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KIT digital, Inc. Message Board

  • b_roo_2009 b_roo_2009 Jan 25, 2010 8:49 AM Flag

    Kaleil Shareholder Letter

    I hope this message finds you well.

    We are pleased to share with you that on Thursday, January 21st, KIT digital (www.kitd.com, NASDAQ: KITD) raised US$31.3 million through an offering of 2,980,000 shares at $10.50 per share pursuant to a registration statement on Form S-3 filed with the U.S. Securities and Exchange Commission. We also granted our U.S. underwriters a 30-day over-allotment option to purchase up to an additional 447,000 shares of common stock.

    KIT digital is a leading global provider of Internet Protocol (IP) video asset management solutions, enabling enterprise clients to acquire, manage and distribute video assets across personal computers, mobile devices, and IPTV-enabled television sets. Our client base includes more than 600 enterprise customers, including The Associated Press, Bristol-Myers Squibb, Disney-ABC, General Motors, Google, IMG Worldwide, Intel, News Corp, Telefonica, the U.S. Department of Defense, Verizon and Vodafone.

    ROTH Capital Partners acted as the lead underwriter for the common stock offering, with Merriman Curhan Ford & Co., ThinkEquity, Panmure Gordon & Co., and Maxim Group acting as co-managers.

    We plan to use a significant portion of the net proceeds of the offering to finance accretive acquisitions of competitive businesses with complementary sales vertical and/or geographic reach, with a lesser portion used to strengthen our balance sheet and/or for the re-purchase of certain outstanding warrants issued in prior private placements.

    We are also pleased to announce that today, January 25th, we were accepted for trading on the Main Market of the Prague Stock Exchange (also under the symbol "KITD"). This will function as a dual listing to our current NASDAQ Global Market quotation in the United States.

    The Prague Stock Exchange (PSE) is a natural secondary listing for us, given our global headquarters in Prague and the significant business we have developed in the Eurozone (60%+ of total revenues). While we are globally oriented with enterprise clients in nearly 40 countries, the PSE listing underscores our commitment to the EMEA region and provides a gateway for European and regional Central and Eastern European (CEE) investment funds that have express interest in our business, but are limited to investing in European-listed securities.

    KBC Financial Products and Patria Finance acted as financial advisors to the company with respect to the PSE listing, and Patria Finance is acting as lead market-maker for the PSE-listed KIT digital common stock--which are fully fungible with the NASDAQ-listed shares.

    KIT digital recently announced preliminary results for 2009 (revenues of US$47 million with 10%+ operating EBITDA margins) as well as management guidance for 2010 (revenues of US$75 million with 17.5% operating EBITDA margins). For Q4 2009 just completed, we disclosed preliminary results of US$16 million in revenues with 15%+ operating EBITDA margins.

    Pro forma of our recent stock offering, we have approximately 13.8 million shares outstanding.

    Conference Call
    We invite you to join us on a conference call today to discuss the current state of our business, the recent stock offering and the intended use of proceeds:

    Date: Monday, January 25, 2010
    Time: 11:30 a.m. Eastern time (4:30 p.m. GMT)
    Dial-in # (North America): +1-800-895-0198
    Dial-in # (outside North America): +1-785-424-1053
    Conference ID: 7KITDIGITAL

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