Interactive graphics software company Pineapplehead delivered its end of fiscal year results last week and flagged plans to market "Insert" advertising technology.
Pineapplehead intends to secure the licence for technology developed by software company Prinston Video Image, which allows advertising to be superimposed on sports television programs - effectively doing away with the need for billboards or painting the field.
Pineapplehead intends to develop applications for the technology, which company directors claim can be used to update statistics "painted on" the TV image, rather than overlaid 2D graphics that are used today.
"The opportunity for advertising is enormous," claims Peter Lamb, Pineapplehead cofounder and director of technology.
The technology has been trialled in the US and Pineapplehead is in negotiations with a number of major US broadcasting companies including ESPN, CBS and Turner Broadcasting for its applications.
The results were announced at Pineapplehead's annual general meeting last week. At a time when tech stocks appear speculative at best for the average punter, Pineapplehead's AGM was as much an explanation of Pineapplehead's business, followed by a product demonstration, as it was a formal shareholder's meeting.
Pineapplehead and software distribution subsidiary Lakovision posted $6.03 million in revenues for its fiscal year ending June 30, 2000. This represented a growth of 43 per cent compared to revenues of $4.2 million in financial 1999. Despite its revenue growth, R&D expenses saw the company post an operating loss of $161,885.
Lakovision was the mainstay for the company remaining cashflow positive, while Pineapplehead invested $210,605 in R&D of interactive television graphics and sports statistics software.
Pineapplehead's business model is designed to use its profitable distribution arm to fund its future R&D. "This way we're not burning through our IPO funds," Lamb told ARN.
The company did not pay a dividend.