IPTV malaise knocks a third off Amino's shares
A profits warning from IPTV specialist Amino Technologies has wiped a third off its share price.
Wider industry problems with the roll-out of the latest generation, MPEG-4 technology led to a slower than expected uptake of its latest products, in turn hitting revenues.
A statement from the company said it was “disappointed by the current position.”
It read: “The results for the year to 30 November 2006 were expected to be biased strongly towards the second half year when volume shipments of Amino's new MPEG-4 standard definition and MPEG-4 high definition products were scheduled to begin.
“Industry-wide issues already reported by a number of other leading participants in the IPTV market relating to the MPEG-4 technologies have delayed the uptake of these products and, in turn, have delayed Amino's ability to sell and deliver these new products during the latter part of the current financial year. As a result MPEG-4 product shipments to date
have been restricted to trial volumes.”
Results for the full year are now expected to be revenues of around £25m, up £1.5m on last year; with a loss before tax of about £1.5m (FY2005: profit of £60k). Amino's shares were down 27.5p to 55p following the trading update.
Amino said that the volume deployment of MPEG-4 set-top boxes was dependent upon the availability, affordability and integration of a completely new set of technologies including semiconductor chips, conditional access, middleware and internet browser software.
“Whilst the Group has launched three new MPEG-4 products in the year, delays in the availability of semiconductor chips and the the associated chip manufacturer's driver software has had a 'knock-on' effect on the integration of key IPTV software technologies,” the company's trading update stated.
Amino also announced that it would be seeking permssion to institute a share buy-back programme and also that its chairman and two non-exec directors would be stepping down.