LONDON and SAN FRANCISCO, May 13,
2013 /PRNewswire/ --
blinkx's year-end conference call
will be webcast live
at http://www.blinkx.com on 13 May, 2013
at 9:30 a.m. BST/4:30 a.m.
EDT/1:30 a.m. PDT
blinkx PLC (BLNX.L), the Internet Media platform powered by
CORE, today reported financial results for the year ended
31 March 2013.
Financial Highlights
Year ended Year ended
31 March 31 March
2013 2012
(unaudited) (audited) %
$000 $000 Change
Revenue 197,957 114,397 73%
Profit before taxation - adjusted* 24,619 10,732 129%
Profit before taxation 16,722 1,926 768%
Adjusted* EBITDA 30,187 14,288 111%
Cash 55,861 38,406 45%
Earnings per share Cents Cents
Basic - adjusted* 6.98 3.60
Basic 4.80 1.10
Diluted - adjusted* 6.84 3.52
Diluted 4.70 1.08
Business Highlights
- Revenue increased by 73% to $198.0
million, from $114.4 million
in FY2012
- Adjusted* EBITDA increased by 111% to $30.2 million, from $14.3
million in FY2012
- Adjusted* profit before tax of $24.6
million, an increase from $10.7
million in FY2012
- Basic earnings per share of 4.8
cents, a 336% increase from 1.1
cents in FY2012
- Net cash at year-end was $55.9
million, an increase from $38.4
million in FY2012
- Secured content and syndication partnerships, including Daily
Motion, Kiplinger, Fox Sports, Sony and Popbox
- Added marquee brand advertisers, including Clorox, Kellogg,
Nike, Disney, Gap, Siemens and Mattel
- Launched next generation of flagship video search and discovery
engine, blinkx.com, optimized for mobile environments and
integrated with social media platforms
- Achieved the front end integration of FY2012 acquisitions well
ahead of schedule
- Completed the successful transition of the CEO and CFO
roles
- Expanded the leadership team with key Marketing, Product and
Technology executives
Commenting on the results, S. Brian
Mukherjee, CEO of blinkx, said: "This has been an exciting
year for blinkx and we are delighted to report a record
performance. The business demonstrated strong underlying growth,
stability and efficiency, which was accelerated by the
ahead-of-schedule integration of the acquisitions that we made last
year. The scale, scope and reach of these acquisitions
enabled us to serve a greater number of advertisements to a wider
audience at robust monetization rates, which helped drive our
growth.
Several structural trends are fueling the growth of the online
advertising industry in general, and the video advertising sector
in particular. These include widespread broadband adoption,
the proliferation of connected devices and the rapid migration and
consumption of video content online - all of which are prompting
advertisers to follow audiences online. This year, the
industry also benefited from the increase in advertising spend
attributed to two high-profile events - the summer Olympics and the
US political campaigns in a Presidential election cycle. We
believe the market momentum underscores the vitality of the sector
and of our business model. The opportunity for blinkx lies in
maximizing yield through product innovation, expansion of its
distribution channels and the capture of new and emerging revenue
streams. Based on our capabilities and the fundamentals of the
industry, we remain confident in our prospects and
opportunities."
Non-GAAP Measures
- This press release contains references to adjusted*
EBITDA. This financial measure is not a measure that has any
standardized meaning prescribed by IFRS and is therefore referred
to as a non-GAAP measure. The non-GAAP measures used by blinkx may
not be comparable to similar measures used by other companies.
- Adjusted* EBITDA is defined as Profit for the year attributable
to equity holders of the parent before interest, taxes,
depreciation and amortization, stock based compensation expense,
and acquisition and exceptional costs. Management believes that
this measure is a useful supplemental metric as it provides an
indication of the results generated by the Company's principal
business activities prior to consideration of how the results are
impacted by one time exceptional charges, how the results are taxed
in various jurisdictions, or how the results are affected by the
accounting standards associated with the Group's stock based
compensation plan.
