ZOO Digital Group provides software and related services that support the authoring, re-purposing and distribution of creative media. ZOO’s products form an integrated suite of web-based and desktop applications for audio/visual content and printed materials, adapting these media for different languages, formats and delivery mechanisms.
ZOO’s services enable quicker and more cost effective processes across a wide range of applications and formats, including packaging, printed materials, DVD, Blu-ray Disc, video on demand, electronic sell-through, broadcast, music and electronic books.
Underlying earnings were US$1 million and operating profits US$0.2 million in the six months to March. That compared respectively to losses of US$0.4 million and US$0.9 million in the first half when DVD sales collapsed.
ZOO supplies cloud-based software to edit and add to films, TV programmes and other audio/visual and print content. The major Hollywood studios are among its largest customers.
As a result of the better second half, the creative media group now expects to report full year underlying earnings of US$0.6 million (2011: US$2.5 million) and an operating loss of US$0.8 million (2011: operating profit of US$1.5 million).
Overall, ZOO said trading was as it expected in its second half. Sales for the year will be about US$11.2 million (2011: US$13.8 million), which includes an increase in the number of titles prepared using ZOO's Blu-ray and eBook platforms.
Measures to cut costs and an increase in the proportion of sales derived from ZOO's more advanced toolkits helped profits, Zoo added.
Stuart Green, chief executive, said: "We are pleased to report a stronger second half of the financial year. 2011 was a very difficult year for the home entertainment industry due to the significant changes that have taken place in consumer markets.
The innovation and diversification within our business has helped ZOO to broaden its offering into complementary markets and we believe that the business is in a strong position to take advantage of growth in a number of areas."
The company had a gross cash balance of US$1.2 million at end March.