Engin Limited - History

History

In May 2007 BBY research recommended investors buy Engin shares (listed on the ASX) with a valuation of A$0.25 per share. The recommendation said "ENG is a well managed, emerging small cap business. It has an established presence in the potentially high growth VOIP market, and clear market leadership in this new sector". The 'well managed, emerging small business' is now under the helm of a new CEO after the departure of Illka Tales in the top job, as well as a number of other redundancies.

In 2007 the company launched new pricing and product initiatives, including offering free internet phones and "voice boxes" for customers who sign up to a contract. In June 2007 Engin announced a move to a "triple-play" offering, selling naked DSL services that would be used to deliver voice, internet and, from next year, IP-TV content. Engin also have the exclusive retail distribution and marketing rights for TiVo.

In February 2008, Engin decided to sell off the exclusive rights of TiVo to lower the financial responsibility placed on it under that exclusivity. In March 2008, Engin offered a new share deal with $8.4m to be sought through offering 3 million shares. 45% of this was taken by existing share holders and the underwriter bought the remaining In April 2008, the Seven Network Limited increased its share in Engin to 58.35% Resellers of selected Engin products include Harvey Norman and Dick Smith Electronics and Tandy.

In October 2008, Engin launched an ADSL2+ service, offering both naked and bundled options. Their ability to prioritize Engin VoIP traffic (over regular data) running over an Engin DSL circuit is a unique differentiator, and has gone a long way to raise the quality of VoIP for users on an Engin DSL service thus substantially reducing the need for a "backup" PSTN line.