RNS Number:3171Q
DDD Group PLC
30 September 2003
DDD Group plc
30 September 2003
DDD Group plc ("DDD" or the "Company")
Unaudited interim results for the six months ended 30 June 2003
The directors are pleased to present the unaudited interim results for the six
months ended 30 June 2003.
During the six months ended 30 June 2003, the Company reported turnover of
#164,000 (2002: #70,000), a 134% increase, and an operating loss of #1.075
million (2002: #1.622 million), a 34% decrease. Net assets at 30 June 2003 were
#3.325 million (2002: #5.456 million) and the Company's cash balance at that
date was #2.903 million.
The Company remains focused on three distinct market segments, Public Space
Entertainment, Professional and Consumer. The majority of the Company's revenues
have thus far been derived from the Public Space Entertainment segment. However,
with the recently announced software licensing agreement with Sharp Corporation
to provide software and content for their new range of switchable 2D/3D laptop
PCs, the Company envisages a significant shift in the mix of revenues towards
licensing royalties in the Professional and Consumer market segments.
The Company also anticipates further growth from the Professional market segment
as its relationship with Silicon Graphics matures and the competitively priced
3D laptop PCs from Sharp Corporation become available for resale in the fourth
quarter of 2003.
Commenting on the interim results, Paul Kristensen, Chairman of DDD Group plc
said: "We are pleased with the progress that has been made by the Company in the
first six months of the year. We are seeing the impact of the cost saving
measures that were implemented in the second half of 2002 and these are enhanced
by our increasing sales, predominantly from the use of 3D displays in trade show
and promotional events.
The management team has worked hard to create a diversified revenue stream. The
software and content licensing agreement with Sharp Corporation validates DDD's
approach and demonstrates the role that DDD can play in the introduction of mass
market 3D display products for professional and consumer users. We believe the
Company is well positioned to capitalise on this emerging market through further
commercial alliances with substantial partners."
Notes to Editors:
Background and Technology
Based in Santa Monica, California, DDD's goal is to bring 'glasses free' 3D
applications and content to mass market professional and consumer end users (
www.ddd.com).
Its patented technologies enable:
* 3D viewing without glasses;
* supply of 3D content through 2D to 3D conversion;
* simple integration of interactive computer graphics applications with 3D
displays; and
* concurrent delivery of content in 2D and 3D formats via DVD and broadcast
networks.
DDD's proprietary technology provides 3D content through the conversion of
existing 2D content to 3D. This 2D-compatible-3D content may be viewed in 3D
without glasses on suitably adapted LCD or plasma flat screen 3D displays
available from a range of display manufacturers, using DDD's proprietary
software and hardware.
History
DDD commenced business in 1993 as a research and development company,
researching, developing and patenting 3D content and delivery and display
technologies.
DDD Inc's shares traded on the CDNX until January 2002 when DDD effected a
reorganisation whereby DDD acquired the entire issued share capital of DDD Inc
by way of a share for share exchange.
DDD's shares are now listed on AIM www.prices.londonstockexchange.com/info.asp?
sedol=3112935 (see also http://finance.yahoo.com/q?s=ddd.l) under the trading
symbol DDD.L.
Following several years of extensive investment in research and development, DDD
has developed a comprehensive range of software and hardware products, protected
internationally by key patents. DDD expects that these products and the
underlying intellectual properties will be essential to the full-scale
commercial adoption of 3D applications and display devices in a number of
professional and consumer markets. DDD is actively involved in the 3D
Consortium, a group of leading consumer electronics and software companies
formed in 2003 to coordinate the standards that will be required for the
successful global introduction of 3D.
Markets
DDD's short term market development strategy is focused on the introduction of
its TriDefTM 3D TV systems into the retail display and trade show market. DDD
provides complete solutions to its customers including 3D LCD and plasma display
sale or rental, software tools and content conversion services.
The Company also provides solutions for the professional user for 3D displays in
scientific and visualization markets. Here the company enables third party
applications to operate in conjunction with advanced 3D displays through
software development and licensing. DDD has partnered with Silicon Graphics in
order to bring 3D LCD and plasma display solutions to end users in a number of
industries including automotive and aerospace design, molecular modeling for
pharmaceutical and chemical companies, architecture and military simulation/
visualization.