Overview
These results underscore the success of the Company's core
strategic focus, which has been to create a significant, scalable
and growing ecosystem of audience, content providers, advertising
networks and advertisers, which is becoming video enabled.
The acquisitions we made in FY2012 enabled us to develop an
expanded set of opportunities to syndicate content and increase our
audience reach for advertisers. Our forward strategy and
growth are based on further monetizing this opportunity, while also
expanding the ecosystem to include rapidly proliferating form
factors, such as tablets and smartphones.
During the period, the company was proud to unveil the next
generation of its flagship video search and discovery technology at
blinkx.com. With an eye to the growing mobile market, the new
site was built from the ground up for use on connected devices,
with a simple, elegant user interface that is touch optimized for
continuous video discovery and streaming, and offers easy
personalization tools and integration with social networks. The
upgraded search and discovery functionality is currently being
rolled out to our syndication partners and affiliates.
Over the year, we have continued to build on our leadership
position in the online video market. We progressed our
cross-platform distribution strategy by mobile-enabling our
syndication partners and securing Connected TV partnerships with
Sony and Popbox. We also expanded our index of premium
content through agreements with Kiplinger, Daily Motion and XOS
Sports, among others. This combination of top tier
professional content, broad distribution and our patented video
search, discovery and advertising platform and products, helped us
attract new and repeat marquee brand advertisers, such as Disney,
Gap and Siemens.
Market
There are four structural trends driving the growth of the
online video sector in which blinkx operates.
First, broadband and high-speed mobile networks are becoming
increasingly prevalent. Reliable, high speed connectivity
means that an ever growing volume of rich media is being consumed
online, with estimates predicting that by 2016, 1.2 million minutes
of video will traverse the Internet every second.
Second, there is an ongoing move to video-enable the Text Web.
Websites from a decade ago resembled a static page from a magazine.
Today, consumers expect rich media to be part of their online
experience, and destination sites position video content
prominently to enhance and complement their text content - whether
a cooking blog that offers video on how to prepare ingredients, or
a professional news outlet with video footage of breaking news
stories.
Third, the proliferation of smartphones and tablets is
accelerating access to high-speed mobile networks and enabling
consumers to watch video content anytime, anywhere. According
to Cisco, video consumption accounted for 51% of overall Internet
traffic in 2012, and is expected to grow to 55% by 2016.
Finally, advertisers have increased budgets to address the
growing online video audience - 1.3 billion viewers worldwide in
2012, according to comScore. Online video presents a powerful
opportunity for advertisers because it combines the emotive,
storytelling, brand-building power of TV with the measurability and
targeting power of the Internet. blinkx's patented CORE technology
remains unique in being able to analyse video on the Web and place
contextually relevant advertisements, resulting in highly targeted
and effective marketing campaigns for advertisers.
While online video advertising spend is still only a fraction of
conventional TV spend, the trends are clear and compelling - major
brands are embracing the format and spend is graduating from
experimental to incremental budgets. We believe that online
video budgets will begin to complement and even cannibalize TV
spend in the future.
blinkx is well positioned to capitalize on the market
opportunity. In the last financial year, the combination of the
underlying structural growth in our markets, coupled with the
accelerating contribution from successfully integrated prior year
acquisitions, plus one-off benefits from the Olympics and US
Presidential elections - which we estimate at around a tenth of our
FY2013 revenue, enhanced the growth of the company. Industry
reports indicate the market outlook remains fundamentally positive
in the coming year, based on observed trends in both consumer and
advertiser behaviour. Within this sector, blinkx has a number
of well-defined revenue opportunities, covering the gamut of
product innovation and expanded distribution. We expect to exceed
projected industry growth rates, given the scale, scope and reach
of our operations.
