Kit Digital Reports Strong Q2, Gives Positive Guidance, Hints at Acquisitions

Posted by Joe Zaller
Aug 17 2010

IPTV technology provider Kit Digital reported their Q2 results Monday.  Revenue for the quarter came in at $23.1m, an increase of 120% versus the same period last year, and an increase of 33% versus the previous quarter.

About 75% of the company’s revenue during the quarter came from fees for the company´s “VX” IP video platform solutions, while approximately 25% came from professional services.

On a geographic basis revenue was split as follows, 41% from EMEA; 36% from the Americas and 23% from Asia-Pacific.

Net loss for the second quarter 2010 included $3.1 million in non-cash charges, including $1.1 million in stock-based compensation and $2.0 million of depreciation and amortization; a non-cash derivative gain of $2.4 million; $3.3 million in integration expenses related to the reorganization and integration of recently acquired companies; and $886,000 in merger and acquisitions expenses, including investment banking advisory and legal fees.

The company’s earnings press release highlighted several key client wins during the quarter, and also provided positive guidance for the rest of the year.  Kit Digital chairman & CEO, Kaleil Isaza Tuzman said “As we move through the midpoint of Q3, we remain on track to exceed our original organic financial targets for fiscal 2010… We estimate our organic growth in the second quarter exceeded 50% on a year-on-year basis.”

Gavin Campion, president of KIT digital, said that the company is “committed to expanding our industry leadership position by going from our current estimated 15%-20% global market share to more than 50% over the next couple of years, by complementing strong organic growth with highly selective, accretive acquisitions.” Campion also said that the company continues to see opportunity in the mobile market. 

You can read the full Kit Digital earnings press release here.

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