UbiNetics, one of the UK's leading developers and manufacturers of next generation wireless telecoms technology and equipment, and a global leader in 3G test-mobile and test-cell equipment, reports its results for the year ended 31 December 2000.
Revenue for the year increased by over six-fold to £15.2m from £2.5m in 1999. Gross profit was £7.3m, or 48% of sales, and the loss before tax of £14.3m was in line with expectations. The year-end cash balance stood at £46.7m, largely as a result of the success of the private placement. The results are in line with forecasts, set at the time of the institutional fundraising in November 2000.
During the year the company raised £50m through a private placement, allowing the company to invest strategically in research and development and to build sales and support functions. Since completing the fundraising round, UbiNetics has made significant progress in all areas of activity.
Shipment of the company's first GSM industrial product commenced in August 2000 to Symbol Technologies. The GSM consumer products were launched in February 2001 and have generated considerable customer interest. Orders are now gathering pace and deliveries are commencing for both the Palm Clip-On device and the consumer PC card. The company is in discussions with a number of retailers and network operators regarding the bundling of these products in order to provide consumers with a one-stop wireless solution for their Personal Digital Assistant (PDA) or laptop.
A memorandum of understanding (MOU) has also been signed with Palm that will allow UbiNetics to bundle Palm content and access services onto the company's Clip-On product. This MOU will also give UbiNetics access to Palm's EMEA distribution network.
A number of agreements were signed with major manufacturers, and technical partnerships were significantly strengthened during the year. These included agreements with Texas Instruments and Condat for the supply of the core GPRS hardware and software technology. Partnerships were signed with Solectron, based in France, and Wongs from Hong Kong for 2G products and with AB Electronics (Wales) for the manufacture of 3G products. Additionally, UbiNetics has formed a European alliance with AvantGo, specialists in delivering enterprise content to mobile terminals, to provide AvantGo users with business news and services directly to their PDAs.
UbiNetics has continued its commitment to research and development activities in order to secure the growth of the Group. 45 patents were filed last year and a second research and development facility has been opened in Swindon providing extra office and laboratory space. The Group has also opened a research and development facility in Bangalore, India in 2001, which is expected to grow to a headcount of 40-60 by the end of 2001.
The Group continues to retain its leading position in 3G test and measurement equipment and no major competition has yet appeared in the marketplace. A number of new testing products are being developed and sales of test mobile equipment remain healthy.
Ali Pourtaheri, CEO of UbiNetics, said: "UbiNetics continues to make considerable progress towards its goal of becoming a leading developer and supplier of next generation wireless products in the mobile data market. The current year should see UbiNetics release more GSM/GPRS products to the markets and commence sales of additional 3G test and measurement products where we will benefit from being early to market. As a result of positive global growth through partnerships, research and development, an aggressive recruitment policy and commercially viable products, UbiNetics enters 2001 at the forefront of wireless technology."
Jon Moynihan, Chairman of UbiNetics, added: "There will always be demand for companies at the forefront of industries with sustainable product lines and established distribution channels. UbiNetics is fortunate in serving both the industry itself and consumers with niche product groupings at various stages of development from concept to 'on-shelf'. UbiNetics continues to grow and excite interest from customers, industry partners and investors. We have innovative products with huge commercial impact and potential, and we see this underpinning further growth and success in the future, building on these results achieved thus far."
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