RNS Number : 4955U
Blinkx Plc
15 May 2008
15 May 2008
BLINKX PLC ANNOUNCES RESULTS FOR THE SIX MONTHS AND PERIOD ENDED 31 MARCH, 2008
blinkx surpasses First Year Business, Financial and Technology Milestones Set at IPO
blinkx's interim period conference call will be webcast live at www.blinkx.com on 15 May
2008, at 9:30 a.m. GMT/4:30 a.m. EDT/1:30 a.m.PDT.
Cambridge, England and San Francisco, CA - 15 May 2008 - blinkx PLC (BLNX.L), the world's
largest video search engine, today reported
financial results for the period ended 31 March 2008.
Financial Highlights
Period from
6 months 23 April 2007
ended (incorp.) to
31 March 31 March
2008 2008
(unaudited) (unaudited)
$'000 $'000
Revenue 3,593 6,545
Gross profit 2,719 4,903
Loss from operations before demerger / IPO costs (4,553) (6,841)
*
Loss for the period before demerger / IPO costs (3,201) (4,608)
*
Loss for the period (3,201) (16,063)
Loss per share (cents)
Basic (1.15) (6.30)
Adjusted * (1.15) (1.81)
Cash used by operating activities excluding
demerger /IPO costs** (4,371) (6,418)
Cash used by operating activities (4,371) (12,788)
Cash balance as at 31 March 2008 39,436 39,436
* excludes demerger / IPO costs of $11.5m
** excludes demerger / IPO costs. See page 7
Highlights:
* Financial results: revenues and results for Half ending March 2008 from operations
in line with analyst expectations.
* Company ahead of plan in move towards profitability
* Content hours more than tripled since IPO, from 7 million to 26 million
* Daily Video Search run rate of over 5,000,000 per day in March 2008
* 56.1 million unique visitors and 584 million page views through the blinkx network
in March 2008 (source: comScore)
* 175% growth in content partner base to over 350 media organizations, including BBC
iPlayer, CBS, Channel 5, The Guardian and The
Weather Channel
* Addition of top-tier syndication partners, including Ask.com, Real Networks, and
Infospace
* Introduction of four new strategic technology offerings:
* blinkx BBTV
* blinkx beat
* blinkx AdHoc
* Native language search
* Successful execution of campaigns for leading advertising agencies including OMD,
MediaCom, Universal McCann and Initiative Media.
* Collaboration with media futures unit of Publicis Groupe, S.A. on higher-performance
video-based advertising format
* Key hires in Sales and R&D to drive growth
Commenting on the interim results Suranga Chandratillake, founder and CEO of blinkx, said:
"We are pleased to report a strong performance throughout this period; blinkx surpassed
all of the business, financial and technology
goals set at IPO. We signed key strategic partnerships, including Ask.com, InfoSpace and
RealNetworks, that have established blinkx as the
gold standard for TV and video search on the Web; we have substantially expanded our index of
content, adding high-profile media companies
such as CBS, the BBC iPlayer and Channel 5; and according to Hitwise, we have achieved the
fastest visit-share growth in the Online Video
website category with an increase of 625% between March 2007 and March 2008. In addition, we
introduced three strategic product offerings
to our technology portfolio, which will drive distribution and advertising revenue worldwide.
Throughout the year, we have cemented our
position as a leader in online television and video."
Mr. Chandratillake continued: "This is the era of the Rich Media Web: broadband
proliferation has driven dramatic growth in the online
television and video audience -- in fact, traffic to video-sharing sites doubled in 2007.
blinkx has a unique advantage in this new
universe because our technology was built from the ground up to navigate rich media, and
understands video and audio more deeply than any
other solution today, and therefore we're able to evolve strategically and with tremendous
agility to respond to external market trends.
This is a nascent, dynamic industry but we're already seeing important trends emerging.
First, and as expected, the world's leading
brands are showing a distinct reluctance to risk hard won brand values by associating them
with amateur, user-generated content. We are
particularly encouraged by the opportunities around professional content which provide good
and profitable revenue opportunities. We have
found that there is a sweet spot in high-volume, professionally produced content and brand
advertising: it brings together self-selecting
demographic audiences with brands and products relevant to their interests and lifestyles.
