KIT digital (NASDAQ: KITD), a global provider of video asset management solutions for multi-screen IP-based delivery, narrowed its losses in the third quarter as revenues grew on new contract wins and recent acquisitions.
For the third quarter, net loss was $8.0 million, or $0.34 per basic and diluted share, compared to net loss of $11.1 million, or $1.65 per share, in the same period last year.
The most recent quarter included $5.1 million in non-cash charges, including $4.5 million in integration expenses related to recent acquisitions.
During the third quarter, operating EBITDA, an adjusted measure, increased 376% to a record $4.4 million, or $0.19 per basic share, year-over-year.
Revenue in the period jumped 151% to $27.7 million from the same quarter a year earlier. Sales from the company's Europe, Middle East & Africa (EMEA) region constituted approximately 44% of the total during the quarter, with approximately 36% from the Asia-Pacific and 20% from the Americas.
Sales were no doubt positively affected by a record number of more than 45 new client contract wins during the quarter, including Malaysian cable operator Astro, pharma company AstraZeneca (NYSE:AZN) and Billabong, with estimated average monthly revenue per client in excess of $23,000. The company's client roster now totals over 1,300 customers across 40 countries.
The company said it will continue to pursue an acquisitive growth strategy, and is even considering more "transformative" acquisition opportunities, where the company explained, it could acquire a top competitor and significantly expand its market share. It said it raised $96 million through an equity financing recently for this purpose.
For the full year 2010, the company expects to report revenue exceeding $100 million, increasing more than 109% over 2009, and operating EBITDA of approximately $18 million, up 267% over the previous year.
Kit said that it will look to further expand into Brazil, China and other parts of East Asia, as its primary strategy for growth in 2011.
Cash and equivalents at September 30, 2010 totaled $50.1 million.
The company's end-to-end software platform solutions allow companies to acquire, manage and distribute video assets across the computer, mobile devices, and IPTV-enabled television sets. Clients include The Associated Press, BBC, Best Buy, Bristol-Myers Squibb, Disney-ABC, FedEx, General Motors and Google, among many others.
Kit's stock was up nearly 4% on Monday, trading at $12.56 at market close.