Trading Statement
OMG PLC
24 September 2001
OMG plc - Positive Trading Update
OMG plc ('OMG'), the group that delivers electronics and software products
based upon 3-dimensional information contained in 'the moving image' to the
entertainment, medical, scientific and engineering industries, is pleased to
provide details of current trading.
Summary
* Sustained growth across both Vicon sub-divisions, Entertainment and
Science & Engineering
* Strong demand for Vicon motion capture in the Far East, Europe and UK
* Major US manufacturers purchase Vicon-driven avatars for virtual
engineering
* 2d3 successfully commences shipping boujou
Vicon
Whilst there are signs that some US entertainment customers may be deferring
purchase decisions, there is strong and growing demand for motion capture from
computer games developers and animation producers in the Far East and Europe,
including the UK. During the summer months, Vicon mocap systems were sold for
entertainment use in Japan, Korea, China, Germany, the US and UK, including
new motion capture studios to service the London visual effects market.
Science & Engineering shows good progress and excellent potential. 'Virtual
Engineering' is enjoying a major upturn as manufacturing industries seek to
contain costs. Many large manufacturers now operate a policy that no physical
prototyping is permitted until every possible function, including human
interaction, has been thoroughly simulated. Through technical and marketing
agreements with leading US and European CAD simulation software companies,
Vicon is becoming the preferred means for driving VE avatars (human
simulations). A $200,000 order has recently been taken from the US-based
aero-engine conglomerate Pratt & Whitney, with similar contracts from other
leading manufacturers in the pipeline.
Vicon's 'traditional' business of sales to medical and academic customers,
including a steady stream of complete system upgrades, continues strongly in
all territories.
2d3
2d3 commenced shipping its first product, boujou, the world's first fully
automatic 'through-the-lens' camera tracker, in April 2001. Camera tracking is
the basis of all visual effects shots, which can number many 100s in a single
production like Tomb Raider or Harry Potter.
Industry reaction to boujou has been very positive, with the customers
reporting substantial savings of time and cost. With 3D post-production costs
running at $2k - $3k per 'seat' per day, it doesn't take long for boujou to
cover its $10k price. 'boujou gave us great results very quickly. It's a
brilliant piece of software' - Will Byles, Head of CGI at Aardman Animations.
High-profile marketing, including a substantial OMG presence at SIGGRAPH a
major US trade exhibition in Los Angeles, has led to requests for the boujou
demo CD (a fully functional version with disabled output) at a current rate of
over 1,000 per month. Having focused initial sales in London and Los Angeles,
2d3 has now appointed distributors in all major centres of post-production
around the world.
Staffing
At the time of the company flotation earlier this year, OMG focused on the
need to expand personnel to exploit new market opportunities. In the past,
recruiting top-quality sales staff has proved difficult. However, recent
weaker conditions in other industries have allowed both the UK and US offices
of Vicon and 2d3 to appoint staff with highly relevant experience.
Outlook
With increased uncertainty in world economic conditions, the Company is
planning prudently for the year to 30th September 2002. Nevertheless, the
present outlook indicates a continuation of OMG's exceptional record of
growth.
OMG will make a full financial report for the year to 30th September on
Tuesday 4th December, 2001.
For further information, please contact:
OMG plc 01865 261800
Julian Morris, Chief Executive
OMG: www.omg3d.com
Buchanan Communications 020 7466 5000
Tim Thompson/Bobbie Swanson