Video-over-IP developer Indigovision Plc is in talks with an unnamed potential buyer, but if a bid for the company fails to materialize, it plans to return 10m pounds ($15.7m) of surplus cash to investors.
The Edinburgh, Scotland-based company’s revenue has failed to live up to expectations, and after a review of the business it has decided to focus on the CCTV market and sell through systems integrators.
This means abandoning its previous approach of operating across the supply chain. At one time, Indigovision even had ambitions to offer its software platform to enable users to view live TV and video-on-demand on their PDAs. Now it plans to concentrate on the medium to high end of the CCTV market, where its IP technology is more economical than analog systems.
Despite cut-backs, the company is still losing money and recorded a loss of 1.6m pounds ($2.5m) in its first quarter to October 31, down from a loss of 2m pounds ($3.1m) on revenue 15% lower at 300,000 pounds ($471,000).
With cash of 20.9m pounds ($32.8m) in the bank, and hopes of rapid growth long gone, Indigovision can afford to return 10m pounds ($15.7m) to its shareholders. It follows the example of programmable chip designer ARC International Plc which earlier this month decided to return 50m pounds ($79m) to its investors.