Tadpole Technology plc
June 29, 2004

Tadpole Technology plc
Interim Results for the period October 1, 2003 - March 31, 2004

Highlights

* Turnover increased by 39% to #2.6m, operating loss reduced by 30% to
#1.8m compared with H1 2003

* Endeavors begins to come on-stream, wins on-demand streaming software
contracts for its AppExpress enterprise-focused technology. Customers
now include Autodesk, MCI, Microsoft and Wyse Technology. EDS
appointed AppExpress master reseller to its world-wide customer base

* Cartesia delivers small profit; extends order book from new ESRI-based
product lines; customer wins include US municipalities and JEA electic
utility

* Outlook - the Board is pleased with the continued progress of the
subsidiaries in implementing the 3-year business plans defined in
2003. It expects further improvements in the Group's trading
performance in 2004

Enquiries

Keith Bigsby, CFO, Tadpole Technology plc - 0207 987 4888 (until 16.30)
Mike Brennan, Evolution Beeson Gregory - Tel 0207 488 4040
Hugh Paterson, Patcom Media - Tel 0207 987 4888


CHAIRMAN'S STATEMENT

Financial Results

Turnover from continuing operations in the first half of 2004 increased by 39%
compared with the same period last year, gross margins rose from 40% to 59% and
operating expenses were cut from #3.0 million to #2.6 million. A consequent
reduction in operating losses, from #2.6 million to #1.8 million, was achieved.

Endeavors

Good progress has been achieved in building customer and partner relationships.
On 5 January, we announced a world-wide master reseller agreement with EDS. This
was followed by an announcement on 19 January that a major US telecommunications
company had chosen our AppExpress on-demand application streaming technology for
the deployment of Windows-based programs to the telco's customer base and
throughout its own enterprise. Earlier this month, the name of the telco was
revealed when MCI announced its new service offering which embeds our
technology.

On 17 June, we announced that Microsoft had selected AppExpress to stream trial
versions of consumer software products to customers. The initial value of the
contract is based upon the number of downloads by potential Microsoft customers
up to an aggregate amount of $100,000.

We also continue to develop our relationship with Autodesk, expanding the
applications using our trialware solution and enlarging the site to include
Autodesk's European customers.

With the growing success of our sales activities, we expect to start generating
further revenues and improved operating results by the end of the current fiscal
year.

Cartesia

Turnover grew by 41% generating an operating profit of #75k compared with a loss
of #320k in the same period last year.

The strategic decision to invest in developing products based on ESRI technology
continues to generate rewards. Through direct sales activity, partnership with
ESRI regional offices in the USA and business relationships with other ESRI
partners and distributors, Cartesia has supplied its Go!Sync data
synchronization products to clients in its target market sectors. Of particular
note is the recent $500k contract win with electricity utility JEA in the USA.
We are encouraged by the accelerating interest in our ESRI-focused technology
and it is planned to continue investing in the Go!Sync product set, an example
being the addition of data synchronisation to ESRI's ArcPad pocket PC platform.

Cartesia anticipates growing demand for its data synchronisation and management
technology and is positioned to exploit these opportunities through the
remainder of 2004 and into 2005. We expect a significant increase in the
business unit's revenues and operating results during the second half of this
financial year compared with the first half.

Outlook

The Board is pleased with the continued progress of the subsidiaries in
implementing the 3-year business plans defined in 2003. It expects further
improvements in the Group's trading performance in 2004.

David Lee
Chairman
29 June 2004


FINANCIAL REVIEW

Results semm fine to me, but obviously not enough for the few remaining short termers, 59% profit margins are bloody great once they get the business.

Cheers,

Paleface

and yet the price is dropping what the hell is going on

Traders getting out. They sell on news and buy on rumour.
Maybe they havent heard the latest rumour yet!!
Rumoured to be announced this week!!


M

Only a TAD enthusiast could try to bolster our spirits by announcing that there is a rumour that a rumour will be announced this week. Sorry M, but it did make me smile. I'm still a holder.

so whats this new rumour then? go on make me laugh

The rumour is there is going to be a rumour!

The rumour is:

I am going to have a lie in tomorrow morning.

M

M - :-)

I`m with paleface on this. results are good enough for me to hold, and probably top up, as year end results will show dramatic improvement as second half is historically good for TAD.I believe it will show a positive EPS and value TAD at 30p plus.
this is my certain belief in opposition to previous wishful thinking.
best of luck to all

What an abysmal set of results

Sorry, but this business will continue to make losses for the next few years, until their cash has been burned or they cannot raise any further funding.

A market cap of 45M+ is totally ridiculous.

The $100K (an amount not exceeding) from Microsoft might just about cover for the costs of one software engineer for one year.

This business is pie in the sky, unlikely to ever succeed and obviously being managed by people who have a vested interest to keep the thing afloat, as long as possible, to draw out large salaries, at the expense of very gullible shareholders, who keep pumping more and more money in....

I expect to see this trading south again in the near term.

