TAD Tadpole Tech.

RNS Number:0104O
Tadpole Technology PLC
14 February 2008


Tadpole Technology plc

Interim Management Statement


Tadpole today issues its first Interim Management Statement for the period 1st
October 2007 to 14th February 2008 as required by the UK Listing Authority's
Disclosure and Transparency Rules


Operating Results

Operating results for the first quarter (the three months ending 31st December
2007) were broadly in line with expectations. Slightly lower than forecast
revenues were more than offset by lower than forecast operating expenses
resulting in a small positive variance in the planned operating loss for the
quarter. Compared with the first quarter last year, revenues were significantly
higher due to increased licensing fees. However the operating loss was only
slightly lower than last year due to a planned growth in operating expenses,
which increased by 43% with total personnel in the first quarter averaging 51
compared with 29 in the same period last year.

To secure interim funding, 20,000,000 shares were placed with an institutional
investor during the quarter; however the company's balance sheet remains weak
primarily due to historical factors.


Sales Activities

Sales activities increased markedly on the previous quarter. The sales
methodology is predicated on driving potential customers through a proof of
concept (PoC) process. Currently there are over 30 PoCs under way or scheduled.
The comparative figure a year ago was 2.

European interest in Software as a Service (SaaS) was driven partly by Microsoft
related activities in Europe and partly by partner relationships crystallising.
Talks are currently under way with a number of major system integrators to
become preferred partners within their solutions portfolio.

The number of active and qualified prospects in Europe continues to deepen with
renewed interest in the Games on Demand arena as well broad interest in SaaS.
Revenues from several SaaS opportunities are expected to start in quarter two of
2008. SaaS opportunities are polarized with several small and innovative
customers seeking niche applications and larger telcos and distribution
organizations taking more time to technically evaluate the products and the
possible deployment issues.

Logistically, the business experienced some difficulties in managing the
relative rate of change in sale activities, resulting in some deployment and
evaluation delays. Contract staff were hired to address this and a new head of
service has been recruited to oversee customer trials and deployments.

Direct sales of products into the application virtualization sector were slower
than anticipated primarily due to prospects taking longer than expected to set
up PoC pilots. The education market commenced a number of evaluations during the
quarter and currently all trials and evaluations in this sector have been
successful.

US sales activities grew more slowly primarily due to restructuring of the US
sales field operation. A new Vice President of US sales started at the beginning
of the quarter. In the closing part of the period activity levels have increased
with a number of new distribution and integration partners being signed.

Management anticipates more focus on application virtualization solutions in the
US relative to Europe. New telemarketing, sales, support and program marketing
personnel were assigned during the quarter. A dedicated account team was set up
specifically to target strategic level relationships with the major IT vendors.

Pacific Rim sales activities historically have been disappointing and the
company is reviewing its operations in this geographic sector.


Marketing Activities


The focus was primarily on achieving more web and analyst comment (of the
Endeavors brand) using the launch of the Stream24-7.com and AppExpress Lite
freeware products alongside the showcase of Application Jukebox in New York as
the primary attractions. Favourable comment was made by several industry
commentators.

Sales demand generation activities continued to be developed and refined, and
several direct email campaigns supported by telesales were initiated.


Research and Development


The next generation technology platform, Application Jukebox, was debuted during
the quarter and production release is planned for March 2008. Several variants
are planned for different market sectors and are scheduled for release during
2008.A number of new patents were conceived and are currently going through the
application and approval process. During the quarter, the Company's US
subsidiary, Endeavors Technologies, Inc., licensed several patents to games
solution provider Exent.


 Financial Position


The Company had anticipated completing a major funding round during the first
quarter of 2008 and a Prospectus proposing a placing and open offer is in final
draft form. However, current financial market conditions are not favourable and
the Company has not yet received commitments from potential placees to the level
that the Directors consider necessary to maintain existing operations and
finance the planned growth, although the process is still ongoing. The Directors
are also evaluating alternative options.




                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
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