LONDON -- The shares of Blinkx (LSE: BLNX) surged 14 pence, or 21%, to 82 pence during early London trade this morning after the video-search company said its full-year sales could be ahead of target.
Blinkx reckoned turnover for the twelve months to March 2013 could now be in the range of $180m and $185m. The firm said trading during its third quarter had been "strong."
S. Brian Mukherjee, the chief executive of Blinkx, said:
In the second half, we continued to benefit from campaign spending in the US election cycle, which, in addition to the rapid customer adoption of our expanded offerings and strong secular trends within the industry, contributed to our growth. While our advertising revenues are transactional in nature, we remain confident in our outlook and prospects for the remainder of the year.
During November, Blinkx revealed half-year sales up 84% to $82m and adjusted interim profits up 60% to $7.8m. Annual results last May showed revenues up 73% to $114m and adjusted profits up 28% to $10.4m.
During 2008, Blinkx's revenues were just $6m and its losses were $7m. The company's rapid growth, however, has not translated into smooth share-price returns.
Indeed, after joining the market during 2007 at 45 pence, the price fell to as low as 12 pence during the banking crash. But since then, the price has rallied to as high as 158 pence, then slumped to as low as 33 pence, and today now tops 82 pence.
Blinkx's current market cap is now around 300 million pounds, which compares to possible pre-tax profits of about 10 million pounds for the current year. City forecasts for 2014 suggest pre-tax profits may by 17 million pounds.
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