RNS Number:2340F
Indigo Vision Group PLC
14 June 2001
13 June 2001
INDIGOVISION GROUP PLC
3rd Quarter Results
9 month financial highlights
- Revenues at #1.1m more than double over the same period of FY 99/00
- Gross profit increases to 52%, 3 points higher than FY 99/00
- Loss before taxation in line with expectation at #4.0m
- Net cash at quarter end of #34.1m
9 month operational highlights
- 29 new application and development partners added
- Customer numbers increased to 69, up from 37 at the start of the year
- Staff numbers increased to 85
- Platform shipments year to date now exceed 1,000
- Baxall and Videology product launches
- Major instalment at Brussels Airport
- VideoBridge-for-Wireless launched today
CHIEF EXECUTIVE, OLIVER VELLACOTT, COMMENTED
"The first nine months of the current financial year have gone well for
IndigoVision, with three new licensees, two which have now launched products
based on our world beating VideoBridge technology. We expect further licences
to be concluded in the final quarter and the first quarter of next year.
Platform shipments, customer numbers, staff numbers and the overall level of
sales continue to rise in line with expectations. More importantly, there is
now increasing evidence that the potential market place is beginning to grasp
the breadth of the product offering that we have, its capability, its low
cost, its worldwide technology lead and its time to market advantage. We
expect further good progress in quarter four."
Enquiries:
IndigoVision Oliver Vellacott (CEO) 0131 475 7200
Alan Bennie (CFO)
Financial Dynamics James Melville-Ross 0207 831 3113
Olivia Cundy
INDIGOVISION GROUP PLC
Results for the nine-month period to
30 April 2001
Chairman's Statement
The strong first half performance of IndigoVision has continued into quarter
three, with record nine month results on all fronts. A particular success was
the speed with which two of our early licencees, signed in January, brought
products to market by May, underscoring the time to market advantage of our
suite of technology.
The heavily increased rate of investment in sales and marketing has widened
awareness and we expect to add more major customers in quarter four. Despite
the difficulties in recruitment reported by many technology groups, we have
continued to add to headcount at the planned rate, and the financial
management of our substantial cash resources and our overhead base continues
to be very sound. In short, IndigoVision continues to perform as planned.
TECHNOLOGY
During the quarter we advanced considerably in the development of our silicon
intellectual property. In the quarter, eight new engineers joined the
development team and additional accommodation was leased to provide capacity
for planned additions to the engineering headcount over the next twelve
months. A patent application has been filed with the European Patent Office.
The patent covers various aspects of the architecture of IndigoVision's
multicodec pipeline system and, as part of IndigoVision's patent strategy,
will be followed by a number of further patents in this field.
IndigoVision has extended VideoBridge into Wireless, allowing live video to be
encoded in real time, transmitted using wireless and viewed on portable
handheld computers and PDA's. This is supported initially on Windows-CE
platforms, including the Compaq iPAQ.
In addition to this, over the coming two months we will be launching an
extensive range of new CCTV products for licensing.
These ground-breaking technical innovations are confirming IndigoVision's
position as technology leader in video-over-IP thereby significantly enhancing
its ability to sign future licenses with major electronics groups.
RESULTS
Revenues for the nine-month period to April 2001 were 226% of the comparable
period for FY 99/00. As anticipated at half year, revenues from platform
shipments predominated in quarter three and comprised 62% of the total revenue
for the quarter of #0.4m. The geographic source of revenues in the quarter was
66% Europe, 21% North America and 13% Asia. These proportions are expected to
change over the next few months in favour of Japan and North America
reflecting the fact that licensed customers are mainly located in these
territories. Platform shipment volumes in the quarter were comparable to
quarter 2 however VB6000 shipments contributed at a higher unit selling price
resulting in higher platform sales revenues and improved gross profit margins.
Research and development expenditure increased to #1.4m, almost double the
comparable period last year (#0.8m), arising from the planned increase in
engineering headcount and additional commitment to partner programmes. Other
operating costs of #4.7m were more than three times the level in the same
period last year. The rate of increase, although less than that experienced in
the first half of the year, results from the continuing investment in sales
resources and marketing activities. Operating losses were #5.5m, compared with
#1.9m in the corresponding period last year. Interest received over the
nine-month period increased to #1.5m and after taking this into account, the
loss before taxation was #4.0m, compared to #1.8m in the same period in FY 99/
00. The loss per share was 5.80p, compared with 4.05p over the comparable
period last year.
Cash resources at the period end totalled #34.0m with net assets at #34.0m
mirroring the cash position.
OPERATIONS AND LICENCES
In the quarter a total of 8 new application or development partners were added
bringing total customer numbers to 69, an increase of 32 since the start of
the year. As anticipated at the half year, no new licensees were added in the
quarter.
In May, two of our licence partners, Baxall and Videology, launched products
based on VideoBridge technology. The four-month product development period
achieved by these partners demonstrates the significant "time to market"
reductions that can be realised by VideoBridge.
Also announced today was the news that we have launched a product suite for
the wireless consumer electronics market. VideoBridge-for-Wireless will allow
users to view live video on handheld mobile devices. A separate announcement
has been released today.
OUTLOOK
With less than three months until the financial year-end, we are confident of
continuing the trend of consistent progress shown in the first three quarters,
and expect a good result for the year as a whole. Looking into next year, we
should start to see a more meaningful return on the substantial investment
made this year in sales and marketing, infrastructure and research and
development. Our confidence in the massive long-term potential of
IndigoVision's world leading technology remains high.
