Megabuyte - Technology sector intelligence

Mobile advertising and marketing provider Velti has reported interim results which in revenue terms are not only lower than what it flagged back in July (Premium Plus readers see here), but also involve yet another substantial rewrite of historic financials. If our back of the envelope estimate is correct (though we admit little confidence in our ability to predict Velti’s financials), it is on track for c25% revenue growth for FY10, hardly justifying its current 3-4x revenue multiple. Read our full assessment of the results in Newswire Plus.

Redstone spring clean continues with exit from Birmingham BSF

As part of the tidying up exercise currently underway a Redstone, the company has announced yesterday that it has novated its Building Schools (BSF) contract in Birmingham to Bovis Lend Lease for a consideration of £2.0m plus £2.2m in settlement of amounts owed to Redstone. In essence what this means is that 27 Redstone employees will TUPE across to Bovis (following the inevitable period of consultation) and that Redstone will have no further involvement in the project. In the year to March 2010, Redstone reported an underlying loss on the contract of £2.3m. Read our first thoughts on the deal in Newswire Plus.

Vyke still facing tough challenges

mVOIP provider Vyke continues to suffer difficult markets, with first half revenues down sharply year on year, though the business seems to be running at a reasonably stable, albeit loss making, level. The Bonjour Europe JV (Premium Plus readers see here)) is now bearing fruit in terms of network and operational synergies, which at least gives Vyke some breathing space to get its house in order. Premium subscribers can read our analysis of the figures in Newswire Plus.

Mobile Tornado starting to gain traction

Results from mobile push to talk provider Mobile Tornado suggest that the company is now starting to gain traction in the market place. Whilst revenues were down from £2.1m to £0.6m, last year’s revenues included forward sales from parent company InTechnology (Pemium Plus readers see here for our coverage of InTechnology). However, the outlook is much improved, with a major order from an Indian operator and a new distribution deal with Psion. Despite the revenue decline, operating losses were more than halved to £0.4m, aided by shifting R&D from Israel to the UK and India.