Verdict: Near term reduce, SELL

Couldn't agree more snappy. In freefall as "investors" (LOL)come to terms with the grim reality that they will not live long enough to see TAD in profit......

It's a shame Tadpole never really learn to manage peoples expectations, i still think they have a great product, but have attracted too many people who remember the tech bubble of yore, it's gone and anybody in business must know it takes at least 4 years before you even get out of debt...if you take endevours as the new business then that means a little time yet till break even, so no fast bucks till the next rumour.

Paleface

Looks to me that a lot of the smaller day traders get out
and in come the bigger boys picking up all stock at very cheap prices.

On the rumour front, I am still hearing about nice contracts not too far away!

Good luck holders

M

http://global.mci.com/news/news2.xml?newsid=11090&mode=long〈=en&width=530&langlinks=off

"MCI will infuse its new capabilities into building next-generation offerings that leverage the company's expansive data center and global IP network footprint. Examples of this include MCI's fully-managed On-Demand Application Service, which was launched earlier this month. Also in development for release later this year are disk-to-disk back-up and restore services, utility storage offerings and a bi-directional ticketing service."

It wont be long before this pays off.

M

Moneylender.

I agree with you regarding TAD. They have only very recently won the contracts from MCI, MS etc. So its going to take a few months before we see some significant revenue as MCI etc need time internally to set up their sales and generate a customer base.

I am disappointed though, that the market is so muted towards Tadpole, as its RNS showed great potential. Obviously the market wants results, not speculation.

Not worth getting up early for quite a while yet, not on behalf of TAD anyway!

H

blah blah blah blah tad tad tad end of the day the dumbass thing is down , then people saying oh but there is a rumour i heard.. SHUT IT the dam thing is sinking and im in it to . WHO WANTS MY SHIRT??

Here's an excellent post that really says it all. Pasted from Ample iii. Hopefully the author, Kenneth Thomson won't mind:-

So the interims have been released and it looks like they failed to live up to a number of peoples high expectations.
Some thought needs to be given as to whether that is Tadpole's fault for not delivering or the individuals for aiming too high.

Time will tell.

The results took us up to the end of March. At that stage expecting a susbstantial contribution from Endeavors was not only unrealistic, but ludicrous.

Our work with Autodesk was just getting underway and we are more likely to see the fruits of that by the end of September/next March, rather than last March. I have my own guess at how many server at $**K per server it will take to manage their trialware distribution for the product range. It will make a significant difference in the next full year and hopefully add even more in the following year.

Like many here, I feel our recent 100k deal with MS is based on paying so much per download and that is an initial payment to be followed by more. In fact putting my cards on the table I truly believe that, just like Autodesk, once MS starting using AppX they will realise its potential and start to use it in othe rares.

EDS are one of the biggest seller of IT solutions in the world and they are going to reselll AppX. Any number of successes are possible..............and none is a possibility..........but they have tested the software and agreed to resell it for a reason.

Capella and MCI have a vision of re-positioning themseleves as a hugely profitable seller of on demand sevices. They have chosen AppX as their delivery system of choice internally and externally. Just how big could the revenue streams from that source prove to be. Other telcos, hardware and software firms share the same vision.

On the Endtech Website I believe you will find an indication that Endeavors is a participant in IBMs Partnerworld to help develop on-demand applications, a project they are investing a billion dollars on developing this year. We also have an Intel insight into our work with Autodesk, suggesting they are well aware of AppX capabilities.


I also take comfort in the fact that all these are links in the public realm. My guess is there will be more companies interested in AppX than I currently am aware of.

To be honest I was disappointed that Cartesia didnt manage to make a larger positive contribution to the bottom line in the H1. But the interims do suggest that the second half will be better for Cartesia.

There can be no doubt that Endeavors will make a contribution to turnover in the second half and in my opinion next year the sales of AppX will start to increase rapidly.

In the meantime Tadpole had 3.8 million pounds in the bank at the end of March and so the need for a cash call does not exist at this time and perhaps never will.

Time will tell............ and I will hold on to my holding until at least September /October and if I dont like what I have seen by then, believe me when I say I will sell. However I honestly believe it wont come to that. To sell out now and let other investors pick up shares on the cheap would haunt me in the future.

You need to think hard and make your own mind up, make your own decision and live with it. Dont let the disillusioned or rampers make your mind up for you. Blaming the market makers, the Board, the bb, Patcom ,itkb, a mistake in the rns or the collapse of civilisation as we know it are not options. We do the buying or selling. Think it out for yourself and stick with your decison because there are few you can trust when it comes to money and integrity.

I am sticking with it and holding for now whether the shareprice takes a heavy beating or not.

DYOR

Ken Thompson

"It's a shame Tadpole never really learn to manage peoples expectations"..

its not the companies fault. after all they ARE NOT the ones starting rumours of rumours ;-)

Morning all - 3.7m in the bank

looks like the MCI technology payment wasn;t received until H2

Highride - 30 Jun'04 - 10:59 - 626 of 627 (Filtered)



rjs - 30 Jun'04 - 11:07 - 627 of 627 (Filtered)