Zoo Digital Technology with a market set to grow strongly

jacobjohn7 - 21 Dec'05 - 10:23 - 1284 of 1291


still learning, without anything to go on, everyone is guessing. They have stated that we are on course for full year profit, forecasts are of 2.4mil.
zoo have consulted with people like edison etc. and only they know what backs up this claim. If they werent now on course for that amount of profit, or indeed a loss, they would have got it out with the interims, and the forecasts would have had to be downgraded to that point..

they would have said, increase losses and now full year forecast downgraded... isnt this just common sense.... ?
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oh come on JJ. Zoo have said this for the past TWO years, only to arrive at actual losses on F/Y each time. Now look at the evidence, in black and white, for this year's F/Y prospects:

1. Zoo's Finance Director welcoming increased government R&D tax credits only 2 weeks ago. R&D tax CREDITS (distinct from REBATES), are sums of money given back to companies which run at a loss during a financial year in respect of research and development costs. For me that was the first sign that ZOOtech (as opposed to ZDPL) will turn in a loss again this year.



Robert Deri, chief finance officer at Yorkshire-based computer software and DVD company Zoo Digital, said he particularly welcomed the increased R&D credits.

"We are investing quite heavily in research and development, so this will be great help for us," he said.

"When you make a substantial investment in research and development, you can build up losses, so more support here would be much welcomed."

2. In previous statements (earlier this year) relating to this current financial year Zoo themselves have stated that ZOOtech will achieve profitability in 2005, in addition to increased profit from the ZDPL publishing division. However the latest statement in the interims has changed that, and now reverted back to expecting "Group profitability by financial year end". Again, that makes it clear to me, in no uncertain terms, that they have altered their previous expectations from earlier in the year.

3. The fundraising at the end of May'05 raised over £3M net, and was to be spent specifically within the ZOOtech software division for specific purposes ie. expansion in U.S., expansion into Japan (via collaboration), and to complete certain elements of the DVDExtra software. The profit/loss account and balance sheet figures contained within the interims showed that this money has already been spent by end September 05. However no updates have been given to the market as to how or where this money was actually spent.

This is not deramping, whingeing, or 'muppeteering' as some would like to say. It's facing up to the reality provided by black-and-white evidence from Zoo themselves which, apart from one poster yesterday who just dismissed as "twaddle", has still yet to be addressed on this board. Until Zoo provide any evidence to the contrary it must surely be the case that uncertainty surrounding their spend-rate will continue to drive down the share price, or at best keep it down at current levels.