17th Nov 2015 11:52
LONDON (Alliance News) - Blinkx PLC Tuesday reported a significantly widened pretax loss for its first half, mostly as a result of exceptional costs as it took steps to shift its business and exit non-core product lines.
For the half year to end-September the company reported a pretax loss of USD79.3 million, widened significantly from USD9.7 million a year before, mostly as a result of exceptional costs of USD61.0 million. Revenue fell to USD91.4 million from USD106.0 million.
Blinkx undertook a process to exit and stop investments in some of its historical product lines that were considered non-core, and as a result of this and an adjusted forecast due to a weaker than expected performance of some products, it recorded an impairment charge of USD50.3 million. Additionally, it accelerated a USD9.0 million write-off of some intangible assets related to legacy platforms and products.
On an adjusted basis, stripping out acquisition, exceptional and other costs, the company reported a loss from operations of USD13.1 million, widened from a loss of USD3.5 million a year before, due to a fall in non-core revenue, and an increase in the cost of traffic acquisition.
"The steps we took over the past year, including key acquisitions and investments, have been critical to the company's transformation. Core product revenues grew by 37% year-on-year - a clear indicator that company strategy is aligned with market shifts and growth trends. Looking forward, we anticipate Core products to gain further traction, as we focus our efforts to return to profitability," said Chief Executive Officer Subhransu Mukherjee in a statement.
Shares in Blinkx were down 1.6% at 25.35 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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