Click here to close now.




















Welcome!

News Feed Item

Kitara Media Reports Second Quarter 2014 Financial Results

JERSEY CITY, N.J., Aug. 15, 2014 /PRNewswire/ -- Kitara Media Corp ("Kitara Media") (OTCBB: KITM), a leading digital media and technology company providing video solutions to advertisers, digital marketers and publishers, today reported financial results for the second quarter ended June 30, 2014.

Video Advertising Solutions.

In the second quarter, Kitara Media remained focused on advancing the business strategy according to plan by delivering mobile and multiscreen video capabilities for advertisers, engaging strategic acquisition opportunities, and addressing industry changes associated with new standards in the online video advertising industry.

"We have made significant investments across the business and advanced our Propel+ technology platform to deliver a mobile solution that will expand revenue opportunities and markets. In addition, technology enhancements were made to embrace new viewability, performance and safety metrics," said Bob Regular, CEO of Kitara Media. "The online video advertising market showed mixed results in second-quarter as the industry deployed new standards intended to increase the accountability, transparency and performance of video advertising. In the short-term, however, these macro changes have created adjustment challenges in the quarter for us to meet advertiser and publisher requirements. While we had to sacrifice revenue and margin in the interim, we adapted quickly to implement the right changes and set the foundation for growth with new standards and mobile."

Business Highlights

The following are some of the highlights Kitara Media achieved in the second quarter:

  • Completed Mobile and Multi-screen advertising capabilities of the Propel+ Platform
  • Completed the integration of proprietary and third party technology systems and measurement into the Propel+ Platform to enable viewability measurement, ad safety firewalls, and advanced ad performance measurement
  • Completed the integration of the HealthGuru platform into the Propel+ Platform
  • Completed a new sophisticated reporting and data insights layer into the Propel+ Platform to enhance margin improvement, targeting and ad campaign performance
  • Expanded the sales and client management team to rapidly grow advertisers and web site publishers in line with new standards

Second Quarter Financial Results

Consolidated revenue for the three months ended June 30, 2014 decreased by $289,000 to $5.2 million as compared to $5.5 million for the three months ended June 30, 2013. Consolidated revenue for the six months ended June 30, 2014 increased by $1.7 million to $12.1 million as compared to $10.4 million for the six months ended June 30, 2013.

Consolidated margins for the three months ended June 30, 2014 decreased by $900,000 to $836,000 as compared to $1.7 million for the three months ended June 30, 2013. Consolidated margins for the six months ended June 30, 2014 decreased by $930,000 to $2.1 million as compared to $3 million for the six months ended June 30, 2013.

Consolidated net loss for the three months ended June 30, 2014 increased by $3.6 million to a net loss of $3.4 million as compared to a net income of $261,000 for the three months ended June 30, 2013. Consolidated net loss for the six months ended June 30, 2014 increased by $6.1 million to a net loss of $6 million as compared to a net income of $120,000 for the six months ended June 30, 2013.

Earnings before interest, taxes, depreciation and amortization ("EBITDA") for the three months ended June 30, 2014 decreased by $3.2 million to negative $2.9 million as compared to a positive $342,000 for the three months ended June 30, 2013. EBITDA for the six months ended June 30, 2014 decreased by $5.6 million to negative $5.2 million as compared to positive $357,000 for the six months ended June 30, 2013.

Further details concerning the results of operations for the three months ended June 30, 2014 are contained in a Quarterly Report on Form 10-Q which Kitara Media filed with the Securities and Exchange Commission.

About Kitara Media

Kitara Media is a leading digital media and technology company providing video solutions to advertisers, digital marketers and publishers. With nearly 500 million monthly video ad views, Kitara Media delivers strong engagement for advertisers, high revenues for publishers, as well as improved user experience with PROPEL+, an internally developed proprietary video ad technology platform. Kitara Media owns and operates several online media sites including Healthguru.com and Adotas.com. The company is headquartered in Jersey City, NJ. For more information visit http://www.kitaramedia.com.

Forward-Looking Statements:

Certain information and statements contained in this press release, including those regarding Kitara Media's capital structure, ability to execute its operating plan, anticipated financial flexibility and other statements that are not statements of historical fact, are forward-looking statements within the meaning of federal securities laws. These statements may be identified, without limitation, by the use of forward-looking terminology such as "anticipates", "expects," "will" or comparable terms or the negative thereof. Such statements are based on management's current estimates, assumptions that management believes to be reasonable, and currently available competitive, financial, and economic data as of the date hereof and we undertake no obligation to update any such statements to reflect subsequent changes in events or circumstances. Forward-looking statements are inherently uncertain and subject to a variety of events, factors and conditions, many of which are beyond the control of Kitara Media and not all of which are known to Kitara Media, including, without limitation those risk factors described from time to time in Kitara Media's reports filed with the SEC. Among the factors that could cause actual results to differ materially are Kitara Media's: loss of key advertising customers; inability to acquire new advertising customers; inability to expand its video content library; inability to protect its intellectual property; inability to comply with the covenants in its credit facility; inability to obtain necessary financing or enter into equity arrangements with existing or new institutional shareholders; inability to execute its acquisition strategy; inability to effectively manage its growth; failure to effectively integrate the operations of acquired businesses; competition; loss of key personnel; increases in costs of operations; continued compliance with government regulations; and general economic conditions.

