Interim Results, June 2003

Posted: 30/09/2003

Interim Results for the six months ended 30th June 2003

Results

In the six months to 30th June 2003 the company had sales of £15,333 (2002: £5,350) and incurred a loss of £233,919 (2002: £147,906). The increased loss was mainly due to planned increases in development and marketing resources and the establishment of our compression bureau. Cash balances remain strong at £2.4 million.

The Market Place

During the first six months of the year the technology marketplace showed signs of renewed interest in innovative developments at both consumer and business levels. Whilst the vast majority of Internet users continue to depend upon modems, broadband is now increasing its penetration and popularity. Our data rate-sensing product, which automatically detects each receivers connection speed, allows us to service all internet viewers appropriately. Mobile devices continue to grow in volume and variety, particularly Symbian mobile phones.

Progress

Our product development has continued to make excellent progress producing a range of attractive shippable products. We have run successful beta tests on our compression software and can now deliver compressors to volume customers.

Development of a superior suite of tools for use by video production companies is now in progress. Used with our compression technology, this will offer customers a valuable tool which speeds up and eases the video post production process.

Our progress in the business services sector is accelerating with customers such as Cantos, Misys and others using our technology increasingly.

We are increasingly successful at attracting partners. Recent partners, Siteseer in Japan and Siteseer UK, are reporting good progress.

Live Video Streaming

The highlight of our recent product innovations is the announcement and demonstration of our live product, FORlive. This can provide live transmission of video over the Internet via a standard web server. It appears in a web page, viewed with a standard web browser and needs no plug-ins. This product provides a major enhancement to our existing product range.

The recent launch of FORlive at the international media exhibition, IBC in Amsterdam, created huge interest from a wide range of potential customers. In the days following this exhibition the company had a sustained surge in the number of visits to our website (www.forbidden.co.uk) and a high demand for our shares. The opportunities offered by FORlive for smaller broadcasters was recognised as was its use for previewing archive material. Both have produced multiple expressions of serious interest.

Outlook

“We believe that the increasing acceptance of our innovative products augurs well for significant growth over the years ahead.”

“Our business development team is achieving increasing success in unlocking the doors that can lead to participation in a huge and varied market-place of Internet based video for business and pleasure applications.”

Victor Steel
Chairman