TORONTO – Tri-Vision International, best known for its V-chip technology, saw overall sales slide by 13.4% to $6.8 million and its loss grow more than double to $2.85 million for its fiscal year end, March 31st, 2006.
"The year end results were in line with our expectations, and the company is well positioned to execute on its business plan going forward. Tri-Vision has proven that it can license its V-chip technology in the United States as it has done in Canada," said Najmul Siddiqui, CEO.
"Performance for fiscal 2006 can be described as a year for investment and transition," added Khalid Usman, CFO, "The investment was in Tri-Vision’s V-chip licensing efforts which resulted in awarding 12 new US licenses and 15 new Canadian licenses; and the transition occurred as the company coped with the shift in the marketplace to digital broadcasting. We are continuing to focus our efforts on licensing opportunities for the V-chip in the United States, having already awarded licenses covering one-third of the US market."
Manufacturers are in the process of winding down lower priced analog television production and pushing out analog inventory to ramp up digital television (DTV) manufacturing which includes Tri-Vision’s V-chip, said the company. Significant increases in demand and corresponding increases revenues are expected as with the changeover.
The company has re-positioned its core business "to enable an ongoing flow of substantial revenue from Canadian cable companies," added the release, referring to its launch of distribution division Think Broadband.
Management contends that revenues in both core businesses, licensing and CATV, have been affected by the distinctive shift occurring in the marketplace from analog to an all digital broadcast system throughout North America scheduled to be completed in fiscal 2007.
The CATV business line, which previously had been a strong performer, has had lower product sales and pricing, increased material costs and higher staffing costs contribute to the lower performance. However, the leadership that Sat Gil, vice-president operations, and Brent Smith, vice-president, sales and marketing, have contributed to Think Broadband Solutions since their hire in July 2005 "is remarkable and innovative. In a very short time, they have established a number of key distribution agreements and favourable supply deals to form new revenue streams by providing added value products to cable operators with sustainable profit margins, results of which will be noted in fiscal 2007," said the release.
"The outlook for fiscal 2007 is positive with revenue increases expected for Think Broadband with the recent established of its value-added CATV services and for noticeable improvements in royalty revenues during the second half of the fiscal year," said Siddiqui.
