Citel plc Interim Results for the 6 Months Ended 30 September 2007

 

Citel designs, develops and markets a range of VoIP solutions for the business telephony market that enable enterprises to migrate their telephone systems from the traditional voice network to an IP-based data network, without replacing existing handsets and wiring infrastructure.

Sales

• Continued focus on direct sales to enterprise and through Tier 2/3 Carriers and ISPs
• Secured supply agreements and stocking orders with four Tier 2/3 Carriers: Cable and Wireless Jamaica, Centennial, BroadConnect and McLeod. These Carriers are aggressively rolling out hosted VoIP and winning customer sales
• Recent customer wins include Sam Houston State University, and Citel is currently at advanced stage with three other major universities
• Numerous test projects with Verizon enterprise customers.  Certification testing with Verizon complete and awaiting final certification report
• Foreign distributors signed in Netherlands, Mexico and Guatemala

Financial Performance

• Turnover of £1.33 million, an increase of 15.1% over the prior year period. In U.S. dollars, the Company’s primary operating currency, the increase was 23.4%
• Sales of the flagship Portico TVA product grew five fold over the prior year period
• Loss for the period was £2.0m compared with a loss of £2.5 million in the prior year period
• Management action taken to materially reduce expense base and cash burn, saving approximately £0.9m annually
• Under the current operating plan management believes the current cash balance of £1.2 million at 30 September 2007 together with available credit facilities should enable the Company to achieve cash break-even

Product and Technology Enhancements

• Citel’s Feature Pack 3 adds Siemens interoperability and robust productivity-enhancing tools
• Portico TVA is now compatible with key Avaya IP telephony solutions.  This allows enterprises to benefit from Avaya’s next generation SIP IP platform, while using existing infrastructure
• Completed development of new platform that combines both Extender and Portico TVA products which should enable manufacturing efficiencies
• Accepted into the Cisco Technology Developer Program.  Additionally working to complete certification with other Enterprise IP PBX manufacturers

Commenting on the interim results Jose S David, Interim CEO of Citel, said:
“Our strategy to focus on direct selling and Tier 2/3 carriers is driving more immediate revenues. Progress has been encouraging with this shift from earlier exclusive focus on Tier l Carrier distribution.  The market for VoIP migration remains large and we continue to be the only provider of this migratory VoIP solution.  Our pipeline of opportunities continues to grow and we believe our aggressive sales strategy will drive the business forward.  We remain confident in the strength of Citel’s market position.”

Contact Details:

Citel Plc
Jose David, CEO +1 206 965 8925
Panmure Gordon (UK) Limited
Dominic Morley +44 (0)20 7459 3600
Giles Stewart
Andrew Collins

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Copyright 2007, Citel plc. All Rights Reserved.

Citel and The VoIP Migration Company are trademarks of Citel Technologies, Inc. All other product and company names mentioned herein may be trademarks of their respective owners.