Trading Update
Intercede, a leading developer of security
management software, today provides an update on trading ahead
of its preliminary results for the year ended 31 March 2002.
In the period following its admission onto
AIM, the Group has taken steps to position itself as a global
business, able to earn long term revenues for its proprietary
product, edefice. A great deal of time and effort has been devoted
to this purpose, culminating in the release of edefice 6.0, as
announced on 16 October 2001.
At the time of the interim results announced
in December 2001, the Board also advised that, whilst a move away
from UK based project work was inevitably serving to reduce short
term revenues, encouraging progress had been made with the announcement
of OEM agreements with two major smart card industry players.
This will result in the incorporation of edefice into those companies’
core product lines, thereby offering considerable scope for the
generation of significant future revenues.
Whilst further progress has been made in the
second half of the financial year, short term revenues have continued
to be depressed in a difficult and slow moving market. As a result,
revenues for the second half are likely to be broadly in line
with the first half, prior to consideration of the $800,000 up
front commitment from our OEM partner referred to below.
Good progress is being made both with the existing
partner relationships and further potential partners. The Group’s
technology is now being actively marketed as a core part of Oberthur’s
AuthentIC Security Manager solution. This has already resulted
in edefice effectively forming part of Oberthur’s offering
for a number of high profile projects around the world which are
expected to be placed within the next 12 months.
The other OEM agreement, which was announced
on 7 December 2001, included a commitment to buy an initial number
of licences to the value of $800,000 against a series of development
milestones. To date $400,000 has been paid over to Intercede and
it is anticipated that the balance will be received by 31 March
2002. Having due regard for current market concerns about revenue
recognition, the accounting treatment of the $800,000 will be
determined as part of the year end audit process.
Whilst the Directors believe that the two existing
OEM agreements are sufficiently significant to see the Group through
to profitability in due course, discussions with a number of other
major industry players are already taking place. Further updates
on progress will be provided as and when agreements are signed.
Richard Parris, Chairman & Chief Executive
of Intercede, commented:
“I am pleased with the progress being
made to consolidate Intercede’s position as a leading international
supplier of security management software for smart cards.
Although trading conditions have remained difficult
throughout the current financial period, the Group has made significant
progress in establishing a platform for the generation of significant
future revenues. We will continue to work closely with existing
and future partners to fulfil our ambition of becoming a major
player in the global IT security management market.”
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Enquiries:
Intercede Group plc
Richard Parris, Chairman & Chief Executive
Andrew Walker, Finance Director
Tel. 01455 558111
College Hill
Archie Berens
archie.berens@collegehill.com
Clare Warren
clare.warren@collegehill.com
Tel. 020 7457 2020
