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PeerTV optimistic for 2014

31st December 2013 Print

PeerTV, a provider of technology solutions for the OTT (TV over the internet) market and PCB (printed circuit board) production solutions believes it is well placed to capitalise on a solid pipeline of sales prospects built up over 2013.

PeerTV’s subsidiary, Digitek, is now showing steadily increasing sales volumes. During the final quarter of the year, sales have been running at approximately £180,000 per month, an uplift of 150% compared to the same period in 2012. At least three major new customers, including Strauss Water, whose products are marketed under the “Virgin Pure” brand, have come on stream and the company and its facilities have undergone an audit by one of Israel’s leading military contractors. This is expected to result in first orders in Q1 2014.

Digitek management is forecasting rising sales in 2014 and has the capacity to support orders of over £270,000 monthly from within the existing client portfolio with a modest level of capital investment.

Digitek's new power engineering and design department has been an important factor in attracting additional customers. The department has developed an innovative solution enabling the power source to be an integral part of its surface mounted printed circuit boards. This feature provides allows for significant cost savings and is currently believed to be unique in the market, giving Digitek an important competitive advantage.

The Peer TV business has received encouraging feedback from customer testing of its Android based set top boxes, with an update due regarding further orders in late January or February 2014.

Going forward, the marketing of the PeerTV product will target partners who are seeking a largely off the shelf turnkey solution, as management feels this strategy will drive faster sales conversions and allow for further reduction in overhead costs.

Digitek is expected to be cash positive from operations in Q4 2013 and the Company overall is projecting to be cash positive from operations by Q2 2014. However interest payments, the repayment of legacy debts and new capital expenditure for expansion will continue to require the Company to seek external financing in 2014.