Quantcast
Last updated on April 23, 2014 at 21:24 EDT

blinkx plc Announces Results for the Six Months Ended 30 September 2012

November 14, 2012

LONDON, and SAN FRANCISCO, California, November 14, 2012 /PRNewswire/ –

Reports record results for first half, revenues up 84% to $82.0m, with

adjusted* profits before taxation of $8.4m

blinkx’s interim period conference call will be webcast live at

http://www.blinkx.com on

14 November, 2012, at 9:30 a.m. GMT/4:30 a.m. EST/1:30 a.m. PST

blinkx PLC (BLNX.L), the world’s largest video search engine, today reported financial
results for the six months ended 30 September 2012.

Financial Highlights

                                             Six months to  Six months to
                                              30 September   30 September
                                                      2012           2011
                                               (unaudited)    (unaudited)
                                                      $000           $000
        Revenues                                    81,971         44,569
        Profit from operations - adjusted*           7,855          4,892
        Profit from operations                       1,966          1,421
        Profit before taxation - adjusted*           8,370          4,953
        Profit before taxation                       2,481          1,482
        Earnings per share                           Cents          Cents
        Basic - adjusted*                             2.38           1.64
        Basic                                         0.75           0.63
        Diluted - adjusted*                           2.34           1.60
        Diluted                                       0.74           0.62

*Adjusted for acquisition costs of $1.4m (2011:$1.9m), exceptional charges of $1.8m
and amortization of purchased intangibles of $2.6m (2011: $1.6m)

Business Highlights

        - Revenues increased by 84% to $82.0m, from $44.6m in H1 2012
        - Adjusted* profit from operations increased by 61% to $7.9m compared with $4.9m
          for H1 2012
        - Adjusted* profit before tax of $8.4m, compared with $5.0m for H1 2012
        - Cash balance was $41.6m up from $38.4m on 31 March 2012
        - Sales and product integrations of Burst and PVMG acquisitions are ahead of
          schedule
        - Introduced next generation blinkx.com, designed to enhance video discovery and
          viewing, optimized for mobile use, with powerful personalization capabilities and
          social graph integration
        - Established new distribution agreements with Sony and Popbox in the Connected
          TV space
        - Secured content partnerships including Kiplinger, Hulu, and Fox Sports
        - Added new brand advertising clients including Google, Asda and Gillette

Commenting on the period, S. Brian Mukherjee, CEO of blinkx, said today: “This has
been an exceptional first half for blinkx. The business demonstrated strong underlying
growth, which was accelerated by the ahead-of-schedule integration of Burst and PVMG. The
progress of this integration enabled us to serve a greater number of high value ads to a
wider audience at robust monetization rates.

During the period, we also benefitted from increased advertising spend allocated to
specific events – the summer Olympics and the US presidential elections. These one-time
events provided us with a better-than-expected boost to revenues during the traditionally
slower summer months.

We have continued to build on our leadership position in the online video ecosystem
over the past six months, increasing our audience reach through distribution deals with
Sony and Popbox, while adding premium content partners including Kiplinger, Hulu and Fox
Sports. This compelling combination of top tier professional content and broad
distribution with our patented video advertising platform attracted new and repeat marquee
brand advertisers, such as Microsoft, Volkswagen and Colgate.

This half, we were also proud to unveil the next generation of our flagship video
search and discovery site, blinkx.com. With an eye to the flourishing mobile market, the
new site was built from the ground up for use on connected devices, with a simple, elegant
user interface that is optimized for video discovery and viewing, and offers easy
integration with social networks across desktop, tablet and mobile devices.”

Outlook

Commenting on current trading, Mr Mukherjee added: “There are powerful secular trends
driving the growth of video advertising: the proliferation of broadband and connected
devices, and the accelerating migration and consumption of video online. This market
momentum underscores the vitality of the sector and our business model. Overall trading
remains in line with the comments made in our trading update of 29 October 2012 and based
on our performance this period and the fundamentals of the sector, we remain confident in
our outlook for the rest of the year.”

