Annual Financial Report (0522K)
08 Julho 2011 - 8:00AM
UK Regulatory
TIDMPTV
RNS Number : 0522K
PeerTV PLC
08 July 2011
8 July 2011
PeerTV PLC
("PeerTV" or "the Company")
Results for the year ended 31 December 2010
PeerTV (AIM:PTV), a provider of technology solutions for the OTT
(TV over the internet) market,
today announces its audited results for the year ended 31
December 2010.
Key Developments
-- Revenue growth of 52% to $5.3 million (2009: $3.5
million)
-- Loss, including costs associated with technical issues
encountered in H2 2010 and early 2011, of $4.4 million (2009
loss:$2.5 million)
-- Several new clients won
-- First installations of MX middleware
-- Admission to trading on AIM on 30 December 2010
-- Two rounds of equity financing raising $3.0 million
-- Technical issues in H2 2010 and H1 2011 severely slowing
deliveries and orders, creating unexpected stress on working
capital
Technical Issues encountered in H2 2010 and early 2011
During the second half of 2010, certain PeerTV customers
encountered technical problems with one type of set top box (STB)
supplied by the Company. At first, these problems appeared to be
intermittent and were not considered out of the ordinary. Attempts
to replicate the problem in the testing facilities at the
manufacturer or at PeerTV's offices were not successful. Eventually
it became apparent that the issue was caused by electronic
interference between the WiFi and HDMI functions of the boxes, due
to the proximity of two wires inside the STB. The close proximity
had been introduced at the manufacturing site, where the final
assembly plan had been made. Similar difficulties were encountered
by other set top box manufacturers during the second half of 2010
due to the increasing number of end users purchasing HDMI TV sets.
In order to remedy this issue a significant number of existing
boxes had to be retrofitted with higher quality antennas and in
relation to new STBs, minor modifications to the internal layout of
the STB were introduced. The problems also caused production
delays, holding off of new orders as clients wanted to ensure that
the issue had been resolved and, in certain cases, the need to
compensate customers for lost revenues caused by delayed delivery.
It was for this reason that the financial results of the Company in
Q4 2010 were lower than expected.
The directors believe that the aforementioned technical issues
have now been solved through the actions detailed above.
Post Year-end Events
In May of this year, the Company announced that it had reached
agreement in principle to acquire Digitek Holdings Ltd., an Israeli
printed circuit board manufacturer having significant experience in
the organization, management and quality control of outsourced
production of electronic equipment in China. A merger of the two
businesses is expected to produce significant operational benefits
to the Company in logistics, quality control and production
management. The merger would constitute a reverse takeover under
the AIM Rules and will require shareholder approval. The proposed
transaction will also be subject to a successful tender offer in
Israel
The Company also underwent a reorganization of the board of
directors with the resignation of Ronnie Jaegermann as CEO and the
appointment of Ofer Barda as CEO, Leon R Nahon as Non-executive
Chairman and Ossie Weitzman as Chief Financial Officer.. This
reorganization is expected to result in significant strengthening
in the corporate governance and reporting functions of the
Company.
Going Concern
During the year ended 31 December 2010 the Company incurred a
loss of $4,399,000 and had net liabilities of $1,253,000 as at the
year end. The Company is in the process of raising additional funds
to provide working capital by way of a private placement. The
directors believe that the proposed merger with Digitek Holdings
Ltd, will produce significant operational benefits and that due to
the aforementioned merger, the current fundraising and the
provision of bridge loan finance since the year end, the Company
can be regarded as a going concern. However, it must be clear that
the future of the Company is dependent on the successful outcome of
the current bid to secure finance and the Company achieving its
trading projections.
Subject to the Company's ability to raise required funds, the
directors considered that it is appropriate to prepare the
financial statements on the going concern basis. However, should
additional financing not be secured in the next twelve months, then
it is unlikely that the Company will be able to continue in its
present form.
The financial information does not include any adjustments that
would be necessary should this basis not be appropriate.
The full audited accounts are available from the Company's
website: www.peertv.com and will be posted to shareholders in the
next few days.
Further enquiries:
PeerTV Plc
Leon Nahon, Chairman
Ofer Barda, CEO +972 974 07315
Libertas Capital Corporate Finance Limited
Thilo Hoffmann/Andrew McLennan +44 (0) 20 7569 9650
Rivington Street Corporate Finance
Dru Edmonstone +44 (0) 20 7562 3350
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR SSLFSAFFSESW
Peertv (LSE:PTV)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Peertv (LSE:PTV)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024