Restructured digital media software and services group ANT, brought to AIM at 126p in 2005, has scurried into 2008 on a high.

Guided by chief executive Simon Woodward, ANT’s technology enables broadcasters, telco operators and cable companies to deliver digital content to their consumers. Used in set-top boxes, TVs and other digital devices, customers for the technology include Orange, Samsung and Cisco, as well as China’s biggest set-top box maker, Coship, which recently licensed the group’s ‘Galio’ browser for use in its latest IPTV set-top boxes.

Positive trends experienced towards the end of a transitional 2007 carried over into the first half of 2008 at ANT. Interim results to June revealed a 61% increase in sales to £1.6m, while the loss before tax was pared back by 50% to just over £1m.

Gross margin expansion to 82% (2007: 77%) reflected growth in licence and royalty revenue, while ANT enjoyed a 90% surge in unit shipments to 1.51m, equating to 75% of the total units shipped in 2007, with ANT seeing a step change in new licences.

Woodward insists that the IPTV market is now experiencing meaningful growth, commenting that ‘we are seeing a major increase in demand for digital products based on our technologies, driven by a growing demand within the IPTV and broader digital media markets’.

Moving towards profitability, ANT reported half-time cash of £5.9m, or 24p per share. Significantly, cash alone constitutes 65% of the company’s lowly market valuation, meaning that all the IP and growth within the business is going cheap. On that basis, ANT shares are worthy of a speculation.

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ANT	AIM	£6.68m	27.50p	0.00p
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