EATONTOWN, N.J. (July 30, 2007) – Shares for Amedia Networks Inc. (OTCBB: AANI) started off strong today, jumping 22 percent from Friday’s closing price of 36 cents to today’s opening price of 42 cents – and subsequent increase to 45 cents a share.
It looks like the company’s first quarter 2007 revenue results are the reason for the push. According to the company’s statement, Amedia reported $234,400 for the first quarter of 2007, as opposed to the $25,379 for the first quarter of 2006 and a mere $3,120 for the fourth quarter of 2006.
According to the statement, this represents the company’s “first significant revenue achievement.”
“We are extremely proud of the work we have done for Motorola over the past year,” Amedia President and CEO Frank Galuppo said in the statement. “We have proven that we can develop high-quality carrier-class products on time and within budget. With that milestone now met, we plan to move away from capital intensive product manufacturing and focus on continued innovation in the development of a software platform for the rapidly evolving home gateway and home media center markets.”
Galuppo attributed the recent success to the company’s recent restructuring to “put greater focus on building leading-edge software,” such as software that lets Web content to be displayed on a television without the need of a computer.
“The strategy will include the sale of software to both telecom equipment providers and telecom service providers, and will serve as a platform for new and innovative services such as gaming, home monitoring, and consolidation and distribution of personal digital entertainment content within the home,” Galuppo said.
According to Galuppo, this strategy shift resulted in a 50 percent reduction of the company’s expenditures.
“We are refocusing our resources to better align the company with our new strategy that leverages our core strength of software development,” Galuppo added. “We are excited by the prospect of being an innovative player in this emerging technology, particularly in a marketplace that promises to bring Internet TV to tens of millions of homes in the next few years.”
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