FMDAY up,
Futuremedia Plc Revises Potential Revenue Upwards
Wednesday December 3, 6:08 am ET
Company Confirms Orders From Royal Mail "Learning for All(TM)" Contract Now Stand at US$ 27.1 Million (GBP 16.0 Million)
BRIGHTON, ENGLAND--(MARKET WIRE)--Dec 3, 2003 -- E-Learning solutions provider Futuremedia Plc (NasdaqNM:FMDAY - News) today announced that it has received US$27.1 million (GBP16.0 million) in orders since the launch in early November of its Learning For All™ programme for Royal Mail employees.
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When the Company gave an update on the Royal Mail contract on November 24, 2003, it estimated that the potential revenue from the contract would be in the range of US$12.0 million (GBP 7.5 million) to US$15.0 million (GBP 9.4 million) over three years. The Company is now revising its estimate upwards, to be in the range of US$32 million (GBP20 million) to US$35 million (GBP22 million) for the current promotional campaign ending on the December 23, 2003.
The Company's Learning For All™ contract with Royal Mail is for a term of three years. The Company plans to promote the programme through a total of six campaigns. While the uptake in this initial promotional campaign represents a positive indicator with respect to the overall success of the three-year programme, the Company expects the level of uptake in future promotional campaigns to be lower.
The Company's ability to launch future promotions is subject to the terms of the contract and will depend on, among other factors, the success of the programme. The success of any future promotions will in turn depend on, among other factors, the future level of uptake of the programme by Royal Mail employees. At this time the Company cannot give any assurances or guarantees about the likelihood of there being future promotional campaigns, the future success of the such campaigns, or the future financial impact of the full contract on the Company.
"It is very gratifying to see that the initial uptake of the Learning For All™ programme by Royal Mail employees has again exceeded our expectations. When we originally announced the contract, we were conservative about our expectations because the success of the programme is dependent on acceptance by individual Royal Mail employees and we could not be sure about how they would react," said Mats Johansson, CEO of Futuremedia. "This further increases the likelihood that other large organisations and companies will see the success of Royal Mail's Learning For All™ as a great example of how to give incentives to staff by extending their e-learning capabilities, and we hope, thereby prompting them to implement Learning For All™ programmes as well." |
