KIT digital (KITD) Q2 2012 Earnings Call August 14, 2012 5:00 pm ET Executives Murray Arenson - Senior Vice President of Investor Relations & Corporate Initiatives Barak Bar-Cohen - Chief Executive Officer, Chief Administrative Officer and Director Fabrice Hamaide - Chief Financial Officer Murray Arenson Analysts Richard Ingrassia - Roth Capital Partners, LLC, Research Division Todd Van Fleet - First Analysis Securities Corporation, Research Division Darren Aftahi - Northland Capital Markets, Research Division Steven B. Frankel - Dougherty & Company LLC, Research Division Presentation Operator
It is now my pleasure to turn the call over to our host, Murray Arenson, Managing Director of Financial Strategy. Please go ahead, sir.Murray Arenson Thank you, Alicia. Thank you, everyone, for joining us for our second quarter 2012 conference call to review our financial results, our strategy, our operations and our outlook. With me today on the call are Barak Bar-Cohen, our Chief Executive Officer; and Fabrice Hamaide, our Chief Financial Officer. The format of our call today will be as follows: Barak will offer some comments on the scope and depth of our achievements internally over the past 3 months, along with some operational and financial highlights. Fabrice will then provide a more detailed review of the quarter's results and related financial activities and metrics, along with an update regarding our financial outlook. Then Barak will have some final thoughts regarding our strategy and opportunity. Finally, we'll open up the call for questions and answers. And with that, I will turn the call over to Barak. Barak Bar-Cohen Thank you, Murray, and thank you, everyone, for joining us on our second quarter 2012 earnings conference call. Let me begin by saying that we have achieved much in a short amount of time, thanks to a revitalized executive team, a reconstituted board of directors and, most importantly, the passion and hard work of our dedicated employees around the world. Now beginning in April, we launched what became a series of 48-hour sprints to tackle multiple discrete challenges the company was facing, issues such as liquidity issues, legal issues, strategic process and operational and financial controls. Now the management team prioritized each period's task and concentrated our energies entirely on completing the most pressing tasks. Our business has now settled into a much more normalized operating rhythm, and I am happy to say that the drive and discipline of those first few weeks is still very much a part of our culture. We took actions to resolve the immediate challenges facing our business. Now these actions reinforce our organization's core principles: a commitment to cutting-edge technology, a customer-focused service mentality and a belief in the power of video.
Now as reported in our 10-Q filing, this quarter illustrates the continuing transformation of our business and sharper focus on our core value proposition of delivering IP video software and services to leading broadband media companies around the world. Now by broadband media companies, we mean the world's leading telcos, network operators, broadcasters and key brands now leveraging IP video to increase their market presence. Our value proposition for that core customer base is grounded in a combination of software, which is our Cosmos video platform; and services, which is managed services, to operate deployed systems; and professional services to execute new deployments and ongoing project work.Among the industry leaders that we serve today in this market are companies such as AT&T, Mediaset, BSkyB, Channel 4 and Sky Italia. Our unique combination of software and services is unmatched in the industry and will be the core of our future growth. Now this quarter featured new business to customers in Turkey, Thailand, Australia, Mexico, the United States, Italy, the U.K. and the Middle East, just to highlight a few. In addition to new business, we accomplished much in these past few months. We completed the divestiture of our noncore Content Solutions business. We reduced low-margin hardware business in the broadcast space. We completed the acquisition of Hyro, providing essential strength to the AsiaPac team. We raised over $29 million in much needed capital. We moved the corporate headquarters to New York City. We hired a new CFO sitting by my side with strong turnaround and financial operating experience. We appointed a new CTO, Mark Christie, with strong platform and broadband media deployment expertise. We implemented a new system for cash management and budgeting and forecasting. We signed several major new clients around the world. And, we added 4 new board members, including a new nonexecutive chairman, a new Audit Committee chairman and representatives of 2 major shareholders. Read the rest of this transcript for free on seekingalpha.com