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Amino Technologies

  • BY: Andrew Hore |
  • POSTED: 14/02/2010 |

Even though IPTV technology developer Amino Technologies slumped into loss last year it is in a strong position to do much better this year.

A contract for so-called ‘Over-The-Top’ video technology - effectively the likes of YouTube and BBC iPlayer through a set top box - with a major Western European customer for its broadband TV service provides a strong start to this financial year. 

Amino says that it won the contract because its technology was specifically designed for this use whereas rivals adapted their existing products.

Amino swung from a profit of £2.16m to a loss of £8.73m in the year to November 2009. That included £2.86m of impairment and restructuring costs, against £140,000 the previous year. Revenues slumped from £31.9m to £25.3m as contracts were delayed. Component shortages also hampered progress. Cost cutting helped to reduce the effect of lower revenues and the full benefits of the annualised cost reduction from a peak of £19m to £11m will show through this year.

FinnCap forecasts that Amino should be able to get back to breakeven on revenues of £35.6m in 2009-10. A profit of £1.4m is forecast for 2010-11.

Amino should not have anything to worry about from the news that Motorola is putting together its mobile phone and set top box operations.

The balance sheet remains strong with net cash of £9m at the end of November 2009. That figure is expected by FinnCap to fall to £5.7m by November 2010.

There could be consolidation opportunities in the IPTV sector.

At 32.25p a share, Amino is valued at £18.7m. 

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