Technology
Since inception, blinkx has spent almost $60 million in capital investment on research,
development and infrastructure to build and enhance blinkx CORE,
(COncept Recognition Engine) its patented video engine. blinkx CORE
solves the challenges inherent in processing, managing and
monetizing all forms of rich media. It comprises speech
recognition, visual and text analysis to enable blinkx to
understand video at a greater level of depth and accuracy than any
other offering on the market. This deep, granular understanding of
rich media enables blinkx to process, monetize and deliver video
and audio content in unique ways, and to capitalize on the true
potential of video in the four screen world of PCs, Tablets,
Smartphones and Connected TV.
blinkx's advertising platform, AdHoc, is built on CORE. AdHoc is
unique because it leverages CORE's patented speech recognition,
visual analysis and concept recognition technology to match
emotive, compelling rich media advertisements to online audiences,
resulting in more effective brand marketing for advertisers and,
most importantly, an engaging experience for consumers. In
FY2013, AdHoc enabled us to attract new and repeat marquee brand
advertisers, including Clorox, Kellogg, Nike, Mattel and
P&G.
blinkx.com, our flagship consumer site, also leverages CORE
technology to provide video search and discovery technology to
users. During the period, we launched the next generation
blinkx.com, which showcases our upgraded video search, discovery
and viewing experience, with recommendation and personalization
features that can be easily integrated across a users' social
graph. The new site was built using responsive design, with an
interface that is touch-optimized for effortless navigation on
smartphone and tablet devices, resulting in a significant increase
in mobile usage. The upgraded search and discovery functionality is
currently being rolled out to our syndication and affiliate
partners. blinkx CORE also powers video search and discovery for
some of the Internet's largest properties, including AOL and
Ask.
Operations
The vast majority of our revenue is generated from advertising
that is sold both directly and sourced from third parties.
Through organic growth, selective acquisitions and unique
technological capabilities, we have created a growing ecosystem of
audience, content providers, and advertisers that we continue to
video-enable.
The successful integration of the acquisitions has brought us
access to vast networks of text-oriented sites and the potential to
deliver video content and advertising to over 3,000 new web
publishers, syndication partners and affiliates. In addition
to massive scale, with access to billions of potential advertising
interactions annually, the integrations have significantly
broadened the scope of advertising products we are able to offer
our customers, and boosted our reach to tens of millions of unique
users per month.
Today, however, we monetize only a fraction of the total ad
interactions that we now have access to as a result of the
acquisitions. This represents a captive, organic growth opportunity
for the company. We see the exploitation of the un-monetized
interactions, through a growing stable of content and advertising,
as a tangible commercial opportunity.
Leadership
As previously, Subhransu ("Brian") Mukherjee, who was the COO of
blinkx, was appointed CEO and elected to the Board of Directors as
an Executive Member. Suranga Chandratillake, the Founder and
CEO of the Company, assumed the role of President and Chief
Strategy Officer and continues to serve as an Executive Member on
its Board. Jonathan Spira, former
CFO, stepped down as of 30 November,
2012. Edward Reginelli, formerly Senior Vice President
and Group Controller at blinkx, succeeded Mr. Spira as CFO.
As demonstrated by the performance of the company, the
transition within the executive management team has been completed
smoothly.
During a period of transition and growth, the Company has made
significant investment in management bandwidth and expertise in
Technology, Product and Marketing by bringing on board three
seasoned executives who will play important roles in building the
business and growing the company though existing initiatives and
new market opportunities.
Dan Slivjanovski joined as Senior
Vice President, Marketing, bringing over 15 years of executive
experience in digital marketing, management consulting and
integrated agency services to his new role. Technology
veteran Gerry Louw was hired as
Senior Vice President, Engineering and Operations. Mr. Louw has
driven enterprise-level change and innovation across a wide
spectrum of businesses, including Video Monitoring Services (VMS)
and Agency.com. Most recently, we announced the appointment of
Trent Wheeler, a product expert,
from Rovi Corporation as Senior Vice President, Product.