Customer and Business Development

In the first half of our financial year, blinkx’s patented video advertising platform
continued to attract global brand advertisers. With the Internet claiming an increasingly
significant share of ad budgets, leaders from across a breadth of industries, such as
Gillette, Microsoft and Toyota capitalized on blinkx’s unique offering, booking campaigns
through top global agencies, including Carat, Starcom and Neo Ogilvy.

blinkx also progressed its cross-platform distribution strategy during the period,
striking new deals in the Connected TV space with Sony and Popbox, and introducing the new
blinkx.com, built using responsive design and optimized for use on mobile devices.

On the content front, blinkx expanded its roster of premium media partners, signing
content agreements with a diverse array of industry leaders including Hulu, Kiplinger and
Fox Sports, among others.

Management Changes

On 19 July 2012, blinkx announced that Suranga Chandratillake, the Founder and Chief
Executive Officer of the Company, was assuming the role of President and Chief Strategy
Officer and would continue to serve as an Executive Member on its Board. Subhransu
(“Brian”) Mukherjee, who was the Chief Operating Officer of blinkx, was appointed CEO of
blinkx and an Executive Member of its Board of Directors effective as of that date.

blinkx also announces that Jonathan Spira has announced his intention to step down as
Chief Financial Officer of the Company with effect from 30 November 2012. Mr. Spira has
served as the head of blinkx’s global finance team since 2008, and has been instrumental
in building the company into a dynamic and profitable, $150+m revenue enterprise. The
Board extends its gratitude to Mr. Spira for his contribution to growth of the Group and
wishes him the best.

Edward Reginelli, aged 41, currently Senior Vice President and Group Controller at
blinkx, will step up to succeed Mr. Spira as Chief Financial Officer and they have been
working together to ensure a smooth transition.

Mr. Reginelli joined blinkx in April 2012. He has over 15 years of experience,
managing all aspects of financial accounting, controls, analysis, operations and reporting
in complex corporate environments. Before joining blinkx, he was Vice President of Finance
and Corporate Controller at Purple Communications, Inc., a company that specialized in
technology enabled interpreting and telecommunication services. Prior to this he served as
Chief Financial Officer and a Director of Burke Industries, Inc. and held other senior
financial positions at Compass Aerospace, PPG Industries and Nestle USA.

Mr. Reginelli holds a B.S in Business Administration and Accounting from John Carroll
University, Ohio and is a registered Certified Public Accountant.

The Company confirms there is no other information required to be disclosed pursuant
to Schedule 2 paragraph (g) of the AIM Rules.

Products

In September, blinkx unveiled an open beta of the next generation of its flagship
product, blinkx.com. The new site is designed to enhance the video discovery and viewing
experience for audiences, with powerful personalization and recommendation capabilities,
and easy integration across users’ social graph. It was built from the ground up for use
on mobile devices, with a simple, elegant user interface that is touch-optimized for easy
navigation. New features of the next-generation blinkx.com include customized channels,
Facebook and Twitter integration and a unique “Pause and Pick Up” capability, which allows
users to start watching video on one device, hit pause and pick it up again at the same
point on a different device.

During the period, blinkx made significant progress on the integration of advertising
technology and processes from Burst Media and Prime Visibility Media Group (PVMG). This
integration allows the group to function as a single entity, giving it access to a broader
and more substantial set of products and solutions for its advertisers, publishers and
content partners. This enables the company to apply its patented Concept Recognition
Engine (CoRE) to both video and non-video assets across all sources, thereby serving the
most relevant ad, at the optimum time, with the highest monetization rate, to a wider
audience.

Financial Highlights

For the six months ended 30 September 2012 (H1 2013), revenues totaled $82.0 million,
an increase of 84% over the $44.6 million in revenues reported for the 6 months ended 30
September 2011 (H1 2012). Adjusted net profit before acquisition, exceptional and
integration costs and amortisation of purchased intangibles for H1 2013 was $8.6 million
(H1 2012: $5.7 million). Net profit for H1 2013 was $2.7 million (H1 2012: $2.2 million).
Earnings per share for H1 2013 was 2.38 cents adjusted basic (H1 2012: 1.64 cents), 0.75
cents basic (H1 2012: 0.63 cents), 2.34 adjusted fully diluted (H1 2012: 1.60 cents) and
0.74 cents fully diluted (H1 2012: 0.62 cents). blinkx’s cash balance at 30 September 2012
was $41.6 million (30 September 2011: $52.9 million).

