Trading Statement

RNS Number:1719N
Cyberview Tech Inc
04 February 2008


4 February 2008


CYBERVIEW TECHNOLOGY, INC.


("Cyberview" or the "Company")


Trading update and outlook statement


Cyberview Technology, Inc. ("Cyberview" or the "Company"), a leading provider of
downloadable server-based systems to the gaming industry, announces a trading
update for the year ending 31 December 2007. Announcement of the Company's
preliminary results are expected on 28 March 2008.


Highlights


   * Strong performance of core business.
   * Continued investment in US operations in readiness for commercial launch.
   * Progress in international server-based trials and with US licensing
     applications.
   * Anticipated licensing contracts did not materialise in 2007 resulting in
     a short-term negative effect on trading relative to expectations.
   * Positive outlook for core trading and international operations in 2008.
   * The Group expects to be profitable in 2008.


UK Business


In the first half of 2007 Cyberview supplied 4,100 next generation terminals
("Lara") to Ladbrokes that completed their initial orders of 7,100 terminals. In
Q3 Ladbrokes placed an additional order for a further 1,500 terminals which were
delivered in Q4 and replaced the legacy (analogue based) Amusement With Prize
Machines ("AWP"), previously supplied by another company. The success of the
Lara terminal has enabled Cyberview to increase its footprint with Independent
Bookmakers and cement our reputation in the industry for delivering reliable,
low maintenance machines with exceptional game content.

Sales of our Bet Capture units performed strongly and we achieved our
expectations. Trials of our self-service betting terminals (SSBT's) in UK
Licensed Betting Offices ("LBO") are continuing. The initial results of these
trials have been encouraging and we expect to receive orders in 2008.

On 1 September 2007 significant regulatory changes took place in the UK gaming
industry. The new regulations required the Company to acquire a UK Gaming
License and alter the game content on every one of our terminals installed with
end customers. Cyberview was granted a UK Gaming Licence and remotely effected a
seamless adjustment to our server-based terminals to comply with the new
regulations ensuring that our clients suffered no disruption to their business
despite these critical changes. In addition, Cyberview simultaneously rolled out
an entire new suite of games which is currently generating extremely favourable
results. Our power to respond to these challenges exemplifies not only the
advantages of our system over others in the industry but additionally
demonstrate our enduring commitment to the highest quality customer service.

We are pleased to report that Cyberview's recurring revenue stream from its UK
operations has increased post 1 September 2007 as result of:

    1. the marked increase in the number of transactions as a result of B3
       games being introduces in LBO's;
    2. increase in our installed base; and
    3. positive improvements and amendments which were made to our existing
       contracts.


North America


North America (with over 800,000 gaming machines) is the largest gaming market
in the world and one where server-based technology is widely viewed as the
imminent replacement for the current technology. In anticipation of this vast
market Cyberview has invested over £3.5 million during the year in US market
initiatives including but not limited to significant Intellectual Property lead
initiatives, which the Company has compelling reasons to believe will
conclusively consolidate its future role as a leader of server-based products in
this market. Although the Company has experienced a shortfall in 2007 revenues
anticipated from licensing technology in the US, the Company believes it will
execute such contracts during 2008. The Company anticipates being granted gaming
licenses in key US jurisdictions in Q1 and Q2 of 2008. Once granted, the
Directors believe that the Company will be well positioned to commence
commercial operations in these crucial markets. The Company's strategy in the US
incorporates the provision of turnkey solutions and the licensing or partnering
with major incumbent operators. We are extremely confident that our technical
capabilities, experience of bringing server-based gaming to the market and
prospering US relationships with key customers will strongly position the
Company for entry into the US market during the course of the year.


International


In the Czech Republic Cyberview sold 440 "Lara" terminals in the first half of
2007. Although the initial rollout was slower than anticipated, we are now
seeing considerable and encouraging improvements in not only our recurring
revenues but also in the speed and efficiency of the rollout. Ongoing trials in
Slovakia are progressing well and plans include an increase in the number of
terminals supplied to at least 200 by the end of Q2 2008.

Similarly, we have ongoing trials in Malta with two separate operators where
again we are receiving positive feedback and as a result plan to roll out a
further 120 terminals by the end of Q2 of 2008.