Financial Highlights
For the financial year ended 31 March
2013 (FY2013), revenue totaled $198.0
million, an increase of 73% over the $114.4 million in revenue reported for the year
ended 31 March 2012 (FY2012). Revenue
benefited from strong underlying growth, which was accelerated by
the ahead-of-schedule integration of the acquisitions and two
high-profile events during the year, namely the summer Olympics and
the US presidential election cycle. Over 95% of blinkx's
revenue is generated from online advertising. Technology and
services related to managing digital assets and advertising spend
make up the remainder of the revenue stream. The Company's
advertising products broadly fall into two categories: Premium and
Conventional. Premium includes high value, ad units such as video,
rich media, social, text and mobile, which are directly sold or
sourced from third parties, such as advertising trading platforms.
Conventional revenues are generated from high volume ad units
- generally banner ads. Our goal is to monetize the
un-monetized interactions available to us, and convert conventional
revenues to premium revenues through video enabling our syndicate
partners and affiliates.
Profit from operations before acquisition and exceptional cost
was $24.6 million for FY2013, an
increase of 135% over $10.4 million
for FY2012. The operating profit margin improvement resulted
from the benefit of operational gearing, as the profit from
additional revenue growth has outpaced cost and expense trends.
Adjusted net profit before acquisition costs, exceptional and
integration costs, amortisation of purchased intangibles and other
income for FY2013 was $25.2 million
(FY2012: $12.7 million). Net profit
for FY2013 was $17.4 million (FY2012:
$3.9 million).
Adjusted basic earnings per share for FY2013 was 6.98 cents (FY2012: 3.60
cents), 4.80 cents basic
earnings per share (FY2012: 1.10
cents), 6.84 cents adjusted
fully diluted (FY2012: 3.52 cents)
and 4.70 cents fully diluted (FY2012:
1.08 cents).
blinkx's cash balance at 31 March
2013 was $55.9 million
(31 March 2012: $38.4 million) benefiting from strong cash
conversion efforts.
BLINKX PLC
CONDENSED
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
Results for the year
to 31 March 2013
(in thousands,
except per share amounts)
Year
ended Year ended
31 March 31 March
2013 2012
(reclassified**)
Note $'000 $'000
Revenue: continuing operations 197,957 114,397
Cost of revenue 9 (97,006) (46,604)
Research and development (15,050) (10,526)
Sales and marketing 9 (51,112) (39,774)
Administrative expenses (10,208) (7,047)
Total cost and expenses (173,376) (103,951)
Profit from operations before acquisition
and exceptional costs* 24,581 10,446
Amortisation of purchased intangibles
Research and development (1,629) (1,708)
Sales and marketing (3,749) (2,353)
(5,378) (4,061)
Acquisition and exceptional costs 7 (3,276) (4,745)
Profit from operations 15,927 1,640
Other income 757 -
Net investment revenue 38 286
Profit before taxation 16,722 1,926
Tax 3 634 1,962
Profit for the year attributable to equity
holders of the parent
before acquisition and exceptional costs and
other income* 25,253 12,694
Profit for the year attributable to equity
holders of the parent 17,356 3,888
Note Cents Cents
Earnings per share
Adjusted basic* 4 6.98 3.60
Basic 4 4.80 1.10
Adjusted diluted* 4 6.84 3.52
Diluted 4 4.70 1.08
*Adjusted for acquisition and
exceptional charges of $3.3m
(2012:$4.7m), amortization of
purchased intangibles of $5.4m (2012:
$4.7m) and other income of
$0.8m (2012: nil)
** Income statement includes
reclassification of certain cost of revenue and sales and marketing
expenses as detailed in note 9.
