KIT digital (NASDAQ:KITD), which has acquired a slew of companies in the past 12 months, reported preliminary second quarter results that project $48 million in revenues, a 108 percent increase from a year ago, and a 39 percent improvement from the previous quarter. The company attributed the increase to organic growth and revenue from several companies it acquired this year, among them Kyte, KickApps, Kewago and Ioko.
Still, the company expects to book a net loss for the second quarter on a GAAP basis, after factoring in non-cash charges related to depreciation and amortization, stock-based compensation and derivative loss, as well as acquisition-related restructuring and integration expenses. The company expects to book approximately $10 million of these restructuring and integration charges in the second quarter of 2011.
KIT digital said it added more than 35 new clients during the quarter, with an average revenue per month per customer (ARPU) of more than $30,000, which is consistent with the company's ongoing focus on higher-end opportunities in the market and large, multi-year contracts in emerging sectors and geographies. The company's client base totaled more than 2,300 customers on June 30.
"Our pace of internal growth strengthened during the second quarter," said Kaleil Isaza Tuzman, chairman and CEO of KIT digital. "We feel we are approaching a tipping point in our industry. The proliferation of connected devices is driving service providers around the world to reevaluate their approach to traditional broadcast and IPTV. KIT digital has continued to operate in this 'sweet spot,' leading the global transformation of traditional broadcast television to multi-screen, OTT and multi-platform solutions."
Isaza Tuzman said the results reflect the company's ability to cross-sell to its newly expanded client base from the acquisitions, transitioning clients currently on legacy platforms to its KIT Platform.
The company said it expects a 23 percent EBITDA margin for the full year of 2011 and expects to be generating approximately $2.5 million in monthly free cash-flow by the end of the fourth quarter of 2011.
KIT digital also said it will release the latest iteration of its video platform in September. The platform will come in two editions: one with a full range of features and multi-screen capabilities targeted at over-the-top network operators and large content companies and the other, a cloud-based OVP aimed at smaller content providers.
The company will release full results Aug. 9.
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