Amino Technologies Reports Increased Profit on Flat Revenue for the Six Months Ended May 31, 2013

Posted by Joe Zaller
Jul 16 2013

UK-based IPTV set-top box vendor Amino Technologies announced that its revenue for the six months ending May 31 2013 were £20.1m, flat compared to the previous year.

Operating profit jumped 735% versus last year to £2.6m.

EBITDA before exceptional items was £3.3m, up 83% from last year.

Amino’s operating profit in the period includes a rebate of £1.7m for tax and duty paid on previously recognized international product sales. Also included in this figure were restructuring charges of £700,000 resulting from the closure of Amino’s Swedish office and transfer of all development activities to Cambridge in the UK.

Investors, who have an average full year revenue target of £43.5m, sent the company’s shares down 5.8% following the earnings news.

Gross margins for the six months ended May 31 2013 were 46.2%, up from 35.4% during the same period last year. The company attributed the margin expansion to migrating customers to the company’s current product range, and the removal of older devices from its product portfolio.

On the product front, Amino said that its new lower functionality device has helped to drive contract and tender wins in markets such as Eastern Europe and Latin America where cost is the principal purchasing driver.

Operating costs in the period were up 12.8% to £6m, due to increased senior and regional sales headcount, higher R&D costs, and staff incentives.

Amino said growth in the pure OTT market is proving attractive. The company said it had several “win back” deals in North America during the period, and secured OTT contracts with a Russian language TV service and Mexican a fiber network operator.  However a previously announced deal with deal with a leading European telecoms operator has experienced some deployment delays, leading to uncertainty around the timings for product roll-out. The Netherlands has returned to normal levels following strong growth last year, and demand remains muted in Russia

“This solid set of results underlines the progress Amino is making against its goal of profitable growth and improvements in shareholder returns, said the company’s non-executive chairman Keith Todd. “During the period, we have enhanced our competitiveness in our markets through a clear and compelling proposition – quality robust products, operational performance and rapid delivery to meet demanding customer expectations. Our ability to flex our portfolio is demonstrated by new contract wins from target customers in both emerging and established markets.”

.

.

 Related Content:

Amino Technologies: Interim results for the six months ended 31st May 2013

.

© Devoncroft Partners 2009 – 2013. All Rights Reserved.

.

 

Comments are closed.

%d bloggers like this: