www.amphionplc.com
Amphion builds shareholder value in high growth companies in the medical and technology sectors, by using a focused, hands-on company building approach, based on decades of experience in both the US and UK.
Amphion has a significant shareholding in 8 Partner Companies developing proven technologies targeting substantial commercial marketplaces, each in excess of $1 billion. Each Partner Company is chosen with the goal of achieving an exit valuation in excess of $100 million.
Amphion Innovations’ shares shoot up again after firm swings into profit
Shares in technology commercialisation company Amphion Innovations (LON:AMP)have seen further large gains this morning after the firm’s revenue and profitability were boosted during its first half thanks to an improved performance from its DataTern intellectual property licensing business.
By 9:07am Amphion’s shares were up 37 per cent at 5.65 pence each. During the previous 10 trading days, Amphion’s shares more than doubled their price to more than four pence each.
Amphion added that the DataTern subsidiary has also been making progress with its patent disputes with a number of companies regarding its next-generation business software.
Amphion expects to report revenue of US$2.6 million for the six months to 30 June, compared to US$1.6 million for H1 2010. The firm said the increase in revenue is mainly due to the improved performance of DataTern, which increased revenue from US$700,000 during H1 2010 to US£$2 million in H1 2011.
Amphion’s profitability benefited from this increase in revenue, with its operating loss reducing to US$130,000 from US$1.1 million in H1 2010. Admin expenses were also reduced, to US$1.9 million from US$2.4 million in H1 2010.
Meanwhile, the firm said it expected to have a net profit of US$190,000 for H1 2011, compared to a loss of US$2.9 million for H1 2010.
The firm's net asset value stood at US$29.6 million (some 22 US cents per share) at 30 June, up from US$29.2 million six months earlier.
Amphion also reported that its DataTern subsidiary has taken “concrete steps” to combat actions filed against it by Microsoft and SAP in April concerning its ‘402 and ‘502 patents. The two business software firms assert that these patents are invalid and not infringed by companies that DataTern has itself taken action against.
DataTern has retained law firm McCarter & English, and has filed a motion in New York to dismiss, or at least stay, the actions by Microsoft and SAP, while it also intends to file an application in the US Patent and Trademark Office to re-examine the ‘402 patent. The ‘502 patent has already successfully completed re-examination by the USPTO with all 18 original claims intact and 26 new claims added.
DataTern’s patent-protected offerings include ObjectSpark Technologies – which can be used across a range of industries to allow business users to develop their own customised data service layers. The business provides non-exclusive licences for its technologies on what it describes as reasonable and non-discriminatory terms.
In January this year, DataTern announced it had settled five patent infringement lawsuits involving the ‘402 and ‘502 patents, generating total revenues of US$1.125 million.
Amphion Innovations starts and builds companies based on proprietary (patented) technologies developed by universities and academic institutions in the UK and US. Each one of the companies the firm has chosen to invest in and develop was carefully selected to address established markets worth in excess of US$1 billion each, and Amphion also believes that many of them can achieve exit values of more than US$100 million each.
Amphion said that the market for financing of private emerging technology and med-tech companies remains “extremely challenging”. However, it said that provided its IP programme continues to make progress its need for capital at the parent company level should remain relatively small.
Amphion expects to announce its complete interim results on 23 September.