In the second half of the year we received orders for 200 SSBT's for use in the
Spanish and Italian markets and we are currently in the process of delivering
those orders. The trial with Codere in Central and South America, who are
testing the merits of a server-based platform in their markets, are progressing
favourably and the Company is optimistic that there will be a breakthrough in
this market in the near future.

During the year the Company entered into an agreement to supply its server-based
systems into Central Europe. The rollout of 1,000 terminals is subject to
regulatory approval that is expected by mid year.


Patents and IP


The Company continued to invest heavily in its patent portfolio and was granted
further key patents during the year. The Company's portfolio of patents will be
key to its success in being able to penetrate the North American markets, which
is dependent on a protected IP base. Examples of recent developments include
being granted a further patent in the US titled "Modular Entertainment and
Gaming Systems Configured to Consume and Provide Network Services" and the
development of a "Time Gaming" concept based on our patented technology.


Trading


Whilst core business has performed well the impact of not securing one-off
licensing fees in 2007 has meant that our results for the year ended 31 December
2007 will be below expectations. Turnover for the year ending 31 December 2007
is expected to be approximately £26.4 million (2006: £24.5 million) and a
operating loss of approximately £0.2 million (2006: profit £0.1 million) is now
expected before, share-based payment charges (£0.35 million) and exceptional
items. Excluding US operations, which at this time are not generating returns,
the Company would have produced a profit of approximately £3.3 million. Pre
exceptional items and share-based payment charges EBITDA was approximately £1.1
million (2006: £0.8 million).

The cash balance at 31 December 2007 stood at £11.0 million (2006: £15.8
million). Net funds were approximately £10.95 million (2006: £15.7 million). The
reduction in these balances principally reflects the investment in terminals
placed on a participation basis with Independent Bookmakers in the UK and on
trials of £1.2 million and a cash outflow movement in working capital of £3.1
million.


Outlook


Subsequent to being granted licenses in key US jurisdictions the Directors
expect the Company will begin to generate revenues from both terminal sales and
recurring revenue streams.

We expect that the success of the Lara terminal and our B3 content offering will
enable the Company to grow its footprint in the UK market. Our recurring
revenues from this business are expected to be stronger in 2008 as a result of
the full impact of the changes outlined earlier post 1 September 2007 regulatory
changes. The Company is pleased to announce that it has agreed a distribution
agreement with the Independent Bookmakers Association ("IBA") to supply the Lara
terminal to its members. IBA members own over 800 betting shops in the UK and
have plans to grow to over 1,200 by the end of 2008.

The rollout of a further 150 terminals to other LBO operators is planned in Q1
2008 and the Company will continue to aggressively pursue further opportunities
to place terminals with larger LBO operators.

The Company is seeking to enter the AWP market via strategic alliances to
license its server-based technology to existing small and large suppliers with a
presence in sectors such as Pub's, Adult Gaming Centres, Bingo Halls and
Casinos. Negotiations with incumbent suppliers have commenced.

Progress in the various international trials is expected to continue and the
Company will seek to convert these into long term commercial contracts and will
continue to pursue commercial opportunities for server-based technology in other
targeted international markets.

The Company continues to enhance its server-based technology in order to derive
additional revenues from new SBG products which provide its customers greater
profitability and efficiency from the use of its extensive suite of games and
unique software tools such as Remote Diagnostics and Scheduler.

Seamus McGill, Cyberview CEO, said "Our core business has performed in line with
our expectations and improvements in our operational efficiency leave the
Company in a strong position to capitalise on the opportunities currently being
explored. Whilst we have not met our expectations with respect to US licensing
initiatives, I have every confidence that we have built a solid foundation from
which this Company will continue to grow and prosper and that 2008 will be an
exciting year for Cyberview. Being granted licenses in key jurisdictions in the
US will enable us to enter this lucrative market where over 800,000 gaming
machines are currently in operation and generate, what the Board believe will
be, strong and sustainable returns for the Company. I expect 2008 to be a
profitable year for the Group."

For further information, please contact:


Cyberview Technology, Inc.                          020 7761 3000
Mark Nanovich


Hogarth Partnership                                 020 7357 9477
Fiona Noblet


Arbuthnot Securities                                020 7012 2000
James Steel / Paul Vanstone




                      This information is provided by RNS
            The company news service from the London Stock Exchange

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