Key Highlights
Q3 2001 revenues of £3.2 million (as announced on 4 October 2001) reflect the difficult trading conditions in the latter part of the quarter;
Operational efficiencies secured in the period, bringing monthly ongoing operating costs down to the current £2.3 million per month before depreciation and amortisation;
Forthcoming launch of Service Activator 3.1 considerably widens market for the software; Step change in relationships with the key hardware manufacturers, systems integrators and software vendors reinforces clear market leadership;
COLT and Telewest Broadband join Energis with live services deployed using Service Activator.
Ashley Ward, Chief Executive Officer of Orchestream commented:
Clearly market conditions in Q3 2001 were very difficult and this impacted our ability to close deals in the quarter. Despite this, however, we believe that the fundamental prospects for the business remain very positive. Customer activity levels are high and as such we are confident in meeting current revenue expectations. We continue our drive towards profitability and cash generation through tight cash control and focus on sales and the meeting of customer needs.
The significant enhancements to Service Activator that we will announce tomorrow in version 3.1 of the software considerably broaden the market that Service Activator can address to include Layer 2 services using MPLS and VLANs, Layer 3 services using IPSec, and multi-network VPNs. Service Activator 3.1 helps automate the interaction between the service provider and their enterprise customers by providing the tools necessary to deliver customer self-provisioning. The product also includes seamless integration with InfoVista to deliver one-touch activation and assurance of VPNs and other services.
These enhancements, together with the steps we have taken to reduce our cost base and the continued progress we are making with our customers and partners, give us confidence in our ability to achieve our medium term goals.
