17th May 2016 08:43
LONDON (Alliance News) - Blinkx PLC on Tuesday reported a widened pretax loss for its most recently ended financial year, hit by one-off costs and a fall in revenue.
Blinkx said it had achieved profitability in the third quarter, ahead of its expectations, but the fourth quarter had been hit by normal seasonality.
For the full year to end-March, the company reported a pretax loss of USD94.3, widened from a pretax loss of USD24.8 million the previous year, as a fall in revenue to USD166.7 million from USD215.0 million was only partly offset by lower operating costs.
Additionally, Blinkx recorded acquisition and exceptional costs of USD65.3 million, including a goodwill impairment of USD50.3 million.
Over the course of the year, Blinkx undertook a "broad restructuring" of its business to realign under its 'RhythmOne' brand, including cutting headcount to reduce its operating expenses by around USD40 million.
This restructuring was also led to the fall in revenue as the company rationalised its product portfolio.
It said it believes the steps it took to realign its business have "set the stage for higher quality top-line growth" and a return to profitability on an adjusted earnings basis in its current full year.
Blinkx defines its adjusted earnings before interest, tax, depreciation and amortisation to exclude other exceptional expenses.
The company said it enters its new financial year in a strong, competitive position with a product portfolio that is well aligned with industry growth trends.
Shares in Blinkx were up 21% at 20.25 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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