RNS Number:0637M
Citel PLC
18 January 2008


18 January 2008


                                   Citel plc

                           ("Citel" or the "Company")


                                 Trading Update


The Board of Citel announces that, despite substantial growth in sales of its
core Portico TVA product, it is now unlikely that the Company will achieve
market forecasts for the year ending 31 March 2008.


In the past few months the Company has reduced staffing levels and sought to
realign its cost base in light of trading. The Company continues to manage its
cost of sales by focusing on selling the Company's products through commercial
sales channels as well as directly to Tier 2/3 telecommunication carriers.
Recently the sales strategy has also included IP PBX providers, in order to
provide an integrated solution sale from a single vendor, to the enterprise
clients. It remains difficult to predict the timing of the benefits of direct
selling efforts to large entities, a strategy that has been in place for the
past six to nine months.


As at 15 January 2008 Citel had cash of $0.55 million and receivables of $0.81
million. In addition to the cash balance, the Company has an undrawn,
receivables-based bank facility and no long term debt. The Company's current
monthly cash burn rate is approximately $0.3 million. Whilst progress has been
made the Directors note that additional funding will be required in order to
reach cash flow break even.


Citel intends to announce its preliminary results for the year ended 31 March
2008 in July 2008.



About Citel plc


Citel enables SMBs and large enterprises to realize the cost and productivity
benefits of IP telephony while at the same time leveraging their existing PBX
infrastructure. Businesses with single or distributed locations, and PBX
vendors, can now deploy next-generation IP applications and services at their
own pace, with little business disruption by installing Citel's TVA Portico
products. Service providers can deploy hosted IP telephony services, without
having the client rip-and-replace existing PBX handsets and LAN cabling.
End-user training is also eliminated for the desktop client. Citel is a publicly
traded company with corporate headquarters in Seattle, with R&D/ Product
Development staff in Nottingham, England (UK). For more information, visit
www.citel.com.



Enquiries


Citel   Jose David, Interim CEO     001 206 965 8925


Panmure Gordon Dominic Morley       +44 (0)20 7459 3600
        Giles Stewart
        Andrew Collins






                      This information is provided by RNS
            The company news service from the London Stock Exchange

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