Sweden, 2014-05-22 09:15 CEST (GLOBE NEWSWIRE) --
Increased license revenues in the quarter
During the quarter, sales amounted to SEK12.1m (18.2), corresponding to a decrease of 34%. However, Q1 2013 was a relatively strong quarter, leading to high comparatives. Sales during the past 12 months fell by 10% compared with the previous quarter. However, license revenue increased during the quarter by 39% compared with last year, which is a contributing factor to the gross margin increasing to 61% (47%). The company has also implemented cost savings that should cut costs by SEK 8m annually. The effect of the programme on earnings for the year is SEK 4.5m, which will gradually affect future quarters positively. Operating profit amounted to SEK -2.1m (-0.8).
Partnership with a furniture chain
After the end of the quarter, ZetaDisplay signed a collaboration agreement with a furniture chain to supply its media platform for Digital Signage and Last Meter Marketing. The retail chain is a leader in furniture and interior design that has provided home furnishing solutions for over 50 years. The agreement gives ZetaDisplay full responsibility to supply through its ZetaStudio digital full-service agency, which has developed the concept for the client and produced content shown in the displays. The contract runs for four years, and the company estimates the total value will amount to SEK 20-25m. Installation has started.
Falling share price during the year
Since January, ZetaDisplay's share has declined from SEK 4.5 to SEK 3.2, which represents a decrease of 29%. The Stockholm Small Cap Index has risen over the same period by 10%.
Penser is downwardly adjusting its sales estimates for 2014E
Following the report, Penser is cutting its sales estimates for 2014E by 3% due to lower hardware sales than Penser had previously expected. However, Penser is upping its operating profit projections for 2015E and 2016E by 4% and 14% respectively, due to stronger growth in license revenues, resulting in a higher gross margin.
The whole analysis is attached to this press release and can also be downloaded at http://www.penser.se/epaccess/zetadisplay
For more information please contact:
ZetaDisplay AB (publ)
CEO Leif Liljebrunn
Telephone: +46 70 845 80 52
ZetaDisplay is a leading supplier of Digital Signage to major chains in the retailing and service sectors of the European market.The head office is in Sweden and there are sales offices located in Denmark, Norway, Finland, Estonia and the Netherlands. Since April 2011 the company’s shares have been traded on NASDAQ OMX First North Premier, using the ZETA abbreviation. The Certified Adviser is Erik Penser Bankaktiebolag. More information can be found at http://www.zetadisplay.com
About Digital Signage and multi-channel communication
ZetaDisplay defines Digital Signage as a system for advertising, profiling and retail store communication, which forwards audio, images and film related to retail stores and information in the public environment. A Swedish name for Digital Signage translates as digital retailing communications. Solutions based on digital displays form a large part of the market, but development is proceeding towards the utilisation of more digital channels to communicate customer offers and other information. This is a matter of solutions that are integrated into social media and web sites, and apps for smart mobile phones and tablets which create interaction with customers. Development is also progressing towards integrating solutions with retailers’ cash desks for automatic price updating and the automatic switching of offers on the digital displays.