Flagged this one up on another board thread the other day and said it was one to watch very carefully. It more or less as a momnopoly position within the growing IPTV market. It has a good management, is moving into a profit making company , now has positive cash flow and has around 13 million cash in the bank, enjoys margins of around 80% yes 80% and works with some of the biggest Tech companys on the planet.

Contracts should be announced very soon which should lead to a pushing of the price upwards. The spread is an off puter but you can normally deal within side it. Citywire have tipped this one so I will post their findings below.

DYOR

Orca could be a whale of an opportunity

By: Joanne Wallen, Associate Editor Citywire 3/02/2005



Orca Interactive is off to a good start as a separate company having spun off from Emblaze in October and with the might of HP and now IBM behind it, Orca should be a force to be reckoned with.

Shares (ORCA) in the AIM-listed company are unchanged at 126.5p today, well above the 93p flotation price and valuing the business at 43.2 million.

The Israel-based company, which states its earnings in US dollars, saw revenues for the year to December grow by 106% to $5.2 million while losses decreased to $1.8 million (953,000) from $4.9 million. The company had $24.5 million of cash on the balance sheet.

Orca offers a complete suite of applications to fixed line telecoms companies, enabling them to offer television services over their telephone networks (IPTV). The software covers everything from the user interface (every click on a remote control), to integration with a telcos back-end billing and customer interface systems.

IPTV is just starting to take off as telecoms operators upgrade their networks to IP (internet protocol) or data networks. The telcos, losing out from declining voice revenues and competition from the cable operators, are now looking to offer services such as video on demand and full broadcast television over their networks.

Orca has already announced relationships with Hewlett-Packard, Lucent, Nortel, Nokia and Siemens, and today added IBM to the list. These companies will resell its software and act as systems integrators.

Chief executive Haggai Barel told Citywire he expected to be able to announce deals with these partners very soon. At present, Orca still has to provide a considerable amount of professional services to customers, but in the longer term Barel hopes that its partners will provide all of this and Orca will revert to being a pure software players, with margins to match. Gross margins are already nearly 80%.

The companys main competition comes from Alcatel, which has its own software but is also looking to be the systems integrator for that software. This is likely to inhibit any of the major systems integrators from dealing with it, and leaves the rest of the market open for Orca.

Citywire Verdict:
It is clearly still early days, but Orca is in there ready for what looks like being an explosion in IPTV. Few network operators will have a choice. They will have to compete for customers television and internet business, or lose out in a big way.

The fact that the two major competing hardware manufacturers and systems integrators, IBM and HP, have chosen to work with Orca sounds like very compelling endorsement both of the technology, and of the fact that there are few viable competitors out there. Well worth a punt for those that like the risks inherent with IT stocks.

cheers GF.

from 'This Is Money'.............

Orca Interactive
Orca Interactive, the Israeli-based provider of services to the TV industry, saw revenues rise 106 per cent to US$5.2m (2.8m) last year and net losses were reduced to $1.8m from $4.9m in 2003. It has also signed a global co-marketing agreement with IBM under which Orca will be able to deliver its RiGHTv software on the IBM eServer.

cheers GF.

All buys today no sells, will really start to motor when we hear news of those contracts coming in.

cheers GF.

Suprised theres not more interest in this one as it as massive potential. You can buy within the spread if you try.

cheers GF.

Two massive buys just been filled.

cheers GF.

This one looks very interesting GF. Nice find! Must admit I've never heard of IPTV before though, which is a good thing I suppose. Might dip in after i've pulled out of CUC, which doesnt seem to be making any headway.

Well done chad. CUC as been lack lustre, used to be a favourite of mine. Item in shares mag a few week back cant have done it any good.

cheers GF.

GF. I may be way out here, but am I right in thinking that Orca have something to do with the interactive TV like on Sky where you press the red button?

Intriguing. Any idea what the market cap on this one is?

dclinton,if you click the blue ORCA epic on the top of the thread it will tell you all the info you require...

hope it helps..

Mega...

This is old but encouraging stuff from the telegraph:

"Orca Interactive

Pretty soon a great many of us will be getting our TV, radio, music and most other forms of home entertainment down the same internet pipe in the ground.

One company hoping to exploit the boom in "TV over the internet", or IPTV, is Orca Interactive, the Israeli firm that joined Aim in October when it demerged from Emblaze. Orca provides the software that allows all the different types of data to be transmitted through one cable into the home.

The shares have risen from 99p at the float to close last week at 123p, helped by comments from the likes of BT in the UK and KPN in the Netherlands that "triple play" providing phone calls, TV and internet in one package will become the stan‐dard for consumers in the near future. For long-term investors, Orca is definitely worth a look. Buy."

Mega - thanks. For some reason the ShareScope data is incomplete for this one.

Anyone know of any real-world websites where one can experience the technology? It all sounds great in theory, but I'd like to see how it performs in practice.

Doug

Hi Doug, have a look on their website. There maybe help there.

cheers GF.

All buys this morning, but quiet out there.

cheers GF.

GF. Whats your position on Yoomedia (YOO)?

Not a big fan Chad, dont care for the balance sheet. Seen shares mag this week and like the piece on blue sky stocks. Blockshield, stanelco and Zytronic, look the best of the picks. DATs in a very competitive market.

Quiet monday morning for me.

cheers GF.

same here GF.

Can't find anything on the Orca website that directs me to examples of the technology in action, unfortunately.

Still, I've gone in for a few of these. The deal with HP is what impresses me most.

Doug

Off hand Doug cant think of anywhere else unless one of its customers have it on their web site.

Im sure news flow will push these up as the year goes on.

cheers GF.

Indeed. All round I think this looks like another one of your top picks with huge potential as the deals roll in. It'd just be nice to be able to see it in action. I did check out a couple of their customer sites but couldn't find any tv to watch.

Doug

More buyers have come in this afternoon.

cheers GF.