blinkx PLC Announces Interim Results for the Period Ended 30 September 2007

blinkx PLC Announces Interim Results for the Period Ended 30 September 2007

Strong Results for the Period, With Revenue 23% Ahead of the Top Analyst Forecast Driven by 280% Increase in Daily Searches and Significant Growth in Content Partner Base

blinkx's Interim Period Conference Call Will be Webcast Live at http://www.blinkx.com on 29 October 2007, at 9:30 A.M. GMT/5:30 A.M. EDT/2:30 A.M. PDT.

CAMBRIDGE, England and SAN FRANCISCO, California, October 29/PRNewswire-FirstCall/ -- blinkx PLC (BLNX.L), the world's largest video search engine,
today reported financial results for the period ended 30 September 2007.

Financial Highlights
Period from
23 April 2007
(incorp.) to
30 Sept 2007

Results in US$ ($'000s, except per share amounts) (unaudited)
US$'000

Revenues 2,953
Loss from operations before demerger / IPO costs(*) (2,288)
Loss for the period before demerger / IPO costs(*) (1,407)
Loss for the period (12,862)

Loss per share (cents)
Basic (5.62)
Adjusted (*) (0.62)

Cash used by operating activities excluding demerger
/ IPO costs(**) (2,047)
Cash used by operating activities (8,417)
Cash balance as of 30 September 2007 43,610

(*) Excludes demerger / IPO costs of $11.5 million.
(**) Excludes demerger / IPO costs. See Reconciliation of Net Cash
Provided by Operating Activites Excluding Demerger Costs.

Highlights:

- Strong revenues, 23% above the top analyst forecast for the 5.5 month
period ending 30 September 2007

- 280% growth in daily worldwide searches

- Daily searches average of 4.2 million in September

- 70% growth in content partner base to over 225 media organizations

- Strong growth in customer base, adding blue chip clients including
Ask.com, RealNetworks, Infospace and MediaCom

- 160% expansion of core index of video content; total hours indexed
exceeds 18.5 million

- Introduction of two new strategic technology offerings:

- AdHoc (including Viral)

- Native language search

- Successful demerger from Autonomy Corporation plc raising $50 million
in IPO

- Key hires in Sales and R&D in order to drive growth

Commenting on the interim results Suranga Chandratillake, founder and
CEO of blinkx, said:

"We are pleased to report a strong performance throughout our
initial reporting period, with revenues 23% ahead of the top analyst forecast
driven by significant growth in daily searches. Key strategic partnerships,
including Ask.com and RealNetworks, have established blinkx as the gold
standard for TV and video search on the Web and almost tripled our daily
searches. We have substantially built out our index of content, adding
high-profile media companies such as Kiplinger's and Michael Eisner's Vuguru
to our library. In addition, during the period we added two strategic
offerings to our technology portfolio which will promote usage throughout
Western Europe and drive advertising revenue worldwide."

Mr. Chandratillake continued: "The popularity of online video
is at an all time high, and we are seeing the proliferation of not only
user-generated content, but also professionally-produced, high-value
programming from established media companies, such as CBS, NBC and News Corp.
With 75% of US users watching or downloading Internet video, the exponential
growth in online video demands an advanced search function, and navigation is
a vital service which can be monetized through advertising. Having
established blinkx as the gold standard in online TV and video search, and
with the introduction of the AdHoc platform, blinkx is ideally positioned at
the intersection of content, search and advertising, and uniquely poised to
capitalize on the surging video advertising market."

Financial Highlights

For the period from 23 April 2007 (incorporation) to 30
September 2007, revenues totalled $3.0 million. Gross profit for the first
half of 2008 was $2.2 million, representing a gross margin of 74%. Net loss
for the period, before one-off costs related to the IPO and demerger, was
$1.4 million. Losses including one-off costs related to the demerger and IPO
totalled $12.9 million. Adjusted loss per share for the period, before
one-off costs related to the IPO and demerger was 0.62 cents. Loss per share
including one-off costs related to the demerger and IPO was 5.62 cents.
During the period blinkx raised $50.4 million in gross proceeds from an
initial public offering completed on 22 May 2007. Cash balance at 30
September 2007 was $43.6 million.

