Blinkx Plc Trading Update (1128T)

TIDMBLNX

RNS Number : 1128T

Blinkx Plc

01 October 2014

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        Financial Media Contacts 
  Dan Slivjanovski                    Edward Bridges/Charles Palmer 
  blinkx plc                          FTI Consulting 
                                      (UK) 020 3727 1000 
 NOMAD and Joint Broker for blinkx   Joint Broker for blinkx plc 
  plc                                 Lorna Tilbian/Mark Lander/Nick 
  Charles Lytle/Christopher Wren      Westlake 
  Citigroup Global Markets Limited    Numis Securities Limited 
  (UK) 020 7986 9756                  (UK) 020 7260 1000 
 

About blinkx

blinkx (LSE AIM: BLNX) is an Internet media company that connects consumers and brands through premium content online. Founded in the UK in 2004, blinkx pioneered Internet Video Search using its patented COncept Recognition Engine (CORE). This technology leverages speech recognition, text and image analysis to deeply understand the meaning and context of video content to generate improved search relevancy for consumers and a brand safe environment for advertisers. Today, blinkx is a broad digital media technology, distribution and monetization platform that connects consumers, advertisers and content across four screens. Through its partnerships with hundreds of media companies, including ABC, NBC, Conde Nast, Reuters and Bloomberg, blinkx has indexed and search enabled millions of hours of video content. blinkx powers video search, discovery or monetization on thousands of online properties including Lycos, ABC, CBS and Fox Sports. blinkx is headquartered in San Francisco, California with 15 offices worldwide. For more information please visit www.blinkx.com.

This information is provided by RNS

The company news service from the London Stock Exchange

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