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ADB Holdings S.A. (SWF:ADBN) Corporate news announcement processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- --------------
* Management reiterates confidently its guidance for 2008 * New customer acquisitions during third quarter 2008 * Full order backlog confirmed for the rest of the year * Positive developments in the Software and Services segment
Geneva - 30 October 2008
Advanced Digital Broadcast Holdings S.A. (SIX: ADBN) reported today an update on the development of its business.
The Group's business developed favourably during the third quarter of the year 2008. The supply chain has been performing effectively and according to plan. The operator business in satellite, cable and IPTV segments were this quarter's main drivers. Year-to-date, high-definition TV product sales have grown to approximately two thirds, and PVR sales to more than one third of the overall Digital TV Equipment segment revenue.
The order book for the year is full, driven mostly by a continued strong operator demand and a favourable product mix.
In the area of new business development, the Group established new customer relationships and recorded other significant positive developments during the third quarter of 2008:
* Strong Group, a set-top box distributor which covers most European countries, is starting to distribute the Group IPTV products to tier two and three operators in Europe. * New line of digital terrestrial set-top boxes targeted for Italian markets under the brand "i-Can" are being rolled out. * RiksTV, a leading DTT operator in the Norwegian market, licensed Osmosys' Push Video-On-Demand solution for its new high definition TV service. Simultaneously, Grundig will start distributing ADB's latest HD video recorders to enable the launch of this first Norwegian push-VOD operation. * Vestel, one of the world's largest consumer electronics ODM of digital TV products, will deploy Osmosys' Java-based middleware in the new type of its digital TV receivers. * Osmosys and HitachiSoft announced first commercial deployment of the integrated Blu-ray software solution. The solution provided by Osmosys consists of the Blu-ray disc Java engine which Osmosys licensed to Hitachi.
In September, ADB's high-definition hybrid IPTV digital video recorder ADB-5810TWX won "Best Customer Premises Technology" Product of the Year award from Cable & Satellite International. It is the fifth time the Group has won this prestigious award and the third time in this particular category. This is also the second major award during this year, the first one being the IPTV World Series Award at the IPTV World Forum in March.
The Group maintained positive net cash position at the end of September. During the third quarter, the Group launched a share buyback programme for up to 330'000 of its shares through Bank Vontobel. As of 21 October, the company had bought cumulatively 102'186 shares under the new buyback programme, and thus held in its treasury a total of 389'775 shares, or 6.3%, of its share capital. The buyback programme is continuing.
During the third quarter, considering positive developments in the US cable and IPTV markets, the Group continued to realign its resources to further strengthen its US position. In this context, the Group reorganized its US subsidiary, Vidiom Systems, Inc.: certain engineering resources were transferred to the Group's US cable unit, while the remaining core continues to focus on the Group's middleware and system integration. The non-core professional services business has been disposed of. This reorganization is in line with the Group's staged approach to the US cable market, and is also expected to improve the Software and Service segment profitability.
Andrew Rybicki, Chairman and CEO, commented: "The Group's good performance in the third quarter clearly confirms effectiveness of our strategies and organizational structure introduced in the beginning of the year. I am satisfied with our overall performance, and confident that our strategies will successfully carry us forward. The customer demand has continued to be strong. As usual, we have continued working closely with our customers to assess the market, and business opportunities going forward. Consequently, initial visibility of 2009 is good, and the delivery pipeline has started taking shape."
Overall, the management is satisfied with the Group's results, and confidently confirms the upwards revised guidance given on 12 August 2008 half-year earnings release.
The management of ADB Group will hold a conference call today to comment this business update at 15:00 CET.
To connect to the conference call, participants should dial the following number: +41 (0) 44 580 65 22 To ask a question, participants will be required to dial: 01.
This press release and further information on ADB Group can be found on the Group's website at www.adbholdings.com
For further information please contact: Tina Nyfors EVP, Corporate Development Tel: +41 22 592 8433 Fax: +41 22 592 8432 t.nyfors@adbglobal.com
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About ADB Group (SIX: ADBN)
ADB Group (www.adbholdings.com) was founded in 1995 and is a leading developer of solutions required to view and interact with digital TV broadcast through cable, satellite, terrestrial and IP networks. The Group primarily sells consumer premise devices, including set-top boxes, with over 11 million units deployed since 1997. The development and sales of the Group's products and services are conducted in two main operating segments: the Digital TV Equipment segment, mainly operated by ADB (www.adbglobal.com), and Software and Services segment, encompassing Osmosys (www.osmosys.tv) and Vidiom Systems (www.vidiom.com).
This press release contains forward-looking statements. You are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements as a result of various factors, among which:
* future developments of the world digital TV market, in particular the future demand for digital TV products in the key markets and from key customers served by our Group; * pricing pressures, competitive market situation; * our and the industry's capability to successfully and timely innovate and develop challenging technology, and our capability to hire and retain high-level employees; * changes in the exchange rates between the US$ and the main other operating currencies of the Group, including the Euro and the Polish Zloty; * our ability in an intensive competitive environment, to continue securing orders from existing or new customers and to achieve our pricing expectations for volume supplies of new products in whose development we have or are currently investing; * the ability of our suppliers to meet our demands for supplies, qualitatively or quantitatively, and to offer competitive pricing; * our gross margin could vary significantly from expectations based on changes in revenue levels, product mix and pricing, changes in unit costs, and the timing and execution of shipments ramp-ups; * changes in the economic, tax, social or political environment, including import and other duties, military conflict, terrorist activities, as well as natural events such as severe weather, health risks, epidemics or earthquakes in the countries in which we, our key customers and our suppliers operate; * our ability to obtain required licenses on third-party intellectual property on reasonable terms and conditions, the impact of potential claims by third parties involving intellectual property rights relating to our business, and the outcome of litigation; * the results of actions by our competitors, including new product offerings and our ability to react thereto;
Advanced Digital Broadcast Holdings SA undertakes no obligation to publicly update or revise any forward-looking statements. Advanced Digital Broadcast Holdings SA reserves the right to amend the information at any time without prior notice.
The information contained in this press release may not be considered as being a substitute for economic, legal, tax or other advice and you are cautioned to base investment decisions or other decisions on the content of this release. You are recommended to consult your investment advisers or other advisers prior to making any decision.
This press release is not an offer of securities for sale or a solicitation to invest in Advanced Digital Broadcast Holdings SA securities. In particular, it is not an offer of securities for sale in the United States of America, its territories and possessions. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Advanced Digital Broadcast Holdings S.A. does not intend to register its securities in the United States of America.
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ADB Holdings S.A. Avenue de Tournay 7 Chambesy Switzerland
ISIN: CH0021194664; Index: SPI, SPIEX, SSCI; Listed: Main Market in SWX Swiss Exchange;
