Technical issue causes erosion of margin (4381A)
01 Fevereiro 2011 - 6:01AM
UK Regulatory
TIDMPTV
RNS Number : 4381A
PeerTV PLC
01 February 2011
1 February 2010
PeerTV PLC
("PeerTV" or "the Company")
Technical Issue causes erosion of margin in second half 2010
PeerTV (AIM:PTV), a provider of technology solutions for the OTT
(TV over the internet) market, announces that, as a result of
certain technical problems, it has incurred additional costs which
will have a material negative impact on the profit margin for H2
2010.
The first issue was a technical problem which has arisen in the
interaction between the HDMI and WiFi functionalities of their
PeerStation. This issue was at first intermittent and limited to
certain customers and was not considered material. Subsequent
analysis has revealed that the problem was more broadly based and
was a problem of hardware configuration and not of software. The
Company believes that it has resolved the problem for the
production of new set top boxes and an upgrade for boxes already
installed has now been developed.
There was also an issue with the lead time for the supply of
Sigma chips which caused manufacturing delays and hence sales
delays. While there is no indication that this is currently an
issue, it is outside the sphere of influence of the Company and may
occur again in the future.
The final cost impact, in particular for the post installation
fix, is not yet known but is expected to have a material negative
impact on the profitability for the second half of 2010.
To better manage production and outsourcing issues the board is
evaluating a potential acquisition of an outsourcing manufacturer
in which PTV would aquire the merger partner with shares. If such
transaction were to come to fruition it would require shareholder
approval and may constitute a reverse takeover under AIM Rules. The
board will keep the market updated on this issue.
Eatamar Drory, Chairman of the board and Chief Technology
Officer commented:
"While it is unfortunate that a relatively minor technical issue
is expected to have a significant impact on our financial
performance, it is to the credit of the technical team here at
PeerTV and our good working relationship with our clients that we
were able to identify the issue to be a problem at the
manufacturing level and that we have found a solution that both we
and our clients are comfortable resolves the issue. We are also
evaluating ways to strengthen our manufacturing and QA procedures
and capabilities to avoid such issues in the future."
Further enquiries:
PeerTV Plc +(0) 972 9740
Eatamar Drory Chairman of the Board 7315
Libertas Capital Corporate Finance Limited +44 (0) 20 7569
Thilo Hoffmann/Andrew McLennan 9690
Notes to the editor:
PeerTV provides end to end hardware and software solutions for
providers of Internet TV services delivered via broadband internet
connections. The solutions allow the Company's clients to provide
full scale internet based TV services at a fraction of the price of
traditional broadcasting technologies.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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