Non-GAAP Financial Measures

To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. generally accepted accounting principles ("GAAP"), Kitara Media reports EBITDA, which are non-GAAP financial measures. Kitara Media calculates EBITDA by taking net income/(loss) and adding back depreciation, amortization, interest expense, stock-based compensation, and taxes less interest income. Kitara Media calculates adjusted EBITDA as EBITDA plus merger expenses. Kitara Media uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Kitara Media believes that these measures provide useful information about operating results, enhances the overall understanding of past financial performance and future prospects, and allows for greater transparency with respect to key metrics used by management in its financial and operational decision making. The non-GAAP financial measures should be considered in addition to results and guidance prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. The non-GAAP financial measures included in this press release have been reconciled to the nearest GAAP measure in the table following the financial statement attached to this press release.


Three Months
Ended June 30,

Six Months
Ended June 30,


2014

2013

2014

2013

    Revenue

$5,230

$5,519

$12,175

$10,428

    Cost of revenue

4,394

3,783

10,059

7,382

Gross Profit

836

1,736

2,116

3,046

GP as % of revenue

16%

31%

17%

29%






Operating expenses





    Employee Expenses

2,453

1,001

4,690

2,016

    Related party expenses

-

69

-

154

    Other operating expenses

1,549

324

3,005

519

    Depreciation and amortization

115

81

225

237

Total operating expenses

4,117

1,475

7,920

2,926






Operating income (loss)

(3,281)

261

(5,804)

120

Interest Expense

(69)

-

(156)

-

Income (loss) before income taxes

(3,350)

261

(5,960)

120

Income taxes

15

-

16

-

Net income (loss)

$(3,365)

$261

$(5,976)

$120






EBIDTA (a non-GAAP measure)

(2,924)

342

(5,266)

357






Net income (loss)

$(3,365)

$261

$(5,976)

$120

Depreciation and amortization

115

81

225

237

Interest expenses, less other income

69

-

156

-

Stock compensation expense

242

-

313

-

Taxes

15

-

16

-

EBITDA (a non-GAAP measure)

$(2,924)

$342

$(5,266)

$357

Logo - http://photos.prnewswire.com/prnh/20131120/NY20744LOGO

 

 

SOURCE Kitara Media Corp.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today the Containers & Microservices Bootcamp, being held November 3-4, 2015, in conjunction with 17th Cloud Expo, @ThingsExpo, and @DevOpsSummit at the Santa Clara Convention Center in Santa Clara, CA. This is your chance to get started with the latest technology in the industry. Combined with real-world scenarios and use cases, the Containers and Microservices Bootcamp, led by Janakiram MSV, a Microsoft Regional Director, will include presentations as well as hands-on...
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes ab...
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of tech...
Everyone talks about continuous integration and continuous delivery but those are just two ends of the pipeline. In the middle of DevOps is continuous testing (CT), and many organizations are struggling to implement continuous testing effectively. After all, without continuous testing there is no delivery. And Lab-As-A-Service (LaaS) enhances the CT with dynamic on-demand self-serve test topologies. CT together with LAAS make a powerful combination that perfectly serves complex software developm...
In today's digital world, change is the one constant. Disruptive innovations like cloud, mobility, social media, and the Internet of Things have reshaped the market and set new standards in customer expectations. To remain competitive, businesses must tap the potential of emerging technologies and markets through the rapid release of new products and services. However, the rigid and siloed structures of traditional IT platforms and processes are slowing them down – resulting in lengthy delivery ...
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
Skeuomorphism usually means retaining existing design cues in something new that doesn’t actually need them. However, the concept of skeuomorphism can be thought of as relating more broadly to applying existing patterns to new technologies that, in fact, cry out for new approaches. In his session at DevOps Summit, Gordon Haff, Senior Cloud Strategy Marketing and Evangelism Manager at Red Hat, discussed why containers should be paired with new architectural practices such as microservices rathe...
U.S. companies are desperately trying to recruit and hire skilled software engineers and developers, but there is simply not enough quality talent to go around. Tiempo Development is a nearshore software development company. Our headquarters are in AZ, but we are a pioneer and leader in outsourcing to Mexico, based on our three software development centers there. We have a proven process and we are experts at providing our customers with powerful solutions. We transform ideas into reality.
Any Ops team trying to support a company in today’s cloud-connected world knows that a new way of thinking is required – one just as dramatic than the shift from Ops to DevOps. The diversity of modern operations requires teams to focus their impact on breadth vs. depth. In his session at DevOps Summit, Adam Serediuk, Director of Operations at xMatters, Inc., will discuss the strategic requirements of evolving from Ops to DevOps, and why modern Operations has begun leveraging the “NoOps” approa...
Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is designed for their business. In 2015, organizations such as United Airlines, Sony...
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Red Hat is investing in Tesora, the number one contributor to OpenStack Trove Database as a Service (DBaaS) also ranked among the top 20 companies contributing to OpenStack overall. Tesora, the company bringing OpenStack Trove Database as a Service (DBaaS) to the enterprise, has announced that Red Hat and others have invested in the company as a part of Tesora's latest funding round. The funding agreement expands on the ongoing collaboration between Tesora and Red Hat, which dates back to Febr...
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of ...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.