28th Aug 2014 09:23
LONDON (Alliance News) - PeerTV PLC Thursday said its Digitek SMT Assemblies unit has ordered a new surface mount technology production line that it expects to significantly increase production and attract new customers, but the parent company also said it hasn't yet finalised a distributor deal for its TV over internet product in the US and Ireland.
In a statement, the company said Digitek will buy the new production line for about GBP320,000, which it will pay over 35 months. It hopes to have the line operational in the fourth quarter of 2014, and is confident it will allow Digitek to significantly increase production and secure new customers in sectors including medical equipment and military.
"Its features include advanced technologies, which allow for component placing speeds that are faster than Digitek's existing lines and a shorter set up time. As such, we expect that the successful implementation of the new SMT production line will reduce Digitek's manpower costs," the company added in a statement.
"Importantly, through increased efficiency and expected cost reductions, we believe that Digitek may be able to increase its price competitiveness and capture a larger market share".
However, PeerTV also said it hasn't yet signed the final agreement appointing a distributor for the US and Irish markets for its TV over internet product .
"Both sides have agreed to extend the original 90 day deadline. The discussions between the parties are progressing. The directors now expect the final agreement to be signed during the fourth quarter of 2014, although this cannot be guaranteed," it said in a statement.
PeerTV said on May 29 that an unnamed US-based company had agreed to buy its set top box to supply its video, audio and other media content network and distribute PeerTV products in North America and Ireland. At that time, it said the US company plans to roll out the services in several countries over the next two years and PeerTV would become its exclusive set top box supplier.
In turn, PeerTV would grant the US company an exclusive distributorship in North America and Ireland, subject to the achievement of sales of at least USD3 million over the first three years.
PeerTV shares were up 4.4% at 0.287 pence Thursday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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