About blinkx PLC

blinkx (London AIM: BLNX) is the world’s most comprehensive video search engine.
Today, blinkx has indexed more than 35 million hours of audio, video, viral and TV
content, and made it fully searchable and available on demand. blinkx’s founders set out
to solve a significant challenge – as TV and user-generated content on the Web explode,
keyword-based search technologies only scratch the surface. blinkx’s patented search
technologies listen to – and even see – the Web, helping users enjoy a breadth and
accuracy of search results not available elsewhere. In addition, blinkx powers the video
search for many of the world’s most frequented sites. blinkx is based in San Francisco and
London. More information is available at http://www.blinkx.com

BLINKX PLC

CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED)

Results for the six months to 30 September 2012

(in thousands, except per share amounts)

                                                            Six months to  Six months to
                                                             30 September   30 September
                                                                     2012           2011
                                                              (unaudited)    (unaudited)
                                                      Note           $000           $000
        Revenue: continuing operations                             81,971         44,569
        Cost of revenue                                9         (39,903)       (18,139)
        Gross profit                                               42,068         26,430
        Operating expenses
                            Research and development              (6,726)        (4,033)
                            Sales and marketing        9         (22,814)       (15,506)
                            Administrative expenses               (4,673)        (1,999)
        Profit from operations before acquisition
        and exceptional costs*                                      7,855          4,892
        Amortisation of purchased intangibles                     (2,642)        (1,550)
        Acquisition and exceptional costs                         (3,247)        (1,921)
        Profit from operations                                      1,966          1,421
        Other income                                                  505              -
        Net investment revenue                                         10             61
        Profit before taxation                                      2,481          1,482
        Tax                                            3              235            711
        Profit for the period attributable to
        equity holders of the parent before
        acquisition and exceptional costs*                          8,605          5,664
        Profit for the period attributable to
        equity holders of the parent                                2,716          2,193
        Earnings per share (cents)                                  Cents          Cents
        Adjusted basic*                                4             2.38           1.64
        Basic                                          4             0.75           0.63
        Adjusted diluted*                              4             2.34           1.60
        Diluted                                        4             0.74           0.62

*Adjusted for acquisition costs of $1.4m (2011:$1.9m), exceptional charges of $1.8m
and amortization of purchased intangibles of $2.6m (2011: $1.6m

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(UNAUDITED)

For six months ended 30 September 2012

                                                                  Six months to  Six months to
                                                                   30 September   30 September
                                                                           2012           2011
                                                                    (unaudited)    (unaudited)
                                                                           $000           $000
        Profit for the period                                             2,716          2,193
        Exchange difference on translation of foreign operations            301        (1,358)
        Total comprehensive income for the period                         3,017            835

BLINKX PLC

CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)

As at 30 September 2012

(in thousands)

                                                         As at         As at
                                                  30 September  30 September
                                                          2012          2011
                                                   (unaudited)   (unaudited)
                                            Note          $000          $000
        ASSETS
        Non-current assets
        Goodwill                                        49,080        26,779
        Intangible assets                               27,654        20,813
        Property, plant and equipment                    2,014         1,801
        Other receivables                                  250           250
        Deferred tax asset                               8,498         2,107
                                                        87,496        51,750
        Current assets
        Trade receivables                               24,147        19,613
        Other receivables                                3,515         3,756
        Cash and cash equivalents                       41,627        52,928
                                                        69,289        76,297
        Total assets                                   156,785       128,047
        LIABILITIES
        Current liabilities
        Trade and other payables                      (25,762)      (21,452)
        Non-current liabilities
        Deferred tax liability                         (1,732)             -
        Other payables                                   (453)         (263)
                                                       (2,185)         (263)
        Total liabilities                             (27,947)      (21,715)
        Net assets                                     128,838       106,332
        Shareholders' equity
        Share capital                        5           6,845         6,713
        Share premium account                5         101,809        87,072
        Shares to be issued                  6             750           831
        Stock compensation reserve                      12,880        10,906
        Currency translation reserve                   (7,536)       (8,900)
        Merger reserve                                  33,089        33,047
        Retained loss                                 (18,999)      (23,337)
        Total equity                                   128,838       106,332

BLINKX PLC

CONDENDSED CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)

For the six months to 30 September 2012

(in thousands)

