Telecommunications technology provider Emblaze Ltd has posted a profit for the first half of the year, thanks in part to the huge demand for its mobile handsets in the Far East.
For the six months ending June 30, the Ra’anana, Israel-based group turned around a net loss of $29.4m last year, and posted a net profit of $10m. The group posted sales of $71.5m up from only $2.1m in the year-ago period.
The growth in revenue was principally down to two factors. One was the additional revenues of $23.3m in the period due to the flotation of subsidiaries, and the second was the demand for its mobile handsets.
At the end of the first half, Emblaze had cash and cash equivalents worth $268m, compared with $249m at the end of 2004.
Emblaze CEO Eli Reifman said: Emblaze is one of the fastest growing telecom services and technology providers in Europe. Our focus on some of the most exciting segments of the telecoms industry means Emblaze is superbly positioned to continue delivering strong growth and shareholder value as telecoms market experiences a sustained upturn.
Emblaze is essentially a group of companies developing solutions for telecom operators. By far its biggest unit is Emblaze Mobile, which designs and builds mobile phone handsets. Its second biggest unit is Adamind, a provider of content adaptation (transcoding) for mobile operators. This unit was formed last November from the merger of the transcoding business units of Royal Philips Electronics and Emblaze Ltd.
Other units include Emblaze VCON, which provides wireless video communications technologies and conferencing solutions for operators and enterprise markets over IP networks, and Orca Interactive, which offers IPTV middleware for video-on-demand and broadcast services aimed at telcos, and cable and xDSL operators. This unit narrowed its net loss for the first half of the year to $1.3m from $2.6m in the first half of 2004. Sales increased seven-fold to $3m, from $400,000 in the same period in 2004. The rise was helped by a number of significant new license agreements and pilots.
Looking forward, the group said it is on track for revenue of $120m for the full year 2005. Revenue in 2004 totaled $57.5m.