London-listed Emblaze Systems (LSE: BLZ) reported today that its revenue sank 84% in the first half of 2002, as telecom companies slashed spending on infrastructure.
Givatayim-based Emblaze, a maker of streaming media solutions for wireless networks, said revenue in the first half of the year totaled just $2.98 million, compared with revenue of $18.6 million in the same period last year.
Net loss in the first half of 2002 widened three-fold, reaching $22.1 million or $0.16 per share. This compares with a loss of $6.25 million, or $0.05 per share in the prior year period.
In its report, Emblaze did not offer new guidance, saying predicting an upturn was a very difficult task for just about every company operating in the sector.
Emblaze CEO Eli Reifman said, “We feel it is unrealistic to see revenue generation alone as an indication of our success, particularly as the entire market is impacted in the same way by the slowdown in capital expenditure by telecom companies. At such times our tactical direction is to maintain our position and business relationships until the point the market returns.”
"Although we receive indications that the market should begin to come back in the next couple of quarters, our board is unanimous in its belief that attempting to guide the market towards a potential recovery timeframe is not realistic and counterproductive. Our confidence and drive for success remains undiminished," Reifman added.
Emblaze reported that its balance sheet remained strong, with $328 million of cash portfolio and no debt. The company said it was continuing to maintain an efficient cost control program and remained confident in its ability to see through the global market downturn.
Published by Globes [online] - www.globes.co.il - on 26 September, 2002