Business
Contract Win & Trading Update
Contract Win & Trading Update.
About this update from Orcadian Energy Plc
[{"type":"text","content":"\n Orca Interactive Ltd\n30 December 2005\n\n\n Orca Interactive Ltd ('Orca' or the 'Company')\n\n Contract Win and Trading Update\n\n\nIntroduction\n\nRA'anana, Israel - 30 December 2005 - Orca (LSE: ORCA), a global market leader\nin developing middleware and applications for IPTV (Internet Protocol\nTelevision), today announces that it has secured a further significant contract\nwin, however, the timing and terms of the contract will mean that revenues for\nthe year to 31 December 2005 will fall significantly short of market\nexpectations.\n\n\nContract Win\n\nOrca has today signed a strategic contract (the 'Contract') with a franchise of\none of the world's leading media companies (the 'Franchise') to become the sole\nprovider to the Franchise of a full video-on-demand service. The Contract will\ninitially result in $3.0 million of committed revenue to Orca. Given Orca's\nstatus as the sole provider to the Franchise, the Board of Orca also believes\nthat this deal has the potential to generate substantial further revenues over\nthe coming years.\n\nIn addition, Orca has agreed to acquire a minority stake in the Franchise for an\ninvestment of $2.5million. The Board believes that this investment will provide\nOrca with an opportunity to benefit from the expected significant growth and\nfuture profitability of the Franchise. The Board also believes that having a\nstrategic relationship with a global media company has the potential to enable\nOrca to introduce an important value added partner, in the form of content, to\nfuture bids, which will strengthen Orca's position in the market.\n\nA significant proportion of Orca's overall revenues from the Contract will be\ngenerated from the provision of licenses for the use of Orca's RiGHTv IPTV\nmiddleware. In addition, as Orca is the prime contractor, revenues will also be\ngenerated from professional services and complementary 3rd party IPTV solution\nsystems.\n\nPursuant to the Company's accounting policies, and as the Contract has been\nsigned later in the year than the Board originally anticipated, the Board\nexpects to recognise only a small part of the initial revenues from the Contract\nin the current financial year.\n\nTrading Update\n\nThe Board now expects that revenues for the second half of the current year will\nbe broadly similar to those reported for the first half an...