Israeli deal boost for internet telecoms provider

The Harrogate-based company will supply the Israeli firm with its patented, internet-based Push To Talk technology, which allows businesses to communicate without relying on mobile phones.

Mobile Tornado also anounced a reduction in annual losses from £2.7m to £1.6m in the year to December 31, 2010.

The group’s shares rose 0.9p to 10.75p.

Delivery of the first phase of the Israeli contract will involve a 10,000 user system.

Mobile Tornado’s chief executive Jeremy Fenn said: “I am delighted to secure this deal with one of the leading and most ambitious operators in the Israeli market.

“Israel is one of the few markets where Push To Talk has been established with over 500,000 users across the current operators.

“We are engaged with an operator that has previously not offered PTT, but now sees the proposition as a key offering to their enterprise customers. We look forward to helping them penetrate the market and to establishing a healthy market share.”

Annual revenues at £1.4m were below the previous year’s £2.3m, but last year’s figures were boosted by the £1.9m sale of BB3G phones to InTechnology, the group’s UK partner.

If this deal is excluded, 2010 annual sales rose by over 300 per cent.

Mobile Tornado’s chairman Peter Wilkinson said there is increasing interest in Push to Talk as a communication platform, particularly in developing countries.

“We have been approached by a number of potential partners who are well placed to address significant market opportunities,” he said.

In January the group signed an exclusive agreement with NECO, a supplier of emergency, safety and security products, to deliver Push to Talk mobile communication services in South Africa.

Mr Wilkinson said early talks with potential customers, including South African emergency services and security companies, suggest the partnership will fulfil its ambitious plans.

In a separate move Jorge Pinievsky, one of the founders of the company, was appointed chief operating officer.