blinkx plc Trading Update
SAN FRANCISCO, CALIF.— April 8, 2011 — blinkx, the world’s largest and most advanced video search engine, today announces a trading update for the year ended 31 March 2011. Following good interim results, trading for the second half of the financial year has continued to be strong. The Company expects to report revenues greater than US$65 million, an increase of over 90% from last year (ahead of analyst expectations), and to report an operating profit above the current analyst consensus estimates of US$6.7m (after share based compensation charges) for the financial year ended 31 March 2011 before one-time costs associated with the acquisition of Burst Media Corporation.
The Company also announces today that it has entered into a definitive agreement with Burst Media Corporation (“Burst”) pursuant to which blinkx will acquire the entire issued and to be issued shares of common stock of Burst for an aggregate consideration of US$30 million to be satisfied by the issue of new blinkx shares and, for Non-Accredited Investors, in cash. Further details can be found in the related announcement released today.
The Company has cash of approximately $52.8m, an increase from the $17m reported for the half year ended 30 September 2010. Cash consideration for the Burst Media Corporation acquisition is not expected to exceed $4.5m.
The company expects to announce its results for the year ended 31 March 2011 on 18 May 2011.
Suranga Chandratillake, founder and CEO, blinkx, commented, “We have continued to see strong momentum in the business during the course of the year with a revenue increase of over 90% on the prior year. This strong performance was driven by increased traffic on the blinkx site and the continued success of our advertising platform, AdHoc, in attracting new and repeat advertising customers such as Microsoft and Toyota. During the year we have continued to develop our cross-platform proposition, including the launch of blinkx mobile and our Application Programming Interface for the connected TV space.
Separately today we have announced the acquisition of Burst. This is an exciting development which will bring blinkx’s 35 million hours of online video and TV to Burst’s audience of over 130 million unique users.”
+44 (0)1223 488500
Suranga Chandratillake, Founder and CEO
Frances Smith, Company Secretary
+1 (415) 655 1450
Citigroup Global Markets Ltd
(NOMAD and Broker for blinkx plc)
+44 (0)207 986 4000
+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 more than 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.