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The changes and additions to the Forbidden Technology (LSE:FBT) Board are aimed at increasing the focus on commercialising its leading edge cloud video technology; Forscene and its recently launched video social network ‘eva’. As a result of a strategic review Forbidden is seeking to broaden the customer base for its world-leading cloud video platform both for the commercial and consumer market.
The newly appointed Jim Irving, had a global role for the commercial development of deltatre Media, a sports marketing group with 29 years of experience at the highest levels of international sports.
Forscene is the professional video editing software division and upgraded products were launched that should extended its utility and increase the average contract size of its mainly sports broadcast clients. In addition, it is looking to address the larger professional market for its cloud video post-production platform. A new product, Media Asset Manager includes a range of features that can be controlled by the user which develops the revenue model with an ’all you can eat’ licensing option. The R&D is completed and paid for and clearly increased sales of Forscene will add value and Jim’s appointment could clearly help open commercials opportunities.
The consumer market is being developed with eva which is its free cloud -video social network and Captevate the ‘easi’ consumer video editor, which has a pay-as-you-go revenue model. A last technical hurdle was jumped in August when a new video codec was announced that allows the efficient compression and decompression of video. The eva, video social network was launched in July and Captevate is to be launched later this year. These are complementary services as the more eva grows the bigger the market becomes for Captevate. The services are aimed at the vast number of people that use phones to take videos. The free to use eva allows the video to be uploaded into the network and so free up phone space. Captevate can edit the video simply with a ‘ cut and paste’ click and drop action with the ability to add sound, captions and other ‘fun’ features.
The share price has yet to recover from the poor interims to 30th June , but we anticipate a stronger second half for Forscene. Any report on the number of eva users would also be a indication of the speed to revenue of the complementary Captevate.
Financials
Net cash was around £2.8m at the interim’s and assuming no reduction in burn rate it should be sufficient for nine months or so.
Trading Strategy
Newsflow should increase as the new consumer video network gains traction in what is a potentially an exciting market.
Forbidden Technology (LSE:FBT)
4.75p (4.5p-5.5p)
Mkt Cap: £6.6m
Next Results: Finals to December
Last OMG! Price 6.4p