Simultaneously, DDD is creating licensing relationships with consumer
electronics manufacturers to license its software technologies and content to
expand the range of applications available on the new generation of 3D laptop
PCs and desktop displays. DDD has a license agreement with Sharp Corporation
that provides a range of DDD's software and 3D content pre-installed on Sharp's
new 3D notebook computers equipped with Sharp's innovative switchable 2D/3D LCD.
In the medium to longer term, DDD is also creating commercial relationships with
Hollywood studios and broadcast networks in order to bring 3D DVD and 3D TV to
the consumer market. The Company expects that, as the installed base of
professional and consumer 3D displays grows, there will be an established market
for the distribution of 3D content on DVD and via broadcast. Here DDD expects to
provide software tools and services that enable existing libraries of
conventional 2D content to be converted to 3D for distribution to end users in
DDD's proprietary 2D compatible 3DTM format.
For further information:
DDD Group plc
Chris Yewdall, Chief Executive Officer Tel: 001 310 566 3340
Mark McGowan, Vice President, Finance
Summarised Consolidated Profit and Loss Account
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2003 2002 2002
--------- --------- ---------
#'000 #'000 #'000
Turnover 164 70 182
Administrative expenses (1,239) (1,692) (2,971)
--------- --------- ---------
Operating loss (1,075) (1,622) (2,789)
Net interest 58 77 160
--------- --------- ---------
Loss on ordinary activities before (1,017) (1,545) (2,629)
taxation
Tax on loss on ordinary activities - - -
--------- --------- ---------
Retained loss for the financial period/ (1,017) (1,545) (2,629)
year
========= ========= =========
Basic loss per share (2.9p) (4.4p) (7.5p)
========= ========= =========
Summarised Consolidated Statement of Total Recognised Gains and Losses
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2003 2002 2002
--------- --------- ---------
#'000 #'000 #'000
Loss for the financial period/year (1,017) (1,545) (2,629)
Currency differences on foreign currency 233 52 (217)
net investments
--------- --------- ---------
Total recognised losses for the financial (784) (1,493) (2,846)
period/year
========= ========= =========
Summarised Consolidated Balance Sheet
Unaudited Unaudited Audited
as at as at as at
30 June 30 June 31 December
2003 2002 2002
--------- --------- ---------
#'000 #'000 #'000
Fixed assets
Intangible assets 77 96 90
Tangible assets 320 878 427
--------- --------- ---------
397 974 517
--------- --------- ---------
Debtors: amounts falling due after 90 135 131
more than one year
--------- --------- ---------
Current assets
Debtors 139 131 138
Cash at bank and in hand 506 464 2,048
Investments in money market deposits 2,397 4,345 1,750
--------- --------- ---------
3,042 4,940 3,936
--------- --------- ---------
Creditors: amounts falling due within (204) (593) (279)
one year
--------- --------- ---------
Net current assets 2,838 4,347 3,657
--------- --------- ---------
Total assets less current liabilities 3,325 5,456 4,305
--------- --------- ---------
========= ========= =========
Capital and reserves 3,325 5,456 4,305
========= ========= =========
Summarised Consolidated Cash Flow Statement
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2003 2002 2002
--------- --------- ---------
#'000 #'000 #'000
Net cash outflow from operating activities (934) (1,002) (2,394)
Returns on investments and servicing
of finance
Interest received 58 83 102
Interest paid - (6) (6)
--------- --------- ---------
Net cash inflow from returns on 58 77 96
investments and servicing of finance
--------- --------- ---------
Capital expenditure
Purchase of tangible fixed assets (14) (45) (78)
Purchase of intangible fixed assets - (49) (63)
Sale of tangible fixed assets - 195 460
--------- --------- ---------
Net cash (outflow)/inflow from capital (14) 101 319
expenditure
--------- --------- ---------
Management of liquid resources
Investment in money market deposits (647) (4,345) (1,697)
--------- --------- ---------
Financing
Issue of shares - 7,000 7,105
Expenses paid in connection with issue of - (1,559) (1,559)
shares
Redemption of shares - (50) (50)
Repayment of short-term borrowings - (193) (193)
Capital element of finance leases (5) (26) (39)
--------- --------- ---------
Net cash inflow from financing (5) 5,172 5,264
--------- --------- ---------
(Decrease)/increase in cash (1,542) 3 1,588
========= ========= =========
Notes to the Interim Financial Information
1. Basis of preparation
The summarised financial information as at and for the six month periods ended
30 June 2003 and 30 June 2002 are unaudited and do not constitute statutory
accounts for the purposes of section 240 of the Companies Act 1985. This interim
financial information has been prepared in accordance with the applicable United
Kingdom accounting standards and under the historical cost convention. The
results for the year ended 31 December 2002 are an abridged version of the full
accounts for that year that have been filed with the Registrar of Companies. The
auditors' report on the accounts was unqualified.
