Zoo Digital Technology with a market set to grow strongly

nothing that! new but investors chronicle rate it as good value!

23 December 2005

ZOO DIGITAL (ZOO)




Zoo Digital says that it's on track to reach profitability by the end of the financial year as its expansion into North America bears fruit. Its ZOOtech division licenses technology that allows video-DVD and interactive-DVD producers to save considerable time and cost on production. And during the half, it signed its first major contract with a Hollywood studio for technology that facilitates the creation of movie titles in many languages. This will boost second-half sales by £750,000.

ZOO reported widening losses in the first half, though, as it invested in its DVD-authoring software, DVD-EXTRA. Its ZOO Digital Publishing unit, which produces interactive DVDs and DVD games, lost £0.7m in the period. But most of its sales come in the second half and the division has now expanded into North America, with a partnership with games producer Snap TV. Edison Investment Research forecasts full-year, adjusted pre-tax profits of £2.4m, giving adjusted EPS of 0.8p (from a loss per share of 0.6p in 2004-05).