Trading Statement
Anite PLC
12 November 2007
For immediate release 12 November 2007
Anite plc
Strategic Partnership with Agilent
Half Year Trading Update
Anite plc ('Anite' or 'the Company'), the international software and solutions
company, today announces:
•a strategic partnership between Anite and Agilent Technologies Inc.
('Agilent'); and
•a trading update for the six months ended 31 October 2007.
Strategic Partnership with Agilent
Introduction and background
Agilent and Anite, two leading providers in the global wireless handset and
network testing market, have entered into a strategic partnership to deliver
market leading test solutions for the design of next generation mobile
communications products conforming to the new 3GPP Long Term Evolution (LTE)
standard.
In the absence of acceptable alternatives being available in the market place,
Anite has pursued a strategy of developing its own in house hardware platforms
in respect of the LTE standard. This strategic partnership between Agilent, a
leading hardware provider, and Anite, a leading software provider, will enhance
development of best of breed solutions, making a clear business case for Anite
to cease its in house development.
The strategic partnership
Under the terms of the partnership, and by bringing together the combined
strengths of the two companies, Agilent and Anite plan to provide a broad,
comprehensive portfolio of solutions that address the entire product lifecycle,
from early development through production test. It entails combined development
activity, adoption of each other's software and hardware, and sharing of know
how. Customers of both companies, many of whom are the same, will benefit from
the combined resource and common platform.
LTE has the potential to enhance 3G networks and enable significant new service
opportunities in relation to mobile TV and video. Its commercial success
requires the early availability of testing solutions that parallel the
standard's development. Through its strategic partnership, Agilent and Anite are
well positioned to comprehensively address this need, while better servicing
customer requirements across the entire development lifecycle. The combined
solutions, which are anticipated to be market leading, will become available in
2008.
Financial impact on Anite
The partnership is expected to result in improved revenue opportunities and
reduced research and development and third party costs for Anite, with Wireless
having ceased development of its own hardware platform, Nevis. The impact of
asset write downs, cash settlement of exiting the current Nevis development and
restructuring costs are expected to be in the region of £3m. The principal
financial benefits of the agreement are expected to be derived in Anite's
financial year commencing 1 May 2008 and are expected to be ongoing.
Half Year Trading Update
Anite's performance for the six months ended 31 October 2007 has been broadly in
line with that indicated at the time of issuing its first Interim Management
Statement (IMS) on 19 September 2007 and consistent with the Board's
expectations. The period has been characterised by Anite's customary seasonality
and slow start to the financial year, with profitability and order intake as a
whole being weighted to the latter weeks of the half year, reflecting normal
trading patterns in the Company's businesses, especially Wireless.
In overall terms, orders and revenues are up and profits marginally down
compared to the same period last year. Despite a strong October performance,
profits in Wireless have been impacted by the tightness being experienced in
certain customers' budgets (as referred to in the IMS) together with the planned
increase in development spending in that division. Nemo has performed strongly.
Travel was significantly ahead of last year and Local Government benefited from
the continuing reduction in Pericles losses, reporting an overall first half
profit for the first time in two years. SIS profits were down year on year as
anticipated.
We are managing the business assuming the weakness in the Wireless market
continues. Consequently we have taken some cost reduction actions, which
together with the financial benefits of the Agilent agreement outlined above
should mitigate some of the likely financial impact in the second half.
Commenting, Steve Rowley, Anite's Chief Executive said:
'We believe that the financial and operating benefits to be derived from the
strategic partnership with Agilent will be significant. Despite the current
weakness in Wireless we remain confident about the prospects and strategic
positioning of this division within its market.'
-Ends-
A Conference call for analysts and investors will be held at 8.30am today;
please call Will Henderson at Smithfield for details (020 7360 4900)
Anite plc www.anite.com
Steve Rowley, Chief Executive 01753 804000
Christopher Humphrey, Group Finance Director
Smithfield 020 7360 4900
Reg Hoare/Will Henderson
Print resolution images are available for the media to view and download from
www.vismedia.co.uk
Notes to editors
Anite is an international software and solutions company whose primary business
is the provision of industry-specific solutions based on its deep sector
knowledge of the wireless telecoms, public sector, and travel markets. These
solutions almost always include at their core the supply of Anite-owned software
products. Anite offers a comprehensive service to its customers, including
implementation, systems integration, maintenance and managed services, enabling
it to maximise customer satisfaction and financial returns.
Headquartered in the UK, Anite and its subsidiary companies now employs around
1,200 staff across Europe, America, and Asia Pacific. Anite solutions are
recognised as market leaders in their fields:
• all the leading global mobile phone manufacturers use Anite software;
• more than 400 public sector organisations, including all UK police forces
and 75% of local authorities use our solutions; and
• around 40% of UK package holiday bookings were made using Anite software
and managed services.
Wireless (formerly Telecoms)
Anite provides specialist systems and software for testing mobile phone handsets
and networks. Our customers are global technology developers, mobile phone
manufacturers, test houses and mobile phone operators.
Public Sector
Anite is a market leader in software and solutions to key parts of local
government, such as local tax collection, benefits payments, housing management
and social care solutions - as well as an important supplier of secure
information solutions (SIS) to the criminal justice markets.
Travel
Anite is the UK's leading travel technology solution providers for tour
operators, air fare consolidators, and cruise, ferry, motor and rail inclusive
operators in the UK and Europe.
This information is provided by RNS
The company news service from the London Stock Exchange