April 13, 2004


UK's Pixology to supply photo software to Costco

Reuters, 04.13.04, 10:56 AM ET

LONDON, April 13 (Reuters) - British digital-imagery firm Pixology Plc has grabbed a foothold in the world's biggest consumer market, striking a deal with a major U.S. retailer to provide software for photo kiosks.

Pixology said on Tuesday it would supply Seattle-based Costco Wholesale Corp (nasdaq: COST - news - people) with customised software for potentially hundreds of kiosks, where shoppers can insert their digital camera's memory cards into a computer, preview images and order prints. Costco runs 430 retail outlets worldwide.

A spokesman for Pixology said the terms of the deal were confidential, but it would charge Costco a licensing fee between $500 and $1,500 per kiosk. Pixology shares traded at 143.5 pence, up 1.1 percent, at 1130 GMT.

"It has obviously been taken very well by the market," one London trader said.

"It's a shame that the news came out on a quiet day. There is volume of barely 20,000 because most people are still away after the (Easter) holiday."

Costco is the first nationwide U.S. chain to employ Pixology's customised, branded technology.

Costco has annual revenue of over $45 billion and runs a chain of "warehouse clubs" -- retail outlets where, for a fee, its members receive discounts on branded goods, including furniture, hardware and electronics.

"I am happy to see that Costco agree with our view that it is software which drives digital printing, and it is software that creates the competitive advantage for the retailer," Pixology Chief Executive Yuval Yashiv said in a statement.

Pixology recently floated on London's Alternative Investment Market for junior companies.

Forbes.com: UK's Pixology to supply photo software to Costco

Posted by Craig at April 13, 2004 06:16 PM