TEL AVIV, Israel, April 13, 2016 /PRNewswire/ --
Somoto (TASE: SMTO), a global software company specializing in online marketing and distribution services for software and applications in the Windows and Mac PC, Android and iOS Mobile platforms, following the completion of the Tersertude Ltd. acquisition in January 2016, announced its preliminary and early estimates for its unaudited and non-reviewed financial results for first quarter of 2016. The Company estimates that total revenues in the quarter were at least $8.9 million, and EBITDA was at least $3.1 million (representing approximately 35% of revenue).
In addition, the Company's cash balance, including restricted cash, amounted to approximately $13.5 million and net cash (net of bank credit) amounted to approximately $6.2 million.
Ben Garrun, CEO of Somoto, commented, "The preliminary results indicate continued growth in revenue, profit and cash generation for our Company. The mobile sector, which demonstrated rapid growth and revenues of $4 million in 2015, will continue to serve as a growth engine for us. In addition, the video sector which is also showing rapid growth, will make an important contribution to our results, mainly due to the acquisition of Tersertude during the first quarter of 2016. The business strategy of Somoto, includes diversifying the various sources of revenue, and therefore, alongside our organic growth, we intend to continue to work to make attractive acquisitions in the online marketing sphere. We believe that maintaining our high growth, as well as our growth in revenue and profitability, will lead to ongoing shareholder value creation."
In the fourth quarter of 2015, and in comparison with the third quarter of 2015, the Company reported revenues of $6.7 million, an increase of 8%; operating income before amortization (EBITDA) of $2.1 million, an increase of 10%; net profit of approximately $600 thousand, an increase of 1,400%; and operating cash flow of $2.3 million, a decrease of 23%.
In addition, the Company reported operating cash flows in 2015 in the amount of $7.4 million and declared a dividend of $0.5 million and is considering distributing an additional dividend of $0.5 million during the current year.
About Somoto Ltd.
Somoto is a global software company, specializing in online marketing, and marketing, distribution, development and installation of Intelligent Auto (Smart Installer) applications from various advertisers, solutions for monetization and solutions for tracking and reporting for the app installation industry for personal computers (PC) and mobile devices. All this, through the use of advanced technologies developed by the Company.
Following Somoto's growth strategy and in order to strengthen the Company's operations for the Mac, Genieo Innovation was acquired in 2014 and became a wholly owned subsidiary of Somoto. Genieo develops advertising technology, monetization and targeted advertising for the Mac environment. The Company's flagship product is Smart Home, an innovation prize winner, based on patent-protected artificial intelligence technology, which adapts content to user preferences. The company generates revenues based on user's search queries from an intelligent homepage and from smart advertising and marketing on this page.
In 2014 the company acquired Tabatoo which became a wholly owned subsidiary of Somoto. Tabatoo operates in the mobile space and its acquisition was part of the Company's strategy to penetrate this base, as well as expand its business partners.
In 2016, the Company acquired Tersertude Ltd. ("Terser"), which became a wholly owned subsidiary of Somoto. Terser offers advertisers and content owners in the mobile and the desktop space with monetization solutions based on direct video advertising through providers of Internet advertising space or through third parties. The acquisition of Terser is part Somoto's vision to gain a foothold and expand its activities in video and mobile advertising, which it has identified as synergistic and attractive, demonstrating rapid growth rates. Terser is expected to be an important growth engine for Somoto over coming years.
Somoto operates through a large number of partners and distributes a large number of applications. Somoto was founded in 2009 and its executive offices are located in Tel Aviv.
The Company's estimates which appear above, and in particular, the Company's assessments in connection with its prospects and results of operations and with respect to the results of operations for Q1 2016, its expected investments, its financial position, business strategy, goals and management plans (including development plans and objectives relating to the company's products and services) and the realization of prospects and its business plans, are considered forward looking statements as defined under The Israeli Securities Law, 1968-5738, based on a number of assumptions and estimations regarding the Company's operational performance, business strategy, its current and future environment and the Company's business, which the Company expects to operate in the future as well as information received from the Company's business partners.
All forward-looking statements are intended to reflect the Company's expectations concerning future events, as of the date of this notice. These estimates may not be realized in whole or in part, or may materialize in a substantially different manner than anticipated by the Company. The Company will not be responsible for any future changes that might occur and shall have no liability to update any changes of circumstances, future events or conditions with respect to forward-looking information about the Company's estimates are based above and below. Also, it is hereby clarified that the Company's performance in the past cannot be the basis of the Company's performance in the future.
Assi Itshayek, Chief Financial Officer