Sizmek Inc (NASDAQ:SZMK) Shows Strong Core Product Grow In Recent Earnings Report

Sizmek Inc (NASDAQ:SZMK) released earnings for the fiscal fourth-quarter and year-end 2014. The company produces multi-screen ad campaigns and global open ad management. Revenues for the fourth quarter came in at $48.9 million, a 3% increase over the fourth-quarter of 2013. Core products were responsible for 77% of those revenues and that is an increase of 24%. EBITDA were $11.5 million which is an 11% increase for the same-period in 2013.

Have analyst identified a ongoing trend in SZMK? 

Core Products

Sizmek Inc (NASDAQ:SZMK)’s core products were the stars of the report. Those include mobile, video, services and data driven products. Mobile revenues grew 62% when compared to the fourth quarter of 2013 and data driven products grew at a clip of 73%. In-stream video revenues also grew well at a 51% increase over the same period. Flash based rich media lagged at 34% growth but is currently being removed from the model.

The company sold its Digital Generation TV business and received $78.5 million in cash and stock for the operation. Cash and equivalents increased to $90.7 million and Sizmek Inc (NASDAQ:SZMK) has no long-term debt on its balance sheet. They also approved a $2 million stock buyback program that executed in the fourth quarter of 2014.

Full Year

For the fiscal year 2014 the company pulled in EBITDA of $24.8 million which was a 18% improvement over 2013’s profits. Core products sales grew 30% for the year and were 74% of the total revenue generated in the period. They released guidance for 2015 also and estimated revenue to be between $178 and $183 million. Sizmek Inc (NASDAQ:SZMK) provides digital advertising campaigns for agencies and individual advertisers worldwide. The company pioneered the first digital campaigns and has expanded those to include mobile operations. The serve more than 1.4 trillion impressions a year and operate in 60 countries.

Technicals

The stock gapped-up to its current position and is a dangerous situation. Momentum has slowed and it failed to take out the top at $8.14. This might indicate a back-fill is in the cards before it can make another attempt at its highs.

About the Author

Barry is a senior journalist at Us Markets Daily. He reports, shoots and edits many of his own stories by himself.

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