BLNX.L Share News (BLNX)

(ShareCast News) - Blinkx disappointed investors with a trading update that dashed hopes that the third quarter return to profitability would continue into the final months of the financial year.For the full year to the end of March, the digital advertising technology specialist said it expected to generate revenues of $165-170m, having made $91.4m in the first half-year.Ahead of full year results in mid_May, Blinkx said 2016 adjusted losses before interest, tax, depreciation and amortisation (EBITDA loss) were pencilled in at $10-11m.Although at the half year the AIM-listed company recorded a $6.8m EBITDA loss, in January it had boasted that increased product revenues and cost cutting had led to profitability ahead of management expectations and break-even adjusted EBITDA.But the fourth quarter had seen what the company called "anticipated fourth quarter seasonality", which combined with a continued acceleration of the withdrawal from non-core product lines to 30% of total revenues by year-end, compared with over 50% in the previous year.Blinkx is now increasingly focused on programmatic advertising, where revenues have grown 66% in the year such that programmatic and video, which includes mobile, now constitute over 50% of total revenues, with recent rebranding under the RhythmOne brand.Cash at year end was $76m (£53.5m), which compares to a market cap of £72m.Chief executive Brian Mukherjee said: "FY2016 has been a transformational year for the industry and the company. We believe that we now have the technology, talent and relationships in place to scale both organic and inorganic growth as the Industry continues to evolve and consolidate."Through strong cost discipline and a strategic focus on Core mobile, video and programmatic products we are now well aligned with broader structural market trends."