There is an enormous amount of this kind of
specialized content on the Web, but typically it is massively dispersed and therefore ideally
suited to blinkx's search technology.
blinkx's strength in this area in 2008 has allowed us to consider a model which will afford us
the possibility of break-even earlier than
anticipated.
blinkx is a catalytic force for television and video on the Internet, and with the
introduction of ground-breaking new solutions like
blinkx Broadband Television and the blinkx AdHoc platform, we are ideally positioned to
capitalize on the tremendous opportunity that exists
in online content, search and advertising."
Financial Highlights
For the second six months period 2008 ending 31 March 2008, revenues totalled $3.6
million. Revenues for the fiscal period, from 23
April (incorporation) ending 31 March 2008, totalled $6.55 million. Gross profit for the six
months ending 31 March 2008 was $2.7 million,
representing a gross margin of 76%. Gross profit for fiscal period 2008 was $4.9 million,
representing a gross margin of 75%. Net loss for
the second half was $3.2 million. Net loss for the fiscal period, before one-off costs
related to the IPO and demerger, was $4.6 million.
Losses including one-off costs related to the demerger and IPO totaled $16.1 million. Loss
per share for the second half was 1.15 cents.
Adjusted loss per share for fiscal period 2008, before one-off costs related to the IPO and
demerger was 1.81 cents. Loss per share
including one-off costs related to the demerger and IPO was 6.30 cents. During the fiscal
period blinkx raised $50.4 million in gross
proceeds from an initial public offering completed on 22 May 2007. Cash balance at 31 March
2008 was $39.4 million.
Customer and Business Developments
Since its IPO in May 2007, strong demand for blinkx's unique, patented search
functionality has established blinkx as the gold standard
in video search, and today it powers many of the most popular sites and portals on the
Internet. Through these strategic partnerships and
increased consumer visibility, visit share increased 625% from March 2007 to March 2008
(Hitwise), and the number of unique visitors reached
a record 56.1 million in March 2008 (comScore). High-profile new syndication customers
include Ask.com, RealNetworks and InfoSpace.
blinkx's content platform also garnered tremendous interest from media companies, and its
roster of top-quality content providers has
grown to over 350 (around 175% growth since IPO), including programming from premier media
companies and broadcasters, such as the BBC
iPlayer, CBS, Channel 5, The Guardian and The Weather Channel.
In addition, blinkx increased its pan-European online television and video reach with the
addition natural language search and content
partnerships with premier broadcasters such as Deutsche Welle, EuroNews and France 24.
blinkx's index of fully searchable online video has now surpassed 26 million hours, more
than tripling in the last 12 months.
Product and Technology Developments
blinkx continued a tradition of building and delivering disruptive, first-to-market
technology, expanding its product portfolio
aggressively during the period, with specific highlights including the launch of blinkx AdHoc
in June 2007, and blinkx Broadband Television
(BBTV) in April 2008.
blinkx BBTV is a significant advance in online television that leverages patented speech
and visual recognition technology to
simultaneously deliver a high-quality television experience over the Internet, and link it to
the universe of information on the Web, adding
dimension and context to the viewer's experience. With hybrid peer-to-peer streaming and a
simple, point-and-click channel interface, blinkx
BBTV delivers a new kind of online television: full-screen, TV-quality and truly immersed in
the Internet.
blinkx AdHoc is the world's first contextually relevant video advertising platform
optimized for the flourishing online video
advertising market, which is predicted to reach $7.2BN by 2012 (Forrester Research). Just as
Google's AdSense transformed advertising on the
Text Web, blinkx's AdHoc platform revolutionizes video advertising by matching compelling,
customized, TV-style ads to relevant content on
the Web. AdHoc leverages blinkx's patented speech-to-text transcription and visual analysis
technology to understand video content more
thoroughly and effectively than any other service today, and can therefore dynamically place
the most pertinent advertising against it.blinkx's AdHoc platform offers content partners and advertisers a unique value proposition --
video advertising which combines the emotive
power of TV promotion, with the relevance and utility of contextual search advertising.
In addition, blinkx announced the availability of blinkx Beat, an innovative desktop
application that allows users to stay up-to-date on
the latest sports, entertainment and breaking news videos from around the Web, without ever
having to search or open up a Web browser.blinkx Beat enables users to create personalized news channels and custom video walls to watch
regularly updated videos about topics of
their choice.