CONDENSED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(UNAUDITED)
Results for the year
to 31 March 2013
Year Year
ended ended
31 31
March March
2013 2012
$'000 $'000
Profit for the year 17,356 3,888
Exchange difference on translation of foreign operations (1,456) (295)
Total comprehensive income for the year, net of related
tax effects 15,900 3,593
BLINKX PLC
CONDENSED
CONSOLIDATED BALANCE SHEET (UNAUDITED)
As at 31 March 2013
(in thousands)
Year ended Year ended
31 March 31 March
2013 2012
Note $'000 $'000
ASSETS
Non-current assets
Goodwill 49,080 48,878
Intangible assets 24,678 29,651
Property, plant and equipment 2,103 2,275
Other receivables 100 250
Deferred tax asset 10,983 7,076
86,944 88,130
Current assets
Trade receivables 29,902 21,950
Other receivables 5,657 3,803
Cash and cash equivalents 55,861 38,406
91,420 64,159
Total assets 178,364 152,289
LIABILITIES
Current liabilities
Trade and other payables (32,822) (25,465)
Non-current liabilities
Deferred tax liability - (1,732)
Other payables (551) (474)
Total liabilities (33,373) (27,671)
Net assets 144,991 124,618
Shareholders' equity
Share capital 5 6,850 6,837
Share premium account 101,975 101,552
Shares to be issued 6 750 754
Stock compensation reserve 13,975 11,938
Currency translation reserve (9,293) (7,837)
Merger reserve 33,089 33,089
Retained loss (2,355) (21,715)
Total equity 144,991 124,618
BLINKX PLC
CONDENSED
CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)
Results for the year
to 31 March 2013
(in thousands)
Year ended Year ended
31 March 31 March
2013 2013
$'000 $'000
CASH FLOWS FROM OPERATING ACTIVITIES
Profit from operations 15,927 1,640
Adjustments for:
Depreciation and amortization 8,947 6,379
Share based payments 2,037 1,524
Non-cash acquisition and exceptional costs 2,676 -
Foreign exchange gain (178) (453)
Operating cash flows before movements in working capital 29,409 9,090
Changes in operating assets and liabilities:
Increase in trade and other receivables (9,534) (642)
Increase in trade and other payables 6,944 356
Net cash generated by operations 26,819 8,804
Income taxes paid (4,833) -
Net cash generated by operating activities 21,986 8,804
CASH FLOWS FROM INVESTMENT ACTIVITIES
Interest received 38 286
Purchase of property, plant and equipment and intangibles (3,989) (5,950)
Acquisitions, net of cash acquired 250 (33,406)
Net cash used in investment activities (3,701) (39,070)
CASHFLOWS FROM FINANCING ACTIVITIES
Net payments on finance lease (171) (148)
Proceeds from issuance of shares 432 15,264
Net cash generated in financing activities 261 15,116
Net increase / (decrease) in cash and cash equivalents 18,546 (15,150)
Beginning cash and cash equivalents 38,406 52,809
Effect of foreign exchange on cash and cash equivalents (1,091) 747
Ending cash and cash equivalents 55,861 38,406
BLINKX PLC
CONDENSED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
Results for the year
to 31 March 2013
(in thousands)
Ordinary Share Shares Stock
share premium to be compensation
capital account issued reserve
Note $'000 $'000 $'000 $'000
Balance as at 31 March 2011 6,398 86,443 - 9,968
Net profit for the year - - - -
Other comprehensive income - - - -
Total comprehensive income for the year - - - -
Issue of shares, net of costs 439 15,109 - -
Shares to be issued - - 754 -
Share based payment - acquisition related - - - 446
Share based payments 2 - - - 1,524
Tax movement on share options - - - -
Balance as at 31 March 2012 6,837 101,552 754 11,938
Net profit for the year - - - -
Other comprehensive income - - - -
Total comprehensive income for the year - - - -
Issue of shares, net of costs 5 13 423 (4) -
Share based payments 2 - - - 2,037
Tax movement on share options - - - -
Balance as at 31 March 2013 6,850 101,975 750 13,975
(Table continues)
Currency
translation Merger Retained
reserve reserve loss Total
Note $'000 $'000 $'000 $'000
Balance as at 31 March 2011 (7,542) (4,323) (25,530) 65,414
Net profit for the year - - 3,888 3,888
Other comprehensive income (295) - - (295)
Total comprehensive income for the year (295) - 3,888 3,593
Issue of shares, net of costs - 37,412 - 52,960
Shares to be issued - - - 754
Share based payment - acquisition related - - - 446
Share based payments 2 - - - 1,524
Tax movement on share options - - (73) (73)
Balance as at 31 March 2012 (7,837) 33,089 (21,715) 124,618
Net profit for the year - - 17,356 17,356
Other comprehensive income (1,456) - - (1,456)
Total comprehensive income for the year (1,456) - 17,356 15,900
Issue of shares, net of costs 5 - - - 432
Share based payments 2 - - - 2,037
Tax movement on share options - - 2,004 2,004
Balance as at 31 March 2013 (9,293) 33,089 (2,355) 144,991
BLINKX PLC
NOTES TO THE
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(UNAUDITED)
1. Basis of preparation
While the financial information included in this preliminary
announcement has been prepared in accordance with the recognition
and measurement criteria of International Accounting Reporting
Standards (IFRSs), this announcement does not itself contain
sufficient information to comply with IFRSs. The Company will
publish full financial statements that comply with IFRSs.
