Video search engine blinkx (LON:BLNX) rallied 8% after giving investors a heads-up that its first half revenues are expected to double year on year.
First half revenues are expected to reach US$27 million, while operating profit is also set to beat expectations at US$1 million compared to current analyst consensus of US$0.63 million.
Since the year ended 31 March 2010 the company's cash has increased by approximately US$2 million to around US$17 million, reflecting the positive cash profile of the group.
The group said that the number of video searches and ads served also grew significantly.
According to eMarketer, spending on video advertising will grow 500% over the next four years to US$11.3 billion.
“This powerful momentum underscores the vitality of our business model.
“Over the last six months, blinkx has continued to experience strong user demand, with ever increasing numbers of searches placing blinkx.com in the Quantcast.com Top 100 sites.
“We also continue to exploit new applications and platforms that represent additional markets for our existing search engine and content partnerships,” said founder and chief executive of blinkx Suranga Chandratillake.
The company added that it remained confident about its outlook.
During the period, blinkx secured premium content partnerships deals with the BBC, AccuWeather and Internet Video Archive.
The company has also established strategic entry-points in the mobile market, including the launch of m.blinkx.com and distribution deals with Evri, Mobica, and Samsung which brought blinkx to iPhone and Android devices.