We were somewhat skeptical back in August when iSuppli told the world that set tops were selling like the proverbial hot cakes, and in September’s IBC our contacts at Amino told us that things had been extremely tough in the first half of the year.
While companies like iSuppli may have been right predicting a rise in set tops overall of 4% and that IPTV and cable boxes in particular have been growing at 50% per annum, it is hard to reconcile that with the losses that Amino, an IPTV specialist, is warning of this week.
It transpires that the shape of set top sales in IPTV was a panic buying freeze in the first half of the year, followed by huge new orders in the second half. The problem with this is that when ten operators call you in September and each one requests 250,000 set tops to be delivered in time for the Christmas season, despite having not answered their phones for 6 months, it makes finding components tough, and on time deliveries impossible.
This is pretty much what Amino has said and this fact suggests that those predictions of an up 2009, will miss target, and many of the shipments fall over into the first half of 2010. Cable operators have perhaps had more predictable needs, shifting, as they are to HD DVRs right now (although Motorola’s figures also give us a clue to that ‘ see separate article).
Amino announced the trading update ahead of the close of its financial year on 30 November, blaming order slippage and component shortages for what will be a loss, but said that it had taken more orders in the last quarter than at any time during the company’s existence, which will give rise to a healthy backlog in 2010. The company still has £8 million in the bank, about a third of its annual revenues.
The company’s clients have been transitioning from MPEG2 products to MPEG4 during the past year and while this may have driven orders, it has led to carrying two products lines and two sets of supports costs. Now this transition is over, the company says, its costs will fall by around £2 million compared to the first half of the year.
Amino also said that it had new orders in the quarter from Tele2 in Europe and Pioneer in North America and says it has an improving sales performance in the important North American market.
Commenting on the announcement, Keith Todd, Amino Non-Executive Chairman, said, ‘2009 has been a disappointing year financially, against a backdrop of turbulent and difficult trading conditions for our customers. However, we exit the year in better shape than at the half year as a leaner and more focused company that is better positioned to capitalize on the transition to IP-connected devices in the home. Our strong order intake proves the continuing attractiveness of our products and we are particularly encouraged by the progress we have made in transitioning from MPEG-2 to higher specification MPEG-4 and HD product lines. We are confident as a Board that we have in place a solid platform for growth in 2010 and beyond.’
The company also made a new Board appointment in the form of Michael Bennett of Azini Capital, which holds around 13.6% of Amino’s shares.
Earlier this month Amino came out with a new IPTV set top based on the new Intel CE4100/3100 chip product line, part of the Intel Atom family.