Improved outlook for the 2H and beyond after poor start to the year.
CAMBRIDGE UK, 1 November 2005 TTP Communications plc [LSE; TTC] announces its interim results for the six months ended 30 September 2005
- Sales revenues down 33% to 20.7m (2004: 31.0m);
- Pre-tax loss 15.4m (2004 restated: 1.8m profit);
- EPS 7.18 pence loss (2004 restated: 0.45 pence profit);
- Sales revenues at TTPCom down 42% to 17.1m (2004: 29.7m);
- Operating loss at TTPCom - before IFRS 2 share option charge - 12.7m (2004 restated: 4.1m profit);
- Sales revenues at ip.access 3.7m (2004: 1.3m);
- ip.access operating loss - before IFRS 2 share option charge - 2.5m (2004 restated: 2.3m);
- R&D investment, including ip.access, increased by 23% to 17.4m (2004: 14.1m).
- 9 Software licences signed (2004: 16) including 3 AJAR licences (7 in total); 1 GPRS (56 in total) and 5 module licences;
- 4 Silicon licences (2004: 9) all Digital Video Broadcast (DVB);
- Number of handsets incorporating our technology estimated as 11m compared with 15m+ last year;
- Agreement signed with Texas Instruments (TI) the number 1 silicon supplier in wireless - to make AJAR available on their GSM/GPRS/EDGE digital baseband processors. Increases total available market for AJAR substantially;
- Significant market interest in AJAR following the announcement of the deal with Motorola;
- Silicon licence deals announced with Silicon Laboratories Inc. and with Skyworks Solutions Inc. for baseband and protocol stack technologies;
- ip.access sales revenues of 3.7m (2004: 1.3m) higher than expected. Funding term sheets currently being reviewed.
Commenting on the results, Dr. Tony Milbourn, Managing Director said:
The first half results have been dominated by the trading performance at TTPCom and as a consequence we have taken a number of actions to strengthen the revenue streams in that business all of which are aimed at increasing the total available market for our software. We are helping new silicon customers get to market; selling our software products to semiconductor companies not using our silicon IP; getting our operating system for feature and low cost phones (AJAR) into Tier 1 handset manufacturers. These actions are now starting to bear fruit. Discussions on the significant transaction mentioned in the trading update are continuing and we anticipate a positive outcome. On this basis, we expect to be operating close to breakeven in the 2H, before restructuring provisions. At ip.access sales revenues in the first half were higher than expected and we signed up 4 new customers in the period. With re-financing discussions at ip.access likely to be concluded early in Q3, and with underlying trading conditions at TTPCom improving, we expect to be able to exit the year on a much stronger footing.
Click here to read more ...