The financial information set out in this unaudited announcement
does not constitute the Company's statutory accounts for the year
ended 31 March 2013 or 31 March 2012, within the meaning of Section 435
of the Companies Act 2006. The audit of the statutory accounts for
the year ended 31 March 2013 is not
yet complete. These accounts will be finalised on the basis of the
financial information presented by the directors in this unaudited
announcement and will be delivered to the Registrar of Companies
following the Company's annual general meeting.
The financial information for the year ended 31 March 2012 is derived from the statutory
accounts for that year which have been delivered to the Registrar
of Companies. The Group's auditor issued a report on those
financial statements that was unqualified and did not draw
attention to any matters by way of emphasis and did not contain a
statement under section 489 (2) or (3) of the Companies Act
2006.
The directors have considered the financial resources of the
Group and the risks associated with doing business in the current
economic environment and believe the Group is well placed to manage
these risks successfully. In doing this the board has prepared a
business plan and cash flow forecast setting out key business
assumptions, including the rate of revenue growth, operating
margins and cost control. The directors have considered these
assumptions to be reasonable and that the Group has adequate
resources to continue in operational existence for the foreseeable
future being a period of no less than 12 months from the date of
this announcement. Accordingly, they continue to adopt the going
concern basis in preparing these financial statements.
2. Share-based payments
Included within cost and expenses are the following amounts in
respect of share based payments:
Year ended Year ended
31 March 31 March
2013 2012
(unaudited) (audited)
$'000 $'000
Sales and marketing 1,105 975
Research and development 668 315
Administrative expenses 264 234
2,037 1,524
3. Taxation
The tax credit of $0.6m (2012:
$2.0m), includes recognition of a
$3.5m credit to fully recognize the
deferred tax asset in the US business and a $0.5m prior period adjustment.
4. Earnings per share
The calculation of the basic and diluted earnings per share is
based on the following information.
Year ended Year ended
31 March 31 March
2013 2012
(unaudited) (audited)
$'000 $'000
Profit
Profit used in calculation of basic and diluted
earnings per share 17,356 3,888
Profit used in calculation of adjusted basic
earnings per share 25,253 12,694
shares shares
Number of shares
Weighted average number of shares for the
purpose of basic and adjusted* basic earnings
per share 361,955,834 352,653,116
Weighted average number of shares for the
purpose of diluted and adjusted* diluted
earnings per share 369,116,636 360,300,309
*Adjusted for acquisition and
exceptional costs of $3.3m
(2012:$4.7m), amortization of
purchased intangibles of $5.4m (2012:
$4.1m) and benefit from other income
of $0.8m (2012:$nil)
5. Share capital
The issuance of shares in the period relates to the issuance of
1,637 shares to the former shareholders of Burst Media Corporation
and 804,071 shares on the exercise of employee share options.
6. Shares to be issued
The shares to be issued reserve relates to shares which are
expected to be issued to former Burst shareholders, as part of the
consideration, who have not yet submitted the paperwork to effect
the exchange of Burst shares for blinkx shares.
7. Acquisition and exceptional
costs
Acquisition and exceptional charges of $3.3 million (2012: $4.7m) have been separately identified on the
face of the income statement. These charges included post
acquisition remuneration, one time write down of a prepaid
distribution charge, onerous facility cost, severance and
professional services.
