Troubled market data technology vendor CMS WebView is reporting a near doubling of losses and a 37% drop in turnover for the six months to 30 June 2006 after failing yet again to secure any new orders for its TDI ticker plant product.
London-based CMS is reporting first half losses before tax of £569,000, compared to £287,000 a year ago. This includes a one-off cost of £268,000 relating to rationalisation.
Turnover fell from £485,000 in H1 2005 to £306,000 this year. However, this includes £145,000 which is derived from its data feed business which was sold off to Tenfore Systems in May.
After failing to win sales for TDI in 2005, the company said in May that it was looking to cut more costs and had also terminated contracts with a number of suppliers. The company says it is now looking to "explore other new business opportunities" following its corporate restructuring.
In a bid to generate TDI sales, the vendor says it will now switch to selling the intellectual property (IP) for TDI to firms. The new model will enable CMS to negotiate individual IP licences, and enables clients to retain control of data applications and to develop the software in-house.
CMS says the new initiative is expected "to have the benefit of removing a substantial barrier to any potential TDI sale, which is the fact that almost all large organisations prefer not to depend on smaller suppliers for mission critical functions".
Although this marketing model was implemented in July, the vendor still hasn't secured any new orders but says it will continue with this new marketing approach until the end of 2006 before reviewing its effectiveness.
Earlier this year the vendor also cancelled its support contract with CME and CBOT. However in today's statement, Keith Young, chairman, CMS, says he had expected to be report a deal to extend CBOT's licence rights to TDI for use in the Joint Asian Derivatives Exchange (Jade) – a joint venture between the CBOT and the Singapore Exchange that went live last week.
But Young says discussions have been protracted and have still to reach a conclusion. CMS has now submitted a document to the CBOT which it says reflected "a recent oral agreement" concerning the licensing deal, but as yet the issue has not been resolved.
In April this year the vendor said discussions with a potential bidder for the company had been terminated. This was the second time in a year that takeover talks for CMS had fallen through.
CMS shares were down -18.10% to 1.13 pence in mid-morning trading.