Wondering why share price fell so much today. Share Consol is meant to be of benefit to a share price and the name change is certainly appropriate. Does the GBP fall affect TMZ adversely ? I would have thought TMZ was part of those who will gain exporting to the US and Europe and converting USD and EUR into more GBP ? Any insights out there ??
Ah, Autumn must have arrived with these good old chestnuts: a share consolidation and another change of name. The former is long overdue in view of the excessive number of shares in issue, and the latter - well the least said about that the better...
"You are invited to visit the Frontier Silicon demonstration stand, where you can experience our latest Smart Audio platforms incorporating Google Cast, Spotify Connect, Apple AirPlay, Advanced audio synchronisation, and many other features. Contact details to make an appointment are found at the end of this invitation.
Frontier is at the leading edge of connected audio development, partnering many of the major companies producing the technology and services driving this growing and vibrant market. Our technology can be found inside products from all leading consumer audio brands.
Join us to see the technologies and solutions that will enable a new generation of consumer audio devices in 2016/2017:"
Antenna company Filtronic (FTC) has been further invested in on 2nd Sept. - A huge purchase by an existing investor. She now owns 19.1 m shares. Or 8% of the company approx. No wonder they are on the rise.
"Profits" - well, you need your crystal ball to determine that one, but with the huge market share, Cast momentum, and though unconfirmed officially, Echo on top, there has to be hope that with even the minimal leadership evidenced to date, profits, and fairly healthy ones, are there for the taking in 2016/17 and beyond.
$100m revenues, 40% margin, R&D and admin costs removed and you're left with something to justify a higher market cap than we enjoy today in my view.
Hardly ramping just joy that after years of development the breakthrough appears to be here. Operational profits are now likely but I suggest you look at the financials yourself as a bit of DYOR never did anybody any harm.
Toumaz (AIM: TMZ), a pioneer in digital radio and smart audio technologies, today announces that Frontier Silicon, the Group's consumer audio business, has been chosen by Harman International Industries, the world's leading provider of wireless home audio devices ("Harman"), to power its new Google Cast-enabled wireless home speaker, the JBL Playlist.
Says Mr Sethill: In the past two years, weve been growing in excess of 20 per cent a year and that should continue this year. With the adoption of smart technologies, I think that within two to three years we will double the size of our business to a revenue of $100 million.
AS finally opening up on googlecast now the launch is imminent. Only 2 parties supplying the platform. I heard 4 months ago there were 3 suppliers but one was failing to deliver. Good that has been the case. Now talking $100m of revenues in a couple of years so 20% growth rate about to accelerate.
The author of that blog is Pablo Fraile, Head of Product Marketing at Frontier Silicon.
His LinkedIn profile https://www.linkedin.com/in/pfraile mentions he has "Product roadmap ownership", so the blog is no idle speculation.
The key section from the blog is this (regarding Amazon Echo and Google Home) - "Implicit in all this is the idea that Google and Amazon are building these devices as a means to enable a market, rather than to become hardware vendors. The challenge for audio manufacturers is, then, to deliver on the customer promise that their product will offer the same experience as the Google or Amazon version, and will do so for its lifetime."
So, what TMZ are planning to do is offer a module that duplicates the functionality of the Amazon Echo and Google Home devices, plus lots more (Apple Music, Spotify, etc.)
Clearly this will be a massive seller for them when it is launched.
I spoke with some fellow investors and we went through our collective notes regarding Amazon. They were mentioned by Anthony at the 2015 AGM and in various chats afterwards, so I am convinced we are involved in the Amazon Echo story.
What none of us know, is how this can or will be commercialised for Toumaz/Frontier - the all important "what's in it for us" question.
Yes......and perhaps that would be no bad thing if it finally, once and for all, draws a line under the egregious erosion of shareholder value we've seen in recent years! I still can't quite believe we disposed of Sensium for only about a third of what we spent on healthcare R&D aIone last year, not to mention the millions that preceded it in years gone by, but enough has been written on that sorry topic already. It will likely push the deficit on retained earnings above £100m which will continue to serve as a reminder of the Sensium debacle. One way for the BoD to address this would be to obtain High Court sanction to cancel the share premium account and transfer it to reserves, which would roughly wipe out the deficit.
Indeed, I was (intentionally) grossly over simplifying.
I anticipate 'significant' exceptionals to write off and wind down Sensium involvement personally.
The fact remains, the board repeatedly confirmed that they were on target for cashflow positive around now, and Sensium was consuming £700k/month, so there are plausible reasons to be slightly more optimistic if the board deliver on their promises.
The 2015 loss from continuing operations was £16.3m, comprising £7.3m from Healthcare, £7.2m from Digital Audio and £1.9m from Group. My take on what Digital Audio may produce for the full 2016 year is as follows.
Assuming no repeat of the exceptionals (£1.1m) or impairment charges (£3.3m) seen in 2015, the £7.2m loss becomes a £3.1m loss. R&D in the first half fell to £2.6m from £4.7m so a corresponding percentage reduction in 2H would give £1.5m or £4.1m for the full year, a reduction of £3.3m from last year's £7.4m. Add that back to the £3.1m loss noted above gives a profit of £0.2m. Finally adding back depreciation of £0.4m (we're talking EBITDA here, not actual profit) gives £0.6m, so I can see the Digital Audio division (not the company as a whole) being cash generative this year.
What we don't know is how large the group charges will be (almost £2m last year) or the costs of the Sensium review. Presumably the advisors who took a year to recommend disposal for £1m, assuming their advice was followed, did not come cheap! I suspect it is these imponderables that are inhibiting an improvement in the share price.
Selling pressure would suppress the sp which is of no interest to those who may wish to exit. Perhaps they may take the view that the sp will rise if they stay put thus enabling them to exit more slowly and profitably. I don't know and I doubt they read this bb for others views but maybe they might want more of their money back by being patient. Time will tell as always.
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