does this sound like a company going under????
Home| Portfolio| Market Currents| Investing Ideas| Dividends & Income| ETFs| Macro View| ALERTS| PRO|6
cooldoggi
Velti Plc Management Discusses Q2 2013 Results - Earnings Call Transcript
Aug 20 2013, 19:20 | 4 comments | about: VELT BOOKMARK / READ LATER
In support of that, I would like to point to some of our key customer retention and new business wins. In the U.K., we re-signed contracts with a number of key partners, including Vodafone and Channel 5, and launched mobile marketing campaigns for several media and broadcast companies. In the U.S, we renewed our relationship with one of the largest U.S. retailers, who operates over 1,000 locations and uses geolocation at mobile targeting [ph] and notification to drive in-store traffic, customer acquisition and gift registry.
In India, we closed more than 20 new deals, including a program with Nokia to allow Nokia to interact with its 70 million mobile subscribers using Velti's platform. And in China, we signed our largest deal in over a year of securing a $650,000 program with China Unicom.
We are pleased with the progress since some of our new initiatives, including Velti Pay, which quickly built into a $5 million annualized run rate of new clients, following its successful June launch and our mobile customer acquisition business, is expected to continue doubling revenues quarter-over-quarter into 2014.
Our leadership team is aligned and running at full speed to ensure disciplined execution of the company's strategy and plans to become cash generative. During the quarter, we conducted a review of the various cost centers and business lines in the company, which enabled us to reduce operating expenses by $40 million on an annualized basis compared with Q1. Key elements included aligning functions more closely with the business units in reducing overhead, exiting business lines that were generating significant losses for the company and consolidating facilities.
We are also on track with the initiative launched in Q4 to reduce our annual capital expenditures by more than $40 million compared to last year. In order to better align our organization with our business focus, we restructured our North America sales organization with our business units to create greater alignment between the business and the sales teams, as we continue to see growth in North America. We also streamlined the organization by reducing the number of Senior Vice President-level executives and placing greater decision-making responsibility with local account teams who are closer to the customer. We are significantly restructuring our U.S. advertising business and have exited our mobile ad network business, Velti Media, which was generating significant losses for the company.
Additionally, we recently engaged in investment banker to sell the remainder of our U.S. advertising business, also known as Mobclix, as well as look at other strategic opportunities for the company.
We are continuing to streamline the organization during Q3, and focusing in on our core opportunities for growth within our business lines, as well as core geographies in the U.K., Western Europe, North America, India and China. Our core theme moving forward is making sure we are pursuing good businesses in good geographies with good companies. To that end, we have exited our enterprise business, and are seeking buyers for our supply-side Ad Exchange business while focusing our sales teams at our Mobile Marketing business, and winning and renewing programs with premier global brands such as Vodafone, Nokia, Coca-Cola and Toyota. We are investing in new products and services to help customers capitalize on the unique capabilities of mobile devices to support their efforts to acquire, engage and retain customers. We have launched a new version of our mGage ignite platform to give customers greater control over managing programs that support customers life cycle management and long-term loyalty. Our new release of the mGage Communicate Pro platform is currently being rolled out simultaneously in the U.S. and U.K., and the platform brings new functionality, which allows brands to conduct interactive mobile marketing campaigns with a global reach.
As we move into the second half of the year, we are more disciplined, more focused organization. We have worked to put much in the past behind us, exiting certain business lines and geographies. We are committed to aligning the organization with the opportunities going forward and doing all we can to deliver value to customers and shareholders
AI
