Trading Update
March 18 2003 - 3:15AM
UK Regulatory
RNS Number:8524I
ID Data PLC
18 March 2003
Press Release 18 March 2003
ID Data plc ("ID Data" or the "Company")
Trading Update
In the Company's interim results released on 11th November 2002 the directors'
were cautious in their outlook and highlighted that all ID Data's major publicly
quoted competitors had reported lower sales against their comparative periods.
The directors also stated that signs of a general upturn were not presently
visible.
The Board confirms today that the overall industry situation remains
challenging, consequently, whilst ID Data's revenues for the current year will,
in contrast to industry trends, show growth, it will be less than current market
estimates. However, operational losses for the year to 31st March 2003 will have
been reduced by more than a half when compared to the previous year, and will
broadly be in line with the current market expectations. This result reflects
planned cost reductions and margin improvements previously reported to the
market.
The markets for fixed line prepaid telephone cards and GSM cards are
particularly difficult with continuing price, and therefore margin, erosion.
Telecommunications companies are also tending to defer new projects and this has
impacted on projected sales for OriginJ, our software product that provides full
java on a smart card. Whilst a very encouraging response has been received from
customers evaluating the product, the first orders are not now anticipated until
mid 2003 with a significant contribution forecast for the second half of 2003/4.
The initial revenues for Chipport are also expected to come through in the first
half of 2003/4.
Whilst the continuing market conditions and the impact of the delayed revenues
described above means there is uncertainty as to the rate of revenue growth for
the year to 31 March 2004, contributions from OriginJ, Chipport and near full
year benefits from a lower cost manufacturing base, the board believes there
should be further progress towards profitability.
The delay in reaching profitability will, however, create a need for the company
to secure additional funding within the short term. Discussions have started
with a number of potential investors with a view to raising an amount that the
directors anticipate will be sufficient to fund the business until it becomes
cash generative.
- Ends -
For further information, please contact:
ID Data plc
Peter Cox, Chief Executive Tel: +44 (0) 1536 207 000
Martin Coles, Finance Director
enquiries@id-data.co.uk www.id-data.co.uk
Media enquiries:
Bankside
Peter Curtain / Heather Salmond Tel: +44 (0) 20 7444 4140
heather.salmond@bankside.com www.bankside.com
Notes to Editors:
ID Data plc
ID Data plc ("ID Data") is the world's seventh-largest supplier of
secure-transaction systems and smart-card services to the international
telephony, banking, retail, and secure-access sectors. The Company's strategy,
to move from commodity products to value-added services and solutions, has
created a solid platform on which to build further growth. The Company's
clients include Vodafone, Nectar, Tesco, the Automobile Association, Exxon Mobil
and, in Poland, the Premium Club loyalty card scheme. ID Data has formed
agreements with major global corporations to facilitate rapid market development
including partnerships with Toshiba and Toppan. The Company has delivered in
excess of 10 million chip cards to the banking market in the UK. The Company
was founded in 1988 and was listed on AIM in October 2000.
www.id-data.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
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