                                                                 Six months to  Six months to
                                                                  30 September   30 September
                                                                          2012           2011
                                                                    (unaudited)    (unaudited)
                                                                          $000           $000

        CASH FLOWS FROM OPERATING ACTIVITIES
        Profit from operations                                          1,966          1,421
        Adjustments for:
                        Depreciation and amortization                   4,206          2,345
                        Share based payments                              942            494
                        Other income                                      505              -
                        Foreign exchange gains / (losses)                  11           (61)
        Operating cash flows before movements in working capital        7,630          4,199
        Changes in operating assets and liabilities:
                        Increase in trade and other receivables       (1,743)        (4,160)
                        Increase in trade and other payables              375          2,110
        Net cash generated by operations                                6,262          2,149
        Income taxes paid                                             (1,555)              -
        Net cash generated by operating activities                      4,707          2,149
        CASH FLOWS FROM INVESTMENT ACTIVITIES
        Interest received                                                  10             61
        Purchase of property, plant and equipment and intangibles     (1,948)        (2,288)
        Acquisitions, net of cash acquired                                  -            705
        Net cash used by investment activities                        (1,938)        (1,522)

        CASHFLOWS FROM FINANCING ACTIVITIES
        Net payments on finance lease                                    (99)           (45)
        Proceeds from issuance of shares                                  261            623
        Net cash generated by financing activities                        162            578
        Net increase in cash and cash equivalents                       2,931          1,205
        Beginning cash and cash equivalents                            38,406         52,809
        Effect of foreign exchange on cash and cash equivalents           290        (1,086)
        Ending cash and cash equivalents                               41,627         52,928

BLINKX PLC

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

For the six months to 30 September 2012

(in thousands)

                                                              Share  Shares         Stock
                                                     Share  premium   to be  compensation
                                                   Capital  account  issued       reserve
                                                      $000     $000    $000          $000
        Balance as at 1 April 2011                   6,398   86,443       -         9,968
        Issue of shares                                315      629       -             -
        Current period profit                            -        -       -             -
        Exchange differences on translation              -        -       -             -
        Equity to be issued - acquisition related        -        -     831             -
        Share based payments                             -        -       -           938
        Balance as at 30 September 2011              6,713   87,072     831        10,906
                                                              Share  Shares         Stock
                                                     Share  premium   to be  compensation
                                                   Capital  account  issued       reserve
                                                      $000     $000    $000          $000
        Balance as at 1 April 2012                   6,837  101,552     754        11,938
        Issue of shares                                  8      257     (4)             -
        Current period profit                            -        -       -             -
        Exchange differences on translation              -        -       -             -
        Share based payments                             -        -       -           942
        Balance as at 30 September 2012              6,845  101,809     750        12,880

Table continued below…

                                                     Currency
                                                  Translation   Merger  Retained
                                                      reserve  reserve  earnings         Total
                                                         $000     $000      $000          $000
        Balance as at 1 April 2011                    (7,542)  (4,323)  (25,530)        65,414
        Issue of shares                                     -   37,370         -        38,314
        Current period profit                               -        -     2,193         2,193
        Exchange differences on translation           (1,358)        -         -       (1,358)
        Equity to be issued - acquisition related           -        -         -           831
        Share based payments                                -        -         -           938
        Balance as at 30 September 2011               (8,900)   33,047  (23,337)       106,332
                                                     Currency
                                                  Translation   Merger  Retained
                                                      reserve  reserve  earnings         Total
                                                         $000     $000      $000          $000
        Balance as at 1 April 2012                    (7,837)   33,089  (21,715)       124,618
        Issue of shares                                     -        -         -           261
        Current period profit                               -        -     2,716         2,716
        Exchange differences on translation               301        -         -           301
        Share based payments                                -        -         -           942
        Balance as at 30 September 2012                -7,536   33,089   -18,999       128,838

BLINKX PLC

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

(UNAUDITED)

1. Basis of preparation

The condensed interim financial statements have been prepared using accounting
policies and methods of computation consistent with those used in the audited statutory
financial statements for the year ended 31 March 2012 and International Financial
Reporting Standards (“IFRSs”) as adopted for use in the European Union. While the
financial information included in this interim announcement has been compiled in
accordance with the recognition and measurement principles of IFRSs, this announcement
does not itself contain sufficient information to comply with IFRSs. These interim
financial statements do not constitute statutory financial statements within the meaning
of section 435 of the Companies Act 2006.

