Originally known for its streaming software, Ra’anana, Israel-based Emblaze has been struggling for years but now has a broad base of mobile software, including its emoze push email, while its Orca Interactive subsidiary provides IPTV middleware for video-on-demand and broadcast services.
However, it’s the Emblaze Mobile operation that now provides 99% of revenue. A year ago, Emblaze appointed experienced O2 executive Laurence Alexander as chief executive of its London-based mobile operation and it followed this up by acquiring a strategic interest in multimedia handset distributor Global Telecoms Distribution Plc.
While the handset business was originally focused on the Far East, about 90% of its handsets are now sold in Europe with the UK accounting for 30%. The company’s philosophy has been to tailor each handset to distinct types of user. It now plans to move into additional mobile value-added services to increase the offering around mobile devices.
It said these services will include mobile content, airtime, and other complementary technologies, services, and customized solutions that will further strengthen its position in the marketplace. It expects such services to become a more significant part of the business in 2007 and contribute to an increase in gross profits and further growth.
The one doubt over the company is its profitability. The $260.9m revenue was dwarfed by $269.7m costs and expenses, and it only moved into profit thanks to a $15.8m gain from the sale of its Adamind content adaptation subsidiary. Such a rapid ramp-up of revenue is costly in the short term but it should reach trading profitability in the full year.