8. Acquisition of subsidiaries
On 9 November 2011 the group
acquired 100% of the issued share capital of Prime Visibility Media
Group Inc., an online advertising network and digital advertising
agency.
Fair values of purchased assets and liabilities:
Provisional Adjustment to
FV @ date FV @ Final
of purchase March 2013 Fair Value
$ million $ million $ million
Intangibles 12.6 - 12.6
Other assets 5.7 - 5.7
Deferred tax asset 1.7 (0.2) 1.5
Cash 0.7 - 0.7
Trade & other payables (7.3) - (7.3)
Total identifiable assets 13.4 (0.2) 13.2
Goodwill 21.4 0.2 21.6
Total consideration 36.0 * - 36.0 *
*The fair value of the $36.0
million consideration paid comprises cash paid of
$31 million; deferred consideration
provisionally determined of $3.8
million; and prepaid post acquisition remuneration of
$1.2 million.
The $0.2 million adjustment to
fair values relates to a deferred tax asset valuation
adjustment.
The measurement period relating to the PVMG acquisition is now
complete so no further purchase adjustments will be posted to the
fair values.
9. Standardisation of expense
classifications on integration
As part of the process of integrating those companies acquired
in fiscal year 2012, the company has been aligning its accounting
policies to ensure consistent expense classifications across the
expanded Group. The accounting policies are included in full in the
annual report, which does not form part of this preliminary
announcement. Certain prior year marketing and advertising expenses
totaling $7.3 million have been
reclassified according to blinkx accounting policies from Cost of
revenue to the Sales and Marketing line. This expense
reclassification does not impact revenue, operating profits, basic
earnings per share or diluted earnings per share as previously
reported.
Year ended Year ended
31-Mar 31-Mar
2012 2012
(As previously reported) Reclassification (reclassified)
$'000 $'000 $'000
Cost of revenue (53,904) 7,300 (46,604)
Sales and marketing (32,474) (7,300) (39,774)
10. Related party transactions
For the purposes of IAS 24 Related Party Disclosures, the
directors are considered to be the Group's key management
personnel. Their remuneration is detailed below. There were no
other related party transactions in either the current year or
prior year.
Remuneration of the Directors was as follows:
Year ended Year ended
31 March 31 March
2013 2012
(unaudited) (audited)
$'000 $'000
Anthony Bettencourt 57 55
Suranga Chandratillake 411 397
Michael Lynch 57 55
Subhransu ("Brian") Mukherjee 555 n/a
Mark Opzoomer 57 55
1,137 562
The non-executive directors fees are £50,000 per annum as of
1 March 2013 (2012: £35,000).
The increase shown in the above table of the dollar
equivalent is a result of exchange rates.
Details of share options granted to the Directors are set out
below. No Directors' share options were cancelled or lapsed, or
changed, during the fiscal year. Vesting and exercise of
options is subject to continued employment.
At 31 March At 31 March
2012 Granted Exercised 2013
Number Number Number Number
Suranga Chandratillake 4,476,057 350,000 - 4,826,057
Michael Lynch 35,248 - (35,248) -
Subhransu ("Brian") Mukherjee 80,000 2,500,000 - 2,580,000
The total gain on exercise of share options by Directors was
$13,362 (2012: $851,045). None
of the directors has pension, retirement or similar entitlement. No
payment or awards were made to former Directors during the
year.
It is not anticipated that there will be any significant changes
to the Directors' remuneration in the current year.
For further information please contact:
Analyst and Investor Contact
Ryan Klinefelter
blinkx plc
(US) +1-415-655-1450
Financial Media Contacts
Edward Bridges/Charles Palmer
FTI Consulting
(UK) +44-(0)20-7831-3113
NOMAD and Broker for blinkx plc
Charles Lytle/Christopher Wren
Citigroup Global Markets Ltd
(UK) +44-(0)20-7986-9756
SOURCE blinkx plc