Statutory financial statements for the year ended 31 March 2012 are available on the
blinkx plc’s (the “Group’s”) website http://www.blinkx.com and have been filed with the
Registrar of Companies. The Group’s auditor issued a report on those financial statements
that was unqualified, did not contain a statement under section 498(2) or section 498(3)
of the Companies Act 2006 and did not draw attention to any matters by way of emphasis.

The information for the six month period ended 30 September 2012 is unaudited, but
reflects all normal adjustments which are, in the opinion of management, necessary to
provide a fair statement of results and the Group’s financial position for and as at the
period presented. The results of operations for the period ended 30 September 2012 are not
necessarily indicative of the operating results for future operating periods.

The directors have considered the financial resources of the Group and the risks
associated with doing business in the current economic climate and believe the Group is
well placed to manage these risks successfully. The directors have reviewed management’s
business plan setting out key business assumptions and considered it to be reasonable and
are satisfied that the Group has adequate resources to continue in operational existence
for the foreseeable future being a period of no less that 12 months from the date of
signing of this interim report. Accordingly, they continue to adopt the going concern
basis in preparing this interim announcement.

2. Share-based payments

Included within operating expenses are the following amounts in respect of share based
payments:

                                                   Six months to  Six months to
                                                    30 September   30 September
                                                            2012           2011
                                                     (unaudited)    (unaudited)
                                                            $000           $000
        Sales and marketing                                  566            312
        Research and development                             247            115
        Administrative expenses                              129             67
                                                             942            494

3. Taxation

Tax for the period is charged at a composite tax rate of -9.4 percent (half year to 30
September 2011: -48.0 percent, year to 31 March 2011 : -101.9 percent), representing the
best estimate of the average annual effective income tax rate expected for the full year
plus the effect of discrete items recognised in the period.

4. Earnings per share

The calculation of the basic and diluted earnings per share is based on the following
information.

                                                                  Six months to  Six months to
                                                                   30 September   30 September
                                                                           2012           2011
                                                                    (unaudited)    (unaudited)
                                                                           $000           $000
        Earnings
        Adjusted* profit (used in calculation
         of basic and diluted loss per share)                             8,605          5,664
        Profit (used in calculation of basic
         and diluted loss per share)                                      2,716          2,193
                                                                         Number         Number
        Number of shares
        Weighted average number of shares for
         the basic earnings per share                               361,728,496    345,815,693
        Weighted average number of shares for
         the diluted earnings per share                             368,280,824    353,518,944

*Adjusted for acquisition costs of $1.4m (2011:$1.9m), exceptional charges of $1.8m
and amortization of purchased intangibles of $2.6m (2011: $1.6m)

5. Share capital

The issuance of shares in the period relates to the issuance of 1,637 shares to the
shareholders of Burst Media Corporation and 481,943 shares on the exercise of employee
share options.

6. Shares to be issued

The shares to be issued reserve relates to shares which are expected to be issued to
Burst shareholders, as part of the consideration, who have not yet submitted the paperwork
to effect the exchange of Burst shares for blinkx shares.

7. Acquisition and exceptional costs

Acquisition costs of $1.4 million and exceptional charges of $1.8 million have been
separately identified on the face of the income statement. These charges included post
acquisition remuneration, one time write down of a prepaid distribution charge, onerous
facility, severance and professional services.

8. Acquisition of subsidiaries

On 9 November 2011 the group acquired 100% of the issued share capital of Prime
Visibility Media Group Inc., an online advertising network and digital advertising agency
headquartered in New York, USA. The integration of the blinkx video search engine with
PVMG’s text search platform will enable the group to tap into a new audience of
intent-driven consumers and deliver TV-style brand advertising to them.

Fair values of purchased assets and liabilities:

                                   Provisional   Adjustment to
                                     FV @ date            FV @        Final
                                   of purchase   November 2012   Fair Value
                                     $ million       $ million    $ million
        Intangibles                       12.6                         12.6
        Other assets                       5.7                          5.7
        Deferred tax asset                 1.7           (0.2)          1.5
        Cash                               0.7                          0.7
        Trade & other payables           (7.3)                        (7.3)
        Total identifiable assets         13.4           (0.2)         13.2
        Goodwill                          21.4             0.2         21.6
        Total consideration               36.0 *             -         36.0 *

*The fair value of the $36.0 million consideration paid comprises of: cash paid of $31
million; deferred consideration provisionally determined of $3.8 million; and prepaid post
acquisition remuneration of $1.2 million.

