Vonetize, which provides digital video content on demand for smart devices and televisions, today published its far from impressive results for 2016, which included a going concern warning by its auditors. The company reported only $728,000 in revenue, 63% less than in 2015.
Vonetize attributes the decline in revenue to the expiration of its exclusive agreements with Samsung and VOD365.
Vonetize, led by chairman and CEO Noam Josephides, reported a $2 million gross loss, a $5.7 million operating loss, almost double its 2015 loss, and a $6 million net loss, 90% higher than its 2015 net loss, including a $1.7 million loss in the fourth quarter of 2016.The company had $2 million in cash as of the end of 2016.
The Vonetize share responded to the news with a 6% drop, completing a decline of over 60% since the company's TASE IPO only seven months ago. The company's market cap has shrunk to NIS 33 million, compared with NIS 100 million at the time of its IPO.
The company said that during 2016 and up until its financial statements were published, the number of special users of its SmartVOD services continued to grow. The company now has over seven million unique users, of whom two million are in Israel and over one million are in Brazil. Commenting on this, Josephides said, "Between the time we became a public company in August 2016 and the date on which the financial statements were published, we have traveled a long road in our business in Israel and overseas. We have signed important agreements, some of which are giving us an initial revenue backlog. The current global trends are increasing the need and demand for high-quality content, and we are prepared in all aspects to make important progress."
Published by Globes [online], Israel Business News - www.globes-online.com - on March 27, 2017
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