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.

No not really Chad just a case of being patient, the news flow will come through rest assured.

cheers GF.

Orca has already announced relationships with Hewlett-Packard, Lucent, Nortel, Nokia and Siemens, and 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%.

cheers GF.

Looks like everyone has forgotten this one.

cheers GF.

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.

Dont sell off, the markets getting a shock taste of reality. There will be a bounce in the US.

cheers GF.

Just out from Killik brokers....................

Sentiment in the near term appears to have turned with active profit taking in the second liners after a terrific run to the start of the year. How far things will come back is the obvious key question but so far, it does not appear as if too much stock is coming out and this feels more like a healthy correction rather than something more significant.

cheers GF.

Same all round GF. Nearly all my stocks have slumped past week or so. No worries tho.

hi GF , like you i have a strong feeling this company has got serious prospects this year and beyond. The IPTV WORLD FORUM takes place on the 8+9th March 2005 in London which ORCA are attending they then move onto another forum in Germany from the 10-16th March.Upped my stake today i feel so bullish.

Cheers Bowman

Thanks bowman for that info I had no idea. Should be an opportunity for the company to forge links and perhaphs more business.

cheers GF.

For the first time today nearly my entire portfolio was red, with no blue at all.

Not worried, though. All prety minor falls and nothing compared to the gains I've had in recent weeks. Amusing, though.

Doug

Same here Doug, just dig in and things will get better. This is only a market corection made worse by the MMs who were getting greedy but having said that it looks for once investors are getting wise to their actions, the sell volumes today were very low indeed on most stock.

cheers GF. Dow and Naz up aswell.

gets a positive mention in Shares mag today.

Any clue to what it says Roro.

cheers GF.

Just mentions ORCA as a play for the internet broadcasting sector, along with Amino. Also says the are 'highly rated but should go higher still'. Not sure what this means tho.

Well did take off and then the market makers did shake the tree. I am now just getting into this one after the recent retraction to 140p. Does anyone have articles out there relating to IPTV?

1 loner 100k buy today.

tipped in the Sunday Times article on hot AIM stocks.
The Israeli firm is at the forefront of putting television on the internet. It provides the software that allows data to be transmitted into the home. The shares have risen from 99p in October when the business floated to close last week at 139p. Analysts asay its shares may stop for a breather but should be a good long term play.

Thanks for putting the article up Roro, just revisited this board after coming back from a competition i was in, also brought the winners trophy back to leicester.

cheers bowman

well done you! Lets hope your good luck will extend to this share. It has gone rather quiet.

A seminar in london starts today which orca are involved in to do with IPTV, it is also on tomorrow and then they head to germany for five days.

Regards Bowman