KIT digital (Nasdaq: KITD), which in January acquired cloud-based hybrid TV play Sezmi for $27 million, Monday reported revenue of $70 million in the fourth quarter, an 82 percent increase from a year ago and 12 percent better than its previous quarter; it's also $3 million more than its previous guidance for the quarter. KIT digital said revenue for the full year should be $215 million, a 102 percent increase from 2010.
But the technology services provider for multiscreen video management and delivery missed its guidance on non-GAAP operating income, reporting $16.4 million for the quarter compared to the $17.5 million in forecast. Nonetheless, the number was up 145 percent from a year ago, and it sequentially rose 15 percent.
The company said it expects first quarter revenues in excess of $72 million, and cash-based adjusted EPS between 25-30 cents. For the year, its updated guidance includes revenues of $320 million to $330 million, up from its initial $320 million guidance. Non-GAAP operating income margin should be between 23.5 percent and 25.5 percent.
KIT digital said it plans to increase spending on sales and marketing in 2012 by $5 million, and $3 million in R&D.
It also said strength and expected growth through 2013 in the APAC and Latin America regions would lead it to increase its recruitment of direct sales, partnerships and engineering personnel.
The extra spending, prompted KIT digital to lower its cash-based adjusted EPS guidance to a range between $1.35 to $1.45 from at least $1.53 previously
"The organic growth in our business is reflected in these preliminary record results," said KIT digital's chairman and CEO, Kaleil Isaza Tuzman. "The quarter's non-GAAP operating income is expected to come in marginally lower than originally targeted, due to increased internal staffing and third-party resources for additional tier 1 deployments in the quarter. However, we were pleased with the bottom-line results, and the investments we are making now add to our conviction that we have set the stage for a strong 2012 and beyond. We grew organically at an annualized rate of over 50 percent in the fourth quarter and won tier 1 network-operator and media client deals in all three of our regions-- some of which we have yet to announce."
Shares were up 7 cents, or .62 percent at yesterday's close, and were up 52 cents, or 4.57 percent in pre-market trading. The stock has traded in a 52-week range of $7.38 to $14.26.
- see this release
- see this Reuters article
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