BLINKX PLC TRADING UPDATE
London, England and San Francisco, CA. 1 October 2014 - blinkx plc ("blinkx" or "the Company") today updates the market on its expected performance for the first half Financial Year 2015 covering the period from 1 April 2014 to 30 September 2014 ("H12015" or "the Period").
As noted in early July, revenue trends slowed considerably in the latter half of the first quarter. These trends continued into the second quarter, amplifying the effects of the seasonally slower summer months. The preliminary first half results, based on unaudited pre-close figures that are subject to change, are expected to be:
· H1 2015 revenues of $102 to $104M
· H1 2015 adjusted* EBITDA of approximately break-even
· Cash and cash equivalents of approximately $115M at the end of the Period
blinkx has seen sequential month-on-month growth since July, and management believes the Company has reached an inflection point. Mobile remains a high-priority area for operational and strategic investments and is expected to contribute approximately 20% of revenues during the Period.
"The past six months have been transitional for blinkx, which operates in an evolving industry moving toward emerging mobile models. We are well positioned with high-growth advertising formats that are expected to contribute an increasing percentage of revenues," said S. Brian Mukherjee, CEO of blinkx. "We have taken decisive steps to fortify our business model and realign our resources to target growing areas of the sector, and we feel confident in our prospects going forward."
The Company will provide a more detailed update and outlook when it publishes its interim results on 11 November 2014.
Non-GAAP Measures
· This press release contains references to adjusted* EBITDA. This financial measure is not a measure that has any standardized meaning prescribed by IFRS and is therefore referred to as a non-GAAP measure. The non-GAAP measures used by blinkx may not be comparable to similar measures used by other companies.
· Adjusted* EBITDA is defined as profit for the year attributable to equity holders of the parent before interest, taxes, depreciation and amortization, stock based compensation expense, and acquisition and exceptional costs. Management believes that this measure is a useful supplemental metric as it provides an indication of the results generated by the Company's principal business activities prior to consideration of how the results are impacted by one time exceptional charges, how the results are taxed in various jurisdictions, or how the results are affected by the accounting standards associated with the Group's stock based compensation plan.
For further information please contact:
Analyst and Investor Contact Dan Slivjanovski blinkx plc
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Financial Media Contacts Edward Bridges/Charles Palmer FTI Consulting (UK) 020 3727 1000
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NOMAD and Joint Broker for blinkx plc Charles Lytle/Christopher Wren Citigroup Global Markets Limited (UK) 020 7986 9756 |
Joint Broker for blinkx plc Lorna Tilbian/Mark Lander/Nick Westlake Numis Securities Limited (UK) 020 7260 1000
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