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Velti sees strong growth in US and UK ad markets as Q1 FY12 sales rise 75% to $51.8 million

Cash flow breakeven expected in Q3

Velti sees strong growth in US and UK ad markets as Q1 FY12 sales rise 75% to $51.8 million
Mobile advertising and marketing solutions company Velti (NASDAQ:VELT) has announced its Q1 FY12 results for the period ending 31 March 2012.

Revenue was $51.8 million, up 75 percent year-on-year.

Adjusted EBITDA (effectively cash flow) was $4.6 million, up 260 percent.

The company reaffirmed its commitment to breakeven in terms of operating cash flow in Q3 2012.

It narrowed its quarterly net loss to $8.8 million, compared to $15.9 million a year ago.

Bigger, better

"Velti continued to demonstrate strong growth across products and geographies in the first quarter and we believe that 2012 will be a great year for us," said CEO Alex Moukas.

"We continue to focus our efforts on delivering results to our customers and rapidly building a global technology platform that maximises the opportunity that the mobile channel presents for marketers and advertisers through data analysis, optimisation and long-term engagement with customers via the mobile channel."

All systems go

In terms of breaking down the company's activity, mobile advertising accounted for 21.6 percent of revenue, with the remaining 78.4 percent due to mobile marketing activity.

Margins across both sides of the business increased year-on-year.

Grow was particularly strong in the Americas, which accounted for 26 percent of revenue, with the UK taking up 31 percent, and the rest of Europe 29 percent.

The company ended the quarter with cash and equivalents of $41 million, down from the $75.8 million with which it ended 2011.

[source: Velti (PDF)]
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