2. Loss per share
The calculation of the loss per share is based on the losses attributable to
ordinary shareholders divided by the weighted average number of shares in issue
during each period. The weighted average number of ordinary shares outstanding
during the six month periods ended 30 June 2003 and 30 June 2002 and the year
ended 31 December 2002 were 35,155,099, 34,998,802 and 34,917,158, respectively.
Potential share issues arising from the Group's share option schemes are not
dilutive due to the losses incurred during each financial period.
3. Taxation
No provision for taxation has been made due to the availability of losses.
4. Reconciliation of movements in shareholders' funds
Unaudited Unaudited Audited
6 months 6 months 12 months
ended Ended ended
30 June 30 June 31 December
2003 2002 2002
--------- --------- ---------
#'000 #'000 #'000
Loss for the financial period/year (1,017) (1,545) (2,629)
Exchange differences 29 (82) (254)
Issue of stock options 8 17 17
Redemption of preference shares - (50) (50)
Issue of shares - 7,000 7,105
Expenses paid in connection with issue of - (1,559) (1,559)
shares
--------- --------- ---------
Net (decrease)/increase in capital and (980) 3,781 2,630
reserves
Capital and reserves at beginning of 4,305 1,675 1,675
period/year
--------- --------- ---------
Capital and reserves at end of period/year 3,325 5,456 4,305
========= ========= =========
5. Net cash outflow from operating activities
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2003 2002 2002
--------- --------- ---------
#'000 #'000 #'000
Operating loss (1,075) (1,622) (2,789)
Depreciation and amortisation 143 204 395
Issue of stock options 8 17 17
(Gain)/loss on sale of tangible fixed - (1) 27
assets
Loss on sale of intangible fixed assets - 2 1
Decrease in debtors 40 1,454 1,648
Decrease in creditors (75) (1,114) (1,506)
Foreign exchange differences 25 58 (187)
--------- --------- ---------
Net cash outflow from operating activities (934) (1,002) (2,394)
========= ========= =========
6. Reconciliation of net cash outflow to movement in net funds
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended
30 June 30 June 31 December
2003 2002 2002
--------- --------- ---------
#'000 #'000 #'000
(Decrease)/increase in cash in the (1,542) 3 1,588
period/year
Cash inflow from increase in liquid 647 4,345 1,697
resources
Cash inflow from financing 5 219 232
--------- --------- ---------
Change in net funds resulting from cash (890) 4,567 3,517
flows
Effect of foreign exchange changes 53 1 -
--------- --------- ---------
Movement in net funds in the period/year (837) 4,568 3,517
Net funds brought forward 3,740 223 223
--------- --------- ---------
Net funds carried forward 2,903 4,791 3,740
========= ========= =========
7. Analysis of changes in net funds
At beginning Cash flow Exchange At end
of period movement of period
--------- --------- --------- ---------
#'000 #'000 #'000 #'000
Unaudited 6 months ended 30 June 2003
Cash at bank and in hand 2,048 (1,542) - 506
Investments in money market 1,697 647 53 2,397
deposits
Finance leases (5) 5 - -
--------- --------- --------- ---------
3,740 (890) 53 2,903
========= ========= ========= =========
Unaudited 6 months ended 30 June 2002
Cash at bank and in hand 460 3 1 464
Investment in money market - 4,345 - 4,345
deposits
Finance leases (44) 26 - (18)
Debt (193) 193 - -
--------- --------- --------- ---------
223 4,567 1 4,791
========= ========= ========= =========
Audited 12 months ended 31 December 2002
Cash at bank and in hand 460 1,588 - 2,048
Investment in money
market deposits - 1,697 - 1,697
Finance leases (44) 39 - (5)
Debt (193) 193 - -
--------- --------- --------- ---------
223 3,517 - 3,740
========= ========= ========= =========
This information is provided by RNS
The company news service from the London Stock Exchange
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