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No doubt, restructuring costs can drag on. The 4m restructuring charge mentioned would still have to be paid for this financial year though, surely? So, stripping out the one off restructuring charge - Blinkx would actually be in operational cash profit for H2.
Restructuring costs are usually deducted from revenues. So, this would have made H2 revenues appear smaller.
Dallo, makes a good observation on iii regarding cash outflow for H2 2016. Following Blinkx's acquisition of AdKarma in December 2014 for $20m of which $15m was upfront and $5m to be paid on the 1st anniversary of the deal ( December 2015) in cash or shares, I am assuming that the $5m has been paid in cash as no RNS was issued regarding issue of new shares. Indeed if Blinkx had to paid $ 5m in shares now it would represent 4.5% of the shares in issue based on a current market cap of £77m. So we assumed Blinkx paid the $5m in cash in December 2015. Accordingly we can do the sums as follows $m Cash at 30th September 2015 82.34 AdKarma payment ( 5.00) Cash outflow from operations ( 1.34) ________ Cash at 31st March 2015 76.00 _________ So if I am doing the sums correctly we only had an operational cash outflow of $ 1.34m in the 6 months to 31st March 2015 . Am I missing something?
"4) If there truly are 40m of annualised costs savings on their way (albeit not all this new financial year), and we manage to keep sales flat (see point 1), we surely must return to profit this year even if only a third of those come through (need to be incremental year-on-year savings of course and not sure what savings were already in the yesterday’s figures) and much better profit the following year." This is the only reason I stay invested here and the 75million of new business generated in the last year (pretty good for basically a startup) I do think tosca are heavily leaning on Blinkx to strip out any unnecessary costs.
Any thoughts on their next move? My inkling is they are the brains behind the huge cost cutting exercise cutting being undertaken.
Interesting post from shroder on iii: Surely there is a more important stat. This is what Blinkx said at the six month figures: " Completed Group-wide restructuring at a cost of $1 million, which is expected to reduce fixed annualized operating expenses by over $15 million on a pro-forma basis, and better align the cost structure with market conditions and shifts in product mix. Today, they tell us: "As a result, the Company eliminated over $40 Million in annualized operating expenses, incurring approximately $4 Million in restructuring costs." That is a huge beneficial change in six months from an expected annualised $15m reduction to a $40m reduction. Obviously those benefits will only be seen going forward. If that $40m was carried to bottom line, the next six month figures could tell a completely different story even though the revenues have fallen. After all, it is about profit and not revenue.
As the old saying goes. Revenue is for vanity and profit is for sanity. H1 2016 EBITDA losses $7 million H2 2016 EBITDA losses $3-4 million Painstakingly slow progress. The second half drop off in revenues is obviously a concern but I wouldn't say Blinkx is a dead duck yet.
Rhythmmax looks to be performing well indeed.
www.rhythmone.com/rhythmbuzz/insights/2015-influencer-benchmarks-report
Rhythm one have just released their Influencer benchmarks report for 2015. Its well worth a read. I note they are no longer revealing the names of their clients in the case studies. https://www.rhythmone.com/rhythmbuzz/insights/2015-influencer-benchmarks-report