Customer and Business Developments

This first reporting period has seen significant growth. Since
its IPO in May 2007, strong demand for blinkx's unique, patented search
functionality has established blinkx as the gold standard in video search,
powering many of the most popular sites and portals on the Internet. Through
these strategic partnerships and increased consumer visibility, searches have
increased 280% since IPO to an average 4.2 million per day in September.
High-profile new syndication customers included Ask.com, RealNetworks and
InfoSpace. During the period blinkx also saw strong demand for its content
platform from media companies, expanding the roster of top-quality content
providers to over 220, including programming from CelebTV and Ministry of
Sound. blinkx's index of fully searchable online video has now surpassed 18.5
million hours.

Product and Technology Developments

During the period, blinkx introduced several new offerings
based on its industry-leading technology. Launched in June 2007, blinkx's
patented AdHoc platform delivers multi-modal contextually relevant video
advertising to capitalize on the flourishing market for online video
advertising, which is estimated to reach $4.3billion by 2011 (eMarketer), and
has attracted brand-name advertisers, including Nokia, BestBuy, GM and ABC.

In October 2007, blinkx announced native language search for
France, Germany and Spain. The pervasiveness of broadband in Europe has made
online video and TV content extremely appealing to local Internet users, and
blinkx is the first video search engine to address the Western European
market, indexing content from over 200 European sources and sites and making
more than 1 million hours of foreign language video fully searchable.

Company Developments

On the operational front blinkx made strategic hires to
support growth and new initiatives, increasing headcount to over 40
employees. Seasoned executives were added to drive content acquisition,
syndication partnerships, and build our advertising business.

During the period blinkx and its technological achievements
were recognized with a number of awards. blinkx.com was named one of Time
Magazine's 50 Best Websites of 2007 and was a finalist in CNET's annual
Webware Awards. The company was also named 2007 Rising Star of the Year at
Business XL's Company of the Year Awards.

About blinkx PLC

blinkx (London AIM: BLNX) is the world's most comprehensive
video search engine. Today, blinkx has indexed more than 18.5 million hours
of audio, video, viral and TV content, and made it fully searchable and
available on demand. blinkx's founders set out to solve a significant
challenge - as TV and user-generated content on the Web explode,
keyword-based search technologies only scratch the surface. blinkx's patented
search technologies listen to - and even see - the Web, helping users enjoy a
breadth and accuracy of search results not available elsewhere. In addition,
blinkx powers the video search for many of the world's most frequented sites.
blinkx is based in San Francisco and London. More information is available at
http://www.blinkx.com

BLINKX PLC
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
Results for the period from 23 April 2007 to 30 September 2007
(in thousands, except per share amounts)

Period from
23 April 2007
(incorp.) to
30 Sept 2007
(unaudited)
Note US$'000

Revenue 2,953
Cost of revenue (767)
Gross profit 2,186

Operating Expenses 3
Research and developmentt 1,314
Sales and marketing 2,567
Administrative expenses 593
Loss from operations before demerger / IPO
costs(*) (2,288)
Demerger / IPO costs 11,455
Loss from operations (13,743)

Finance income (net) 881

Loss before taxation (12,862)

Income tax charge 4 -

Loss for the period before demerger / IPO
costs(*) (1,407)

Loss for the period attributable to equity
holders (12,862)

Loss per share (cents)
Basic (5.62)
Adjusted(*) (0.62)

(*)Excludes demerger / IPO costs of $11.5 million

BLINKX PLC
CONSOLIDATED BALANCE SHEET (UNAUDITED)
As at 30 September 2007
(in thousands)
As at
30 Sept 2007
Note US$'000
ASSETS

Non-current assets
Property, plant and equipment 480
Other intangibles 4
484
Current assets
Trade receivables 1,194
Other assets 1,654
Cash and cash equivalents 43,610
46,458
Total assets 46,942

EQUITY AND LIABILITIES

Capital and reserves
Share capital 6 5,483
Share premium 49,126
Stock compensation reserve 5,562
Currency translation reserve 1,685
Merger reserve (4,323)
Retained earnings (12,763)
44,770

Current liabilities
Trade and other payables 2,172
2,172

Total liabilities 46,942

BLINKX PLC
CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)
Results for period from 23 April 2007 to 30 September 2007
(in thousands)

Period from
23 April 2007
(incorp.) to
30 Sept 2007
(unaudited)
US$'000
CASH FLOWS FROM OPERATING ACTIