ADB Group reports second-half 2007 business update
Geneva - November 1, 2007
Advanced Digital Broadcast Holdings S.A. (SWX: ADBN) reports today
its second-half 2007 update on the progress of its business.
In second-half 2007, the Group continued the expansion of its
customer and product base, in all segments of its activity. It also
continued working on the improvement of its manufacturing and supply
In Set-Top Boxes (STB), the Group announced in September the addition
of T-Com Innovation to its customer base. It also won contracts to
supply new generation of products to several customers: a
High-Definition, Hybrid IPTV PVR to Telefonica Spain; a HD decoder to
Yes in Israel; and a High-Definition IPTV PVR for the US IPTV market,
which is expected to start deployment within year end. Since the
beginning of 2007, the Group's STB customer base has grown by 6 new
customers, and its product mix continues shifting towards high-end.
In Software and Services, the Group's affiliates have successfully
introduced new products, some of which are being commercially
deployed by its customers. In particular, Osmosys' MHP(TM)-based,
end-to-end solutions are being deployed by INDI in Belgium and
Multimedia in Poland, and EGG(TM), its latest innovative solution
bringing 3D graphics to STBs is attracting massive market interest.
In the US, Vidiom continues to lead the OCAP(TM) development wave
with major players such as CableLabs and prominent MSOs, and
progressively evolving from a pure services to a product company.
Finally Simple, the Group's start-up for new content and technology,
keeps developing its customer base and business at a satisfactory
The Group has been making significant progress regarding STB
manufacturing and operations. In the third quarter of 2007, the Group
has taken appropriate actions to consolidate its production in
Thailand, where substantially all the Group products are now
manufactured. One-off costs directly related to this move will have
to be incurred in the remainder of 2007, and overall, supply chain
has been sub-optimal. The Group believes this strategic decision will
simplify its supply chain and materially improve its execution
capabilities moving into 2008.
The Group has also decided to improve the organization of its STB
affiliate by the creation of dedicated business units, so to better
match market and customers dynamics. This new organization, which is
aimed at increasing the effectiveness of the existing engineering,
marketing, sales and management teams, will be fully deployed in
Finally, following the amendment of certain terms of its strategic
partnership with ITI Neovision as announced on August 9, 2007, the
Group's June 30, 2007 amounts receivable from this customer have been
reduced by US$ 30 million. Standard payment terms are now being
applied on product deliveries to this customer.
"We continue our efforts to align our overall efficiency with our
demand" said Andrew N. Rybicki, Chairman and CEO. "We put a
significant effort into consolidating substantially all our
production in Thailand. The main steps have been successfully
completed, and the next two months will be key. With the changes that
we are conducting, including the new organization of our STB
business, we will be in a good position to start 2008 on a solid
ADB Group management will hold a telephone conference today at 15:00
CET to comment on this release.
To connect to this conference, interested participants should dial:
+33 1 7226 0165.
To ask a question, participants will be required to dial: 01
OCAP(TM) is a trademark of Cable Television Laboratories, Inc.
DVB and MHP are registered trademarks of the DVB Project.
About ADB Group (SWX: ADBN)
ADB Group (www.adbholdings.com) was founded in 1995 and is a leading
developer of solutions required to view and interact with digital TV
broadcast through cable, satellite, terrestrial and IP networks. The
Group primarily sells consumer premise devices, including set-top
boxes, with over 9 million units deployed since 1997. The development
and sales of the Group's products and services are conducted in three
main operating segments: the Digital TV Equipment segment, mainly
operated by ADB (www.adbglobal.com), Software and Services segment,
encompassing Osmosys (www.osmosys.tv) and Vidiom Systems
(www.vidiom.com) and New Initiatives segment, which includes
interactive applications, new media, content and related services.
This segment operates essentially under the Group's tele.DOM
(www.teledom.tv) and Simple (www.simple.tv) brands.
This press release or related communications may contain
forward-looking statements. You are cautioned that any such
forward-looking statements are not guarantees of future performance
and involve risks and uncertainties, and that actual results may
differ materially from those in the forward-looking statements as a
result of various factors, among which:
* future developments of the world digital TV market, in
particular the future demand for digital TV products in the key
markets and from key customers served by our Group;
* pricing pressures, competitive market situation;
* our and the industry's capability to successfully and
timely innovate and develop challenging technology, and our
capability to hire and retain high-level employees;
* changes in the exchange rates between the US$ and the main
other operating currencies of the Group, including the Euro and the
* our ability in an intensive competitive environment, to
continue securing orders from existing or new customers and to
achieve our pricing expectations for volume supplies of new
products in whose development we have or are currently investing;
* the ability of our suppliers to meet our demands for
supplies, qualitatively or quantitatively, and to offer competitive
* our gross margin could vary significantly from
expectations based on changes in revenue levels, product mix and
pricing, changes in unit costs, and the timing and execution of
* changes in the economic, tax, social or political
environment, including import and other duties, military conflict,
terrorist activities, as well as natural events such as severe
weather, health risks, epidemics or earthquakes in the countries in
which we, our key customers and our suppliers operate;
* our ability to obtain required licenses on third-party
intellectual property on reasonable terms and conditions, the
impact of potential claims by third parties involving intellectual
property rights relating to our business, and the outcome of
* the results of actions by our competitors, including new
product offerings and our ability to react thereto;
Advanced Digital Broadcast Holdings SA undertakes no obligation to
publicly update or revise any forward-looking statements. Advanced
Digital Broadcast Holdings SA reserves the right to amend the
information at any time without prior notice.
The information contained in this press release may not be considered
as being a substitute for economic, legal, tax or other advice and
you are cautioned to base investment decisions or other decisions on
the content of this release. You are recommended to consult your
investment advisers or other advisers prior to making any decision.
This press release is not an offer of securities for sale or a
solicitation to invest in Advanced Digital Broadcast Holdings SA
securities. In particular, it is not an offer of securities for sale
in the United States of America, its territories and possessions.
Securities may not be offered or sold in the United States absent
registration or an exemption from registration under the U.S.
Securities Act of 1933, as amended. Advanced Digital Broadcast
Holdings S.A. does not intend to register its securities in the
United States of America.
For further information please contact:
EVP Corporate Development
Broadcast Holdings S.A.
7, avenue de Tournay
Tel: +41 22 592 84 30
Fax: +41 22 592 84 32
--- End of Message ---
ADB Holdings S.A.
Avenue de Tournay 7 Chambesy Switzerland
CH0021194664; Index: SPI, SPIEX, SSCI;
Listed: Main Market in SWX Swiss Exchange;