LONDON (ShareCast) - Investment in new products and a refocusing of the business have forced online media production service and software firm Zoo Digital into the red.

Zoo Digital blamed major investment in new subtitling and dubbing products for Hollywood film studios for an underlying annual earnings loss of $400,000 against a profit of $700,000 a year ago.

At the half-year, three of the six major Hollywood studios were using Zoo's subtitling production and management system and that increased to five, as well as a growing number of second tier film and TV makers, shortly after the end of the financial year.

The group also said it was moving from traditional software licensing and a heavy dependence on one major customer to a business model where a range of different customers use its software and services.

Chairman Roger Jeynes said: "Revenues in the second half of the year were stronger than in the first half with a total for the year of $9.6m, which reflects the fact that monthly billings increased through the second half.

"I am pleased to report that this trend has continued into the new financial year."

Shares in Zoo fell 1.1p, or 12.2%, to 8.1p at 13:27 in London.

PW

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