Company Developments
On the operational front, blinkx aggressively expanded headcount to 52 employees and
extended its bases of operations to include New
York, Chicago and Los Angeles, bringing on board key strategic hires to support new
engineering initiatives and drive business development.The company continues to attract top engineers and specialists in content acquisition,
distribution and online video advertising who have
proven track records of success, and a wealth of contacts in the media industry.
During the period blinkx and its technological achievements were honoured with a number of
awards. blinkx.com was named one of Time
Magazine's 50 Best Websites for a second time in 2007, and was included in The Observer's "Top
10 in Science and Innovation". The company
was also recognized as one of Business 2.0's "Disruptors: Companies that Will Change the
World".
About blinkx PLC
blinkx (London AIM: BLNX) is the world's most comprehensive video search engine. Today,
blinkx has indexed more than 26 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
For further information please contact:
Financial Media Contacts Analyst and Investor Contact AIM Nominated Adviser and
Broker
Edward Bridges/Haya Chelhot Matthew Service, CFO Charles Lytle
Financial Dynamics blinkx PLC Citigroup Global Markets
Tel: (UK) 020 7831 3113 Tel: (US) 415 615 1513
BLINKX PLC
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
Results for the period from 23 April 2007 to 31 March 2008
(in thousands, except per share amounts)
Period from
6 months 23 April 2007
ended (incorp.) to
31 March 31 March
2008 2008
(unaudited) (unaudited)
$'000 $'000
Revenue: continuing operations 3,593 6,545
Cost of revenue (874) (1,642)
Gross profit 2,719 4,903
Operating expenses
Research and development 1,858 3,171
Sales and marketing 4,707 7,273
Administrative expenses 707 1,300
Loss from operations before demerger / IPO (4,553) (6,841)
costs*
Demerger / IPO costs - 11,455
Loss from operations (4,553) (18,296)
Investment revenues 1,102 1,983
Loss before taxation (3,451) (16,313)
Tax 250 250
Loss for the period attributable to equity
holders of (3,201) (4,608)
the parent before demerger / IPO costs *
Loss for the period attributable to equity
holders (3,201) (16,063)
of the parent
Loss per share (cents) Cents Cents
Basic and diluted (1.15) (6.30)
Adjusted* (1.15) (1.81)
* Excludes demerger / IPO costs of $11.455
million
BLINKX PLC
CONSOLIDATED BALANCE SHEET (UNAUDITED)
As at 31 March 2008
(in thousands)
As at
31 March 2008
(unaudited)
$'000
ASSETS
Non-current assets
Intangibles 5
Property, plant and equipment 447
452
Current assets
Trade receivables 1,816
Other receivables 1,585
Cash and cash equivalents 39,436
42,837
Total assets 43,289
Current liabilities
Trade and other payables (2,022)
Total liabilities (2,022)
Net assets 41,267
Shareholders' equity
Share capital 5,483
Share premium 49,126
Stock compensation reserve 6,429
Currency translation reserve 516
Merger reserve (4,323)
Retained earnings (15,964)
Total Equity 41,267
BLINKX PLC
CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)
Results for period from 23 April 2007 to 31 March 2008
(in thousands)
Period from
6 months 23 April 2007
ended (incorp.) to
31 March 31 March
2008 2008
(unaudited) (unaudited)
$'000 $'000
CASH FLOWS FROM OPERATING ACTIVITIES
Loss from on-going operation * (4,553) (6,841)
Demerger & float costs - (11,455)
Loss from operations (4,553) (18,296)
Adjustments for:
Depreciation and amortization 117 263
Share based compensation 825 6,501
Foreign exchange gains (120) (123)
Operating cash flows before movements in working (3,731) (11,655)
capital
Changes in operating assets and liabilities:
Increase in trade and other receivables (489) (3,155)
(Decrease) / increase in trade and other (151) 2,022
payables
Net cash used in operating activities (4,371) (12,788)
Non recurring share based compensation - (5,085)
Demerger / IPO costs - 11,455
Net cash used by on-going operating activities* (4,371) (6,418)
CASH FLOWS FROM INVESTMENT ACTIVITIES
Interest received 1,284 1,983
Purchase of property, plant and equipment (84) (715)
Net cash generated by investment activities 1,200 1,268
CASHFLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of shares - 50,384
Net cash generated by financing activities - 50,384