Hamish Grossart
Chairman
13th June 2001
Consolidated profit and loss account
For the 9 months to 30 April 2001
Note 9 months to 30 9 months to 30 Year to 31
April 2001 April 2000 July 2000
unaudited unaudited audited
#000 #000 #000
Turnover 1,122 496 917
Cost of sales 539 253 481
Gross profit 583 243 436
Research and (1,363) (752) (1,115)
development
expenditure
Other operating (4,682) (1,428) (2,662)
overhead expenses
Other operating - 87 88
income
Operating loss (5,462) (1,850) (3,253)
Bank interest 1,503 94 138
receivable
Interest payable and (11) (5) (12)
similar charges
Loss on ordinary
activities before
taxation (3,970) (1,761) (3,127)
Tax on loss on - - -
ordinary activities
Retained loss for the (3,970) (1,761) (3,127)
period
Loss per ordinary 4
share
Basic loss per share (5.80p) (4.05p) (6.99p)
Diluted loss per (5.30p) (3.83p) (6.60p)
share
Consolidated balance sheet
at 30 April 2001
As at 30 April As at 30 April As at 31 July
2001 unaudited 2000 unaudited 2000 Audited
Note #000 #000 #000 #000 #000 #000
Fixed assets
Tangible assets 203 75 106
Investments 30 30 30
233 104 136
Current assets
Stocks 362 190 136
Debtors 810 272 463
Cash at bank and 34,086 3,510 2,467
in hand
35,258 3,972 3,066
Creditors: amounts
falling due within
one year (1,237) (485) (717)
Net current assets 34,021 3,487 2,349
Total assets less
current
liabilities 34,254 3,591 2,485
Creditors: amounts
falling due after
more than one year (128) (168) (168)
Deferred income (5) (2) (1)
Provisions for
liabilities and
charges (54) (28) (34)
Net assets 34,067 3,393 2,282
Capital and
reserves
Called up share 6,849 242 242
capital
Share premium 5 28,849 - -
account
Other reserve 8,563 8,514 8,563
Profit and loss 5 (10,194) (5,363) (6,523)
account
Shareholders' 34,067 3,393 2,282
funds - equity
Consolidated cash flow statement
For the 9 months to 30 April 2001
9 months to 30 9 months to 30 Year to 31
April 2001 April 2000 July 2000
unaudited unaudited Audited
Note #000 #000 #000 #000 #000 #000
Cash flow statement
Cash outflow from operating 6
activities (5,117) (1,864) (2,927)
Returns on investments and
servicing of finance
Interest received 1,503 94 138
Interest paid (11) (5) (12)
1,492 89 126
Capital expenditure and
financial investment
Purchase of tangible fixed (151) (61) (105)
assets
Sale of tangible fixed assets - - -
(151) (61) (105)
Cash outflow before
management of liquid
resources and financing (3,776) (1,836) (2,906)
Financing
Issue of ordinary share 35,456 5,127 5,177
capital
Repayment of loans (58) (7) (45)
New loans - 161 185
Repayment of capital element
of finance leases (3) - (9)
35,395 5,281 5,308
Increase/(decrease) in cash
in the period 31,619 3,445 2,402
Reconciliation of net cash
flow to movement in net debt 7
Increase/(decrease) in cash
in the period 31,619 3,445 2,402
Cash (outflow)/inflow from
(decrease)/increase in debt
and lease financing 61 (154) (131)
Movement in net (debt)/funds
in the period 31,680 3,291 2,271
Net (debt)/funds at the start
of the period 2,237 (34) (34)
Net funds/(debt) at the end
of the period 33,917 (3,257) 2,237
Notes on the results for the nine month period to 30 April 2001
1. This report has been prepared on the basis of the accounting policies set
out in the annual report for the year ended 31 July 2000.
2. This report was approved by the board of directors on 13 June 2001.
3. The comparative figures for the financial year ended 31 July 2000 are
extracted from the full accounts for that year. Those accounts received an
unqualified audit report and have been filed with the Registrar of
Companies.
4. Loss per share
Loss per share is calculated as follows:
Nine months to 30 Nine months to 30 Year to 31
April 2001 April 2000 July 2000
#000 #000 #000
Loss for the period (3,970) (1,761) (3,127)
Number Number Number
Weighted average number of
shares in issue:
For basic loss per share 68,493,520 43,480,870 44,759,879
Shares under option 6,461,058 2,503,928 2,620,840
For diluted loss per share 74,954,578 45,984,798 47,380,719
Basic loss per share (5.80p) (4.05p) (6.99p)
Diluted loss per share (5.30p) (3.83p) (6.60p)
The comparative weighted average number of shares in issue has been adjusted
to reflect the bonus issue of 19 shares for every 1 held on 2 August 2000.
5. Share premium and reserves
Profit & Loss Share Premium
Account Account
#000 #000
At beginning of period (6,523) -
Retained loss for period (3,970) -
Premium on shares issued during period - 28,849
less expenses
Share options charge per UITF 17 299 -
At end of period (10,194) 28,849
6. Reconciliation of operating loss to operating cash flows
Nine months to 30 Nine months to 30 Year to 31
April 2001 April 2000 July 2000
#000 #000 #000
Operating loss (5,462) (1,850) (3,253)
Depreciation 54 33 46
(Increase) in stocks (226) (128) (74)
(Increase)/decrease in debtors (347) (196) (340)
Increase/(decrease) in
creditors and provisions 561 279 493
Share option charges 299 - 204
Movement on deferred income 4 (2) (3)
Net cash inflow/(outflow) from
operating activities (5,117) (1,864) (2,927)
7. Analysis of net debt
At 1 August Cash Other non cash At 30 April
2000 flow changes 2001
#000 #000 #000 #000
Cash in hand and at 2,467 34,086 - 34,086
bank
Debt due after one (168) - 58 (110)
year
Debt due within one (59) 38 (38) (59)
year
Finance leases (3) 3 - -
Total 2,237 33,308 - 33,917
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