21st Sep 2006 07:01
DDD Group PLC21 September 2006 21 September 2006 DDD GROUP PLC UPDATE ON CURRENT TRADING DDD Group plc ("DDD" or the "Company"), the 3D software and content company,announces that due to delays in securing certain commercial agreements beyondthe direct control of the company, the Board currently anticipates that revenuesfor 2006 will be below expectations. Despite the delays in the timing of theseagreements, the board of directors is confident in the commercial progress beingachieved in key markets, and with the company's increasing role in the emergingmarkets for 3D software and content. Mobile market progress The company's mobile telephone licensee has commenced the redesign of their 3Dhandset with an improved 3D display, as previously reported, however it nowappears likely that the launch of the revised handset will be delayed until2007, thereby postponing the royalty and content revenues that the companyexpects to generate from this product. In line with the terms of the existinglicense agreement, the company expects the licensee will shortly renew theirexclusive rights to DDD's mobile technology for use in handsets sold in thelicensee's domestic market. The company also anticipates securing a furtherminor development project with the licensee in connection with development workrequired to support the redesigned handset. The company has made good progress in addressing other handset manufacturers andmobile telephone network operators with demonstrations of the prototype 3Dhandset that was jointly developed with Ocuity in May this year. Consequently,the company is in negotiations with a European division of a global mobiletelephone network operator with the objective of being retained to assist in thedevelopment of the carrier's technology and content strategy for a 3D handset.The initial feasibility phase of this project is expected to be undertaken priorto the year-end with the prospect of additional technology and content-basedagreements in 2007, subject to the carrier's approval and execution of a 3Dhandset project plan. The company has also recently signed a heads of agreement to supply 3D mobilecontent to a further European mobile carrier for a trial project. The mobilecontent will comprise 3D photos animations and video drawn from DDD's own mobilelibrary and also from converted content through DDD's partnership with Jamster!International Sarl. The project is planned for the fourth quarter of 2006 andthe company will provide further details as permitted following the carrier'sformal announcement of the project. Following the successful development of the DDD Mobile solution for handsetsthat use the Microsoft and Qualcomm platforms, DDD's technical team has nowcommenced development of a version of DDD Mobile that is compatible with theSymbian OSTM platform used in advanced smartphones sold by manufacturersincluding Nokia, Motorola, Sony Ericsson and other major handset makers.Through partnerships with leading 3D display manufacturers, the company plans tosoon be in a position to demonstrate the third generation of 3D mobile displaysthat offer wider viewing angles and high-resolution 2D and 3D images. Television market update Following the successful conclusion of the TriDef(R) Vision+ developmentproject, the company has shipped approximately two dozen Vision+ set top boxesto Arisawa Manufacturing for evaluation by prospective licensees in Asia. In recognition of the move towards high definition consumer displays, thecompany has released a new software product called TriDef Media Player whichallows for the presentation of standard definition and high definition stereo 3Dcontent as well as the real time 3D conversion of high definition 2D content.The release of high definition image processing capabilities is intended tocoincide with the delivery of prototype high definition 3D displays usingArisawa Manufacturing's 3D optical materials. Digital Cinema market update In July, the company undertook the first 3D conversion trial of a digital cinemafilm in conjunction with a post-production partner and a major Hollywood studio. The trial demonstrated that the company's 3D conversion solution achieves anacceptable, high quality 3D result on the larger digital cinema screens. Following the conclusion of the test, the company is involved in two separatediscussions relating to the commercialisation of the 3D conversion solution fordigital cinema applications. The first involves the postproduction partner withwhom the initial test was undertaken. The partner is now soliciting furthertest projects with well known studios and film directors with whom they have preexisting relationships. The goal is to demonstrate how first run and existinglibrary movies can be converted to 3D for release in the emerging 3D digitalcinema market. The second project involves a California-based, public corporation that iscurrently involved in the supply of products in the 3D digital cinema market.This corporation has developed non-3D technologies that may yield suitableimprovements in automating the 3D conversion process when integrated with DDD'sexisting offline conversion solution. The goal of this project is to jointlydevelop an improved offline 3D conversion solution, specifically targeted at thedemands of digital cinema, to provide an affordable, efficient conversionsolution for studios and filmmakers. Presently, both companies are identifyingthe technical requirements of the project with the expectation that a formaldevelopment project will be initiated for which DDD will receive developmentfees as specified milestones are achieved. Financial outlook The company's cash position of £286,000 on 31 December 2005 was supplemented bythe February 2006 equity placement that raised £1,182,000, after expenses.Revenue for the six months ended 30 June 2006 was £146,000 and the cash positionat 30 June 2006 was £625,000. The company will publish its interim results for the period to 30 June 2006prior to the end of this month. Enquiries: DDD Group plc Chris Yewdall, President and Chief Executive OfficerTel: (+1) 310 566-3340E-mail: [email protected] Mark McGowan, Chief Financial Officer Bell Pottinger Corporate & Financial Nick LambertTel: (+44) 20 7861-3232 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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