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KIT digital Reports Record Q2 2011 Results

CZECH REPUBLIC -- (Marketwire) -- 08/09/11 -- KIT digital, Inc. (NASDAQ: KITD), a premium cloud-based software solutions and services provider for multi-screen video management and delivery, reported second quarter results for the period ended June 30, 2011. All figures are listed in U.S. dollars.

Q2 2011 & Outlook Highlights -- Revenue up 40% sequentially to record $48.2 million and up 109% over same year-ago quarter; -- Operating EBITDA up 35% sequentially to record $9.6 million and up 128% over same year-ago quarter; -- Added more than 35 net new clients during the second quarter, including Axel Springer, Channel 4, China United Television, a new major business unit of The Walt Disney Company, and RAI; -- Final phase implementation of 'Project Delta,' the major internal reorganization and cost-reduction initiative related to the integration of the acquisitions completed during the first half of 2011. Upon completion, Project Delta eliminates approximately $35 million of total costs from the business on an annualized basis; -- Large majority of remaining M&A-related restructuring and integration charges booked in Q2, with only $2 million expected to be booked in Q3 2011 and none in Q4 2011; -- Company is moving to a cash EPS reporting metric in the second half of 2011 and expects to be free cash-flow positive going forward -- reaching $2.5 million per month in cash-flow generation by the end of Q4; -- Reaffirmation of $210 million revenue guidance for 2011 and 23% operating EBITDA margin for full-year; Q3 2011 guidance of at least $61 million in revenues, representing a 40% annualized organic growth rate over Q2 2011; -- Revenue guidance of at least $300 million in 2012; -- Next generation KIT Video Platform to be unveiled at the International Broadcasting Convention (IBC) September 9-11 in Amsterdam. Q2 2011 Financial Results Revenue in the second quarter of 2011 increased to $48.2 million from $34.5 million in the first quarter of 2011, and from $23.1 million in the same quarter a year ago. The increase is attributed to both organic growth and the contribution of newly acquired companies.

The company's revenues are comprised of software-as-a-service (SaaS) license and usage fees, software set-up and maintenance fees, and professional services charges.

Revenue from the company's Europe, Middle East & Africa (EMEA) region constituted more than 50% of the total during the second quarter, with the remainder approximately split between the Americas and Asia-Pacific regions.

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