The $0.2 million adjustment to fair values relates to a deferred tax asset valuation
adjustment.

The measurement period relating to the PVMG acquisition is now completed so no further
purchase adjustments will be posted to the fair values.

9. Standardisation of expense classifications on integration

As part of the process of integrating those companies acquired in fiscal year 2012,
the company has been aligning its accounting policies to ensure consistent expense
classifications across the expanded Group. Whilst this exercise has been concluded for the
current period certain prior year marketing and advertising expenses may not have been
consistently classified according to blinkx accounting policies. This expense
reclassification will not impact revenue, operating profits or earnings per share as
reported. Management is currently working to analyse the full effect of the expense
classification differences in the prior period, but prior to this announcement it has been
impracticable to determine fully the extent of the reclassifications required. Management
intends to disclose the outcome of this exercise, to the extent material, in its annual
report for the year ended 31 March 2013.

10. Related party transactions

For the purposes of IAS 24 Related Party Disclosures, the directors are considered to
be the Group’s key management personnel. Their remuneration is disclosed within the
Directors’ Report as reported in the Statutory financial statements for the year ended 31
March 2012. There were no other related party transactions in either the current year or
prior year.

INDEPENDENT REVIEW REPORT TO BLINKX PLC

We have been engaged by the company to review the interim set of financial statements
in the half-yearly

financial report for the six months ended 30 September 2012 which comprises the
condensed consolidated income statement, the condensed consolidated statement of
comprehensive income, the condensed consolidated balance sheet, the condensed consolidated
cash flow statement, the condensed consolidated statement of changes in equity and related
notes 1 to 10. We have read the other information contained in the half-yearly financial
report and considered whether it contains any apparent misstatements or material
inconsistencies with the information in the interim set of financial statements.

This report is made solely to the company in accordance with International Standard on
Review Engagements (UK and Ireland) 2410 “Review of Interim Financial Information
Performed by the Independent Auditor of the Entity” issued by the Auditing Practices
Board. Our work has been undertaken so that we might state to the company those matters we
are required to state to them in an independent review report and for no other purpose. To
the fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the company, for our review work, for this report, or for the conclusions we
have formed.

Directors’ responsibilities

The half-yearly financial report is the responsibility of, and has been approved by,
the directors. The directors are responsible for preparing the half-yearly financial
report in accordance with the AIM Rules of the London Stock Exchange.

As disclosed in note 1, the annual financial statements of the group are prepared in
accordance with IFRSs as adopted by the European Union. The interim set of financial
statements included in this half-yearly financial report have been prepared in accordance
with the accounting policies the group intends to use in preparing its next annual
financial statements.

Our responsibility

Our responsibility is to express to the company a conclusion on the interim set of
financial statements in the half-yearly financial report based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410 “Review of Interim Financial Information Performed by
the Independent Auditor of the Entity” issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information consists of making
inquiries, primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. A review is substantially less in scope
than an audit conducted in accordance with International Standards on Auditing (UK and
Ireland) and consequently does not enable us to obtain assurance that we would become
aware of all significant matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that
the interim set of financial statements in the half-yearly financial report for the six
months ended 30 September 2012 is not prepared, in all material respects, in accordance
with the AIM Rules of the London Stock Exchange.

Deloitte LLP

Chartered Accountants and Statutory Auditor

Cambridge, United Kingdom

14 November 2012

        For further information please contact:

        Financial Media Contacts
        Edward Bridges/Charles Palmer
        FTI Consulting
        (UK) +44(0)20-7831-3113

        NOMAD and Broker for blinkx plc
        Charles Lytle/Christopher Wren
        Citigroup Global Markets Ltd
        (UK) +44(0)20-7986-9756

        Analyst and Investor Contact
        Jonathan Spira, CFO
        blinkx plc
        (US) +1-415-655-1450

SOURCE blinkx plc


Source: PR Newswire