Blinkx and you’ll miss it: online ad firm fails to meet expectations
SHARES in Blinkx sank after the online video search and advertising company said second-quarter trading was below expectations and it expected to post a first-half operating loss.
The Aim-listed stock dropped 17 per cent to 22p yesterday after saying growth in its core business was unlikely to offset declines in non-core areas that are being divested or exited.
In a trading update, Blinkx said revenue from its core business is expected to grow 75 per cent year-onyear to at least $55m (£35m) for the first-half to 30 September, while noncore sales will fall about 60 per cent to$30m.
The company said it plans to cut $10m from operating costs and reduce its headcount by about 100 to 325. Management has taken “decisive steps” to manage the group’s cost structure and expects to return to profitability, according to its statement.
Last year Blinkx shares plummeted after a highly critical blog-post by Harvard Business School academic Benjamin Edelman, and a series of profit warnings hit investor confidence.