KIT digital voices concern at WSJ coverage
11.30 Europe/London, November 29, 2011 By Julian Clover
KIT digital has reacted angrily to newspaper reports on the technology company’s growth prospects.
A weekend article in the Wall Street Journal said it was “difficult to judge the company’s underlying organic growth rate.” However, Kit digital maintains it has disclosed the current revenue contribution from every acquisition it has made over time.
A series of acquisitions made by Kit have included UK-based Megahertz Broadcast Systems, a $2.7m deal concluded at IBC 2010, and in April 2011 cloud based video provider ioko365 for US$79.4 million.
The Wall Street Journal article, headlined KIT Digital Gives Investors Plenty of Drama, also implied that founder Isaza Tuzman was arrested in Dubai “following a dispute with a lawyer there.” Kit digital says Tuzman was never arrested or detained at any time and the incident resulted from complaints by an Egyptian national that Tuzman had insulted his family honour.
Commenting on the article Tuzman said: “Some of the points made – on our limited history of operating profitably and the need for a business to prove growth credentials over the longer term, for example – were quite valid. However, the article regurgitated recent gossip, mixed fact and fiction, and ignored our positive accomplishments, all of which was disappointing.”
KIT digital reiterated its Q4 2011 guidance of at least $67 million in revenue, EBITDA of approximately $17.5 million and adjusted, or cash, earnings per share (EPS) of $0.33. The company expects to generate at least $2.5 million in free cash flow per month starting in December 2011.