Velti writing down $111M in receivables, looking to sell Mobclix

|By:, SA News Editor

Velti (VELT) blames the write-down on "a deterioration in collections" from customers in Greece and Cyprus; Deloitte has been hired to assist with collection attempts. The company has already divested assets in international markets with very high collection times.

No formal guidance is given in the Q2 report, but Velti says it's looking to "become profitable and cash flow positive in 2014." The company previously guided for 2013 free cash flow of $5M-$15M.

Velti says it has hired an i-bank to find a buyer for its Mobclix U.S. mobile ad network, and is exploring "other strategic opportunities" for the unit. VentureBeat recently reported Mobclix developer partners are up in arms over delinquent payments that may total $30M.

Q2 free cash flow (exc. acquisition-related payments) was -$3.3M, and the company's cash position stood at $19.4M. Velti has already gone through with major job cuts. Can the company avoid Chap. 11?

Shares -31% AH. CC underway.

Q2 results, PR