KIT digital Reports First Quarter 2011 Results
finance.yahoo.com
Q1 2011 Revenue Up 98% Overall and Up 38% Organically Year-Over-Year to $34.5M, Driving 139% Increase in EBITDA to Record $7.1M
KIT digital Enters Growth Phase Focused on Customer-Centric Organic Growth
* During Q2 2011, KIT digital achieved an important milestone in its multi-year mergers and acquisitions-led industry consolidation effort, reaching our target 45-50% market share in the Internet Protocol ("IP") video platform software sector, with a balanced client portfolio across its three major geographies and customer vertical segments;
* Through the flexible, services-oriented architecture of its KIT Platform video management system, the company has developed the most comprehensive solution set in the industry for managing complete, multi-screen IP video solutions -- from the lens of the camera to the eye of the audience, or "lens to lens." The company will now turn its focus to ongoing internal product development and expects to spend approximately 7-8% of revenue going forward on R&D;
* KIT now possesses the deepest and broadest client deployment credentials in the industry, with reference clients from various client verticals, including media and entertainment companies like ABC News, Associated Press, BBC, CNN, ESPN Star, News Corporation and Universal, network operators such as AT&T, BskyB, Foxtel, Telecom Argentina, Telefonica, Singtel, Verizon and Vodafone, and non-media enterprises like Airbus, Best Buy, Bristol Myers-Squibb, GM, NASDAQ, NATO, SAP and Volkswagen;
* Management intends to complete substantially all internal restructuring and integration initiatives and financial charges by the end of Q2 2011, eliminating below-the-line charges in the latter half of 2011 and beyond;
* The company recently reorganized its operations under three regional headquarters -- in New York (Americas), London (EMEA) and Beijing (Asia-Pacific) -- which more closely aligns operational capabilities with customer needs and positions the company to more effectively drive scalable, long-term growth;
* KIT digital closed the ioko acquisition on May 3, 2011 and expects to receive necessary regulatory and other approvals to close the Polymedia acquisition within the next two weeks;
Selected Q1 2011 Client Wins
* Dick Clark Productions, a leading events and packaged programming producer and syndicator, selected the KIT Platform to manage and deliver video content for its premier events, including the Academy of Country Music Awards, The Golden Globe Awards, American Music Awards and New Year's Rockin' Eve.
* Kraft Foods in Europe selected the KIT Platform and its digital signage capability to launch an internal TV channel to help Kraft improve its internal communication.
* A major media arm of the Chinese government selected KIT digital to build and implement an IPTV and mobile TV network throughout China, tying together hundreds of local terrestrial television broadcasters across the country.
* A major user-generated content experience site that ties together iPhone and Android video "moment" and clip sharing, selected the KIT Platform to supply video transcoding and mobile applications using KIT's APIs, and engaged KIT's professional services team to build the interactive user experience.
* RaceTech, an innovative racecourse services provider, selected KIT digital to build and equip three next-generation, IP capable HD Outside Broadcast (OB) production vehicles for two of the UK's most prestigious racing fixtures -- the Cheltenham Festival and the Aintree Grand National.
* Voice of America (VOA), the multimedia international broadcasting service funded by the U.S. Government, selected KIT digital to provide a fully managed solution to automate syndication and instant and simultaneous delivery of VOA's media assets, including video footage, audio and images to its network of radio and TV affiliates across nearly 40 countries.
* The broadcast arm of Vietnam-based An Vien Group, selected KIT digital to install a fully IP and HD-ready Network Operation Center for the country's new direct-to-home (CTH) cable network.
* Believe Entertainment Group selected the KIT Platform as the backbone for "The LeBrons," a multimedia and social media-focused project featuring LeBron James. Believe Entertainment also selected KIT's Sputnik team to provide associated design and marketing services.
* NATO selected the KIT Platform to power the launch of its new multi-screen video portal, Nato Channel (natochannel.tv).
* General Electric selected KIT digital to launch a KIT Platform-powered overhaul of its video assets for iPad compatibility.
* IPM, the second largest media group in Belgium, extended its relationship with KIT digital to power multi-screen video portals across properties such as La Libre Belgique (www.lalibre.be) and La Dernière Heure (www.dhnet.be).
* The JASON Project, developed in conjunction with NOAA, NASA, and the National Geographic Society to connects students with scientists and researchers in real- and near-real time, selected the KIT Platform to deliver live video content directly from offshore research vessels to museums throughout the U.S.
* Tribeca Film Festival extended its relationship with KIT digital for the second year to power the Tribeca 2011 Online Festival, the world's first immersive and interactive online and mobile movie festival, featuring true adaptive high-definition premium video content and live streaming coverage using the KIT Platform. |
