The galloping performance of video search engine specialist Blinkx has experienced a set back according to its full year prelims, which show “disappointing” revenues that are below market expectations.
The company expects FY11 revenues (to March 31 2012) of £114m. Even though this would be a 72% rise, it is lower than market expectations of £121.5m revenue. On the positive side, adjusted operating profit is expected to be marginally ahead of expectations of £10.3m.
With two acquisitions completed during the year (see Growing Blinkx expands again) it looks like there has been a combination of acquisition and organic growth. However, its most recent acquisition, of Prime Visibility Media Group in November, may be a factor in the slower than anticipated growth. The purchase added search engine optimisation functionality, which is useful but not a standout feature even for a company in the video search space. You can see what some HotView readers thought in responses to the Why Blinkx shares halved post. Blinkx has stumbled over the last few months, so the full year results which are due in May will make interesting reading and hopefully shed some light on what is happening inside this fast moving company.