Cloud-based software provider KIT digital has reported a lower net loss for the first quarter ended 31 March 2011, compared with the same quarter of 2010, and has seen sales surge.
The company, whose clients include Google and Best Buy Co, has reported that net loss available to common shareholders for Q1 2011 was $12.5m (£7.6m), or $0.34 per share, compared with a net loss available to common shareholders of $18.44m, or $1.33 per share, for Q1 2010.
Revenue for Q1 2011 was $34.45m, compared with $17.36m for the same quarter of 2010, an increase of 98%. This was due to increased demand for KIT's services as online video becomes more popular.
Loss from operations for Q1 2011 was $14.65m compared with a loss from operations of $7.08m for Q1 2010.
Based on preliminary unaudited information, KIT digital management expects to report revenue for Q2 2011 of approximately $48m.
"We were very pleased with our first quarter 2011 results," said Kaleil Isaza Tuzman, chairman and CEO of KIT digital, "particularly when you consider the lower digital media usage levels and consequent negative seasonality of Q1 over Q4 throughout the industry.
"With the acquisitions of Kewego, KickApps, Kyte, Polymedia and ioko, we are also excited to have successfully completed the three-plus year aggressive consolidation phase of our corporate development plan. Going forward, we expect the pace of our M&A activity to slow dramatically, as we optimise what we have acquired and focus on organic growth."