SAN FRANCISCO, CALIF.— April 10, 2012— blinkx, the world’s largest and most advanced video search engine, today announces a trading update for the year ended 31 March 2012. The Company expects to report revenues for the full year of approximately $114m, representing a year-on-year increase of approximately 72% and behind analyst consensus of $121.5m. The company expects to report an operating profit, before one-time costs and amortization of purchased intangibles, slightly ahead of analyst consensus of $10.3m. Gross Margin for the year was approximately 53%. The company’s cash balance at year end was $38.4m.
Operating cash flow for the period, both before one-time costs and also on an absolute basis, is expected to exceed analyst consensus. One-time costs for FY 2012 are expected to be approximately $5m and amortization of purchased intangibles is expected to be approximately $4m. The company expects to report an IFRS operating profit, after one-time costs and amortization of purchased intangibles, above analyst consensus of $1.3m for the period.
Commenting on the preliminary results Suranga Chandratillake, founder and CEO of blinkx, said: “blinkx’s revenues are up 72% this year, surpassing the $100 million mark. We believe this is a significant achievement. Growth across the business has been strong, and whilst it is disappointing to deliver revenues a little below expectations it is worth noting that in a challenging economic climate, blinkx outperformed the aggressive growth of the online video advertising industry by over 80%. We are confident in our position in the market and the progress we have made this year, and are excited about the opportunities that lie before us.”
The company expects to announce its results for the full year on 18 May 2012.
The above represent preliminary summary results based on blinkx's expectations at the time of publication of this announcement. These results may be subject to revision as part of the analysis process and, at this stage, should be taken as indicative estimates only. Preliminary summary results are provided as an aid to investors based on information available at the time of publication. Full results, including income statement, balance sheet, statement of changes in equity, cash flow statement and related notes and other segmental information will be published in due course, which is expected to be on 18 May 2012. All results, including those set forth above, are subject to quarterly financial review by blinkx's independent auditors, and are considered preliminary and subject to change until publication of any such review or audit.
blinkx plc +44 (0)1223 488500
Suranga Chandratillake, Founder and CEO +1 (415) 655 1450
Frances Smith, Company Secretary
Citigroup Global Markets Ltd +44 (0)207 986 4000
(NOMAD and Broker for blinkx plc)
FTI Consulting +44 (0)20 7831 3113
blinkx plc (LSE AIM: BLNX) is the world's largest and most advanced video search engine. Today, blinkx has indexed at least 35 million hours of audio, video, viral and TV content, and made it fully searchable and available on demand. blinkx's founders set out to solve a significant challenge – as TV and user-generated content on the Web explode, keyword-based search technologies only scratch the surface. blinkx's patented search technologies listen to – and even see – the Web, helping users enjoy a breadth and accuracy of search results not available elsewhere. In addition, blinkx powers the video search for many of the world's most frequented sites. blinkx is based in San Francisco and London. More information is available at www.blinkx.com.
This announcement has been issued by and is the sole responsibility of blinkx plc (the "Company"). Citigroup Global Markets Ltd (“Citi”), which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting for the Company and for no-one else in relation to this announcement, and will not be responsible to any other person for providing the protections afforded to its clients nor for providing advice in connection with the announcement. No representation or warranty, express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by the Company, Citi or by any of their respective affiliates or agents as to or in relation to, the accuracy or completeness of this announcement or any other written or oral information made available to or publicly available to any interested party or its advisers, and any liability therefore is expressly disclaimed.
This announcement contains (or may contain) certain forward-looking statements with respect to certain of blinkx plans and its current goals and expectations relating to its future financial condition and performance and which involve a number of risks and uncertainties. blinkx cautions readers that no forward-looking statement is a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as ‘aim’, ‘anticipate’, ‘target’, ‘expect’, ‘estimate’, ‘intend’, ‘plan’, ‘goal’, ‘believe’, or other words of similar meaning. Examples of forward-looking statements include, among others, statements regarding blinkx future financial position, income growth, impairment charges, business strategy, projected levels of growth in its markets, projected costs, estimates of capital expenditure, and plans and objectives for future operations of blinkx and other statements that are not historical fact.
By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, including, but not limited to, UK domestic and global economic and business conditions, the effects of continued volatility in credit markets, market-related risks such as changes in interest rates and exchange rates, the policies and actions of governmental and regulatory authorities, changes in legislation, the further development of standards and interpretations under International Financial Reporting Standards ("IFRS") applicable to past, current and future periods, evolving practices with regard to the interpretation and application of standards under IFRS, the outcome of pending and future litigation, the success of future acquisitions and other strategic transactions and the impact of competition — a number of which factors are beyond blinkx control. As a result, blinkx actual future results may differ materially from the plans, goals, and expectations set forth in blinkx forward-looking statements. Any forward-looking statements made herein by or on behalf of blinkx speak only as of the date they are made. Except as required by the FSA, AIM or applicable law, blinkx expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this announcement to reflect any changes in blinkx expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.