Small cap video games developer....swinging into profit....outlook good...cash in bank....starting to move....welcome anyone's comments and thoughts on this..

Highlights from Interims RNS
"Turnover for the six months ended 30 September 2003 was 1,062,000 compared with 633,000 in the same period last year. The profit (both before and after tax) for the half year was 23,000 compared with a loss of 556,000 in the same period last year

Visit Bits corporation website:
http://www.bitsstudios.com/default.asp

game_boy,

took a quick look at BIT this morning as I was considering them, but I couldn't see a huge list of games in develpment so decided not to gamble. But i would also like to get others views on the potential.

skids

What's really interesting is that only 15.2% of stock is in free circulation....this baby will fly !!!

Major shareholders:
Name..................................Amount...................% Holding
I Robot Holdings Ltd..................13,356,000....................32.19
JP Morgan..............................8,000,000....................19.28
N Y Noms Ltd...........................6,077,351....................14.65
Trustees of Mikto Pension..............2,613,750.....................6.30
Chargegovern Ltd.......................1,989,601.....................4.80
Clydesdale Bank........................1,550,000.....................3.74
Directors
Fouad Mir Katan........................1,060,000.....................2.555
Julian Isaac Levy........................568,000.....................1.369
Maurice Robert Hakim ......................8,851.....................0.021

Total.................................35,223,553.....................84.8% (Closely held!)

Took a bite of these today game_boy. I agree with you that they will fly again tomorrow.

From MoneyAM Leaders & Laggards:

Notable LEADERS today included Bits Corp which rose 33% to 5.5p after saying today it returned to profit in the six months to September 2003 with a pre-tax figure of 23,000, up from a loss of 556,000 a year earlier. The developer of video games software for major console platforms said the results reflect the continuing progress made by the group.

Bits Corp rose 13.6% to 6.25p. Yesterday, 25 November, it said it returned to profit in the six months to September 2003 with a pre-tax figure of 23,000, up from a loss of 556,000 a year earlier. The developer of video games software for major console platforms said the results reflect the continuing progress made by the group.

Posted this on the SEG thread, thought it may be of interest.

Hi Guys,

Well at last SCi are getting noticed amd all my research is paying off, haven't sold a single share in my core holding but have traded it up to add to the core holding. Its all rather exciting at the moment and there is lots more to come and the SP should more than double again on a twelve month view.

Whilst you have mentioned EID they are a terribly run company but am currently long for a possible takeover/mbo, may see a quid if were lucky but don't bank on it.

Now whilst everyone has been getting excited about SEG I have also been building up quite a holding in BIT. The reason is simple, SCi's buisness model works and at last the city has woken up to this fact. What the city has missed, whilst it works for SCi it also works for their developers. Constantine is SCi's next big release and BIT will benifit by having royalties guranteed as soon as the game is shipped to market. The amount obviously depends on the continued sales of the game but BIT will recieve approx 2 for every game sold over 300k units. With SCi's buisness model it quite likely the initial ship will be a minimum of 500k i.e. 400k straight to BIT bottom line, however Enter the Matrix has shipped in excess of 5m units so the scope for additional revenue is high. SCi have not capped BIT royalty, so if the game ships 1m that would be 1.4m to BIT, 1.5m would be 2.4m etc. etc.

If you take a look at BIT market cap, you may realise where I'm coming from.

Conclusion
The games development business model is one that is made appealing not by the publisher advances that comprise most developers' turnover nor the modest margin that some developers make on them but by the upside potential that comes from best-selling releases. Argonaut, who received a 5.3m net royalty cheque from a single SKU in February 2002, is evidence of this potential. The quality of product and the volume of this product flow will determine the extent to which this potential can be realised. Bits, which has been around for nearly as long as Argonaut, has proven itself a capable handheld games developer but has yet to establish itself as a premium quality console games developer. With even the larger and more commercially successful developers finding publishing deals increasingly difficult to conclude expeditiously, smaller developers are finding life particularly tough as evidenced by the cancellation of a key Bits product and the resultant profits warning. The European games development market has moved from a period of considerable proliferation during the late 90s to one of rapid consolidation with developers going under or being bought at an unprecedented rate. Bits has won a reprieve with the signing of its Constantine game to SCi but will still need to secure more publishing contracts with greater regularity if it is to survive let alone prosper.

Could be a big UP week for BIT next week.

could some one explaine to me what " holding in company " means I always see this as news associated with shares

nice bit of news!! lol,
10p?

another about to explode

Issue of New Shares

RNS Number:5864U
Bits Corp PLC
23 November 2005

Bits Corp plc (the "Company")



Issue of New Shares



24 November 2005



Pursuant to the facility agreement referred to in our announcement dated 22
November 2005, the company has issued 200,000 ordinary shares of 1p each in the
Company, application has been made for these new ordinary shares ("New Shares")
to be admitted to the Alternative Investment market ("AIM").



Admission of the New Shares to AIM is expected to become effective at 8.00 am on
Thursday 24 November 2005.

Bits Corp PLC
08 December 2005

Bits Corp plc (the 'Company')



The Directors note today's press speculation and the rise in the Company's share
price.



As stated in the Annual Report, other ventures are being actively pursued
including the field of online gambling. In this regard the Company is in
discussions with a number of parties with a view to establishing an online
gambling presence. These discussions are ongoing and any announcement will only
be made when appropriate.


This information is provided by RNS
The company news service from the London Stock Exchange

http://business.guardian.co.uk/story/0,16781,1663201,00.html

Computer games developer Bits Corp gained 3p, or 20%, to 17.62p on confirmation of contract talks with several on-line gaming companies. Traders believe there are six companies bidding for the right to use Bits technology and a revenue sharing deal with one of them could justify a share price nearer 30p.

There could be announcements this week/next which will surpass the Guardians expectations ;)

If they get the online gaming, will this share shoot like PARTYGAMING ?

Ok So now we know they have 2 deals. One is with microgaming who are a massive outfit responsible for William Hill, Labbrokes etc I believe. Other deals are possible and we have a Jan placing which will most likely see funds come on board. I see this as a potential very big gainer in 2006.

FUN mkt cap is 140 million
BIT mkt cap is 8 million

I know which one I am in and which one I think will make most money as a company and it ain't FUN.

Bouncing nicely now

And someone has just exercised some of their options

I guess you lot aren't interested in these then?

Up again today with a couple of mm buys in there.

I think this has a lot further to go.

ANother 90k of options has just been taken up :)