Net (decrease) / increase in cash and cash (3,171) 38,864
equivalents
Beginning cash and cash equivalents 43,610 -
Effect of foreign exchange on cash and cash (1,003) 572
equivalents
Ending cash and cash equivalents 39,436 39,436
* Excludes demerger / IPO costs of $11.455 million
BLINKX PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
For the period from 23 April 2007 to 31 March 2008
(in thousands)
Ordinary Redeemable Stock
share share Share compensation
capital capital Premium reserve Sub-total
$'000 $'000 $'000 $'000 $'000
Balance as at 23 April 2007 - - - - -
Issue of shares 5,483 100 49,126 - 54,709
Capital contribution - - - - -
Shares redeemed - (100) - - (100)
Current period losses - - - - -
Exchange differences on - - - - -
translation
Share based payments - - - 6,429 6,429
Balance as at 31 March 2008 5,483 - 49,126 6,429 61,038
sub-total Currency Merger Retained
forwarded translation reserve earnings Total
$'000 $'000 $'000 $'000 $'000
Balance as at 23 April 2007 - - - - -
Issue of shares 54,709 - (4,323) - 50,386
Capital contribution - - - 99 99
Shares redeemed (100) - - - (100)
Current period losses - - - (16,063) (16,063)
Exchange differences on - 516 - - 516
translation
Share based payments 6,429 - - - 6,429
Balance as at 31 March 2008 61,038 516 (4,323) (15,964) 41,267
BLINKX PLC
NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
1. Basis of preparation
The financial information set out in the announcement does not constitute the company's
statutory accounts for the period ended 31 March
2008, within the meaning of Section 240 of the Companies Act 1985. The audit of the statutory
accounts for the period ended 31 March 2008 is
not yet complete. These accounts will be finalized on the basis of the financial information
presented by the directors in this preliminary
announcement and will be delivered to the Registrar of Companies following the company's
annual general meeting.
The information for the six months ended 31 March 2008, which is unaudited, has been
prepared by subtracting the results for the period
to 30 September 2007, which were included in the company's interim announcement, from the
results for the period from 23 April 2007 to 31
March 2008.
2. Share-based payments
Included within operating expenses are the following amounts in respect of share based
payments:
Period from
6 months 23 April 2007
ended (incorp.) to
31 March 31 March
2008 2008
(unaudited) (unaudited)
$'000 $'000
Sales and marketing 318 546
Research & development 449 769
Administrative expenses 58 100
Demerger / IPO - 5,233
825 6,648
4. Taxation
An income tax credit of $250,000 is reflected in the income statement in relation to
research and development tax credits.
5. Loss per share
The loss per ordinary share and diluted loss per share are equal because share options are
only included in the calculation of diluted
earnings per share if their issue would decrease the net profit per share or increase the net
loss per share. The calculation is based on
information in the table shown below.
Period from
6 months 23 April 2007
ended (incorp.) to
31 March 31 March
2008 2008
(unaudited) (unaudited)
$'000 $'000
Earnings
Loss (used in calculation of basic and diluted (3,201) (16,063)
loss per share)
Loss for the period excluding demerger / IPO (3,201) (4,608)
costs of $11,455k
(used in calculation of adjusted loss per share)
Number of shares
Weighted average number of shares since 23 April 277,918,826 254,952,682
2007
6. Share capital
Major movements in share capital in the period include the issuance of 277,470,635
ordinary shares in relation to the demerger from
Autonomy Corporation plc and equity financing in May 2007. In addition as part of the demerger
process one redeemable share was issued in
April 2007 which was subsequently redeemed in May 2007 prior to the demerger. Other issuances
of shares relate to the exercise of employee
share options.
7. Related party transactions
There are no related party transactions.
8. De-merger from Autonomy Corporation plc
The demerger of the blinkx business from Autonomy Corporation plc and its affiliates was
completed on 21 May 2007. This was followed by
an IPO on the AIM market of the London Stock Exchange.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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