Zoo Digital set a doleful but expected scene for its full year results with an interim statement for H2 indicating revenue will be down compared to H2 last year, although this is in line with its expectations.
The company, who provides media production workflow software and services, said H2 revenue is expected to come in at $11.2m (vs $13.8m). Zoo’s problem is that its market is undergoing radical change as consumers move away from the purchase of DVD’s. Zoo has diversified but it is taking time for the changes to work through (see here for the background). It has also acted to cut costs and is managing to improve on some levels. H2 adjusted EBITDA and adjusted operating profitability are expected to be $1.0m and $0.2m respectively, compared to losses of $0.4m $0.9m in the six months to 30 September 2011). For the full year the company expects adjusted EBITDA of $0.6m (vs $2.5m) and an operating loss of $0.8m (vs an operating profit of $1.5m).
Like many in the tech industry Zoo will have been happy to see how well Apple’s iPad is selling, as ebooks is one of the areas it is looking to for fresh revenue but it does not have an easy road ahead.