.
As part of the contract, the MobileTV operator has also been granted options to purchase additional GOliveStudio licenses for more workstations on the same terms. The contract currently represents a few hundred thousand US Dollars in revenue for iPoint in software licence and services.
Trading update
The Chairman's Statement which accompanied the interim results for the six months ended 30 June 2009 stated that the results for the full year to 31 December 2009 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 experienced slippage of two major tenders with telecoms companies which were anticipated to be signed and delivered prior to 31 December 2009. The Company has now been advised that the decisions on awarding the contracts have been delayed into 2010. As a consequence, the Directors expect that, despite anticipating to breakeven at the earnings before interest and tax, depreciation and amortisation level for the last quarter of 2009, the Company's revenue for the year ending 31 December 2009 will be materially below market expectations and that the Company will incur a significant loss before interest and tax. The Directors believe that the revenue for the year ending 31 December 2009 will be approximately 1.2 million, representing a 37 per cent. increase on the 2008 revenues and the loss before interest, tax, depreciation and amortisation for the year ending 31 December 2009 will be of the order of 0.5 million, representing a 60 per cent. decrease in the loss before interest, tax, depreciation and amortisation when compared to the comparable period in 2008.
Muki Geller, iPoint-media's CEO, commented:
"I am disappointed that the decisions on two major contracts have been delayed until 2010.
Our strategic decision to open a representative office in China earlier this quarter is important for the company and we're happy to have received our first purchase order from a leading Chinese National MobileTV Operator so soon after we started activities in China and hope that it is an indication of the large potential of the Chinese market for our Vitrage video application platform.
Selecting iPoint-media for this project shows again that Vitrage is the platform of choice for the delivery of new interactive visual experiences for the Media companies and the advantage of the iPoint's GOliveStudio product" .
Further enquiries:iPoint-media plc +(0) 972 544 450667 Muki Geller Merchant John East Securities Limited +44 (0) 207 6282200
David Worlidge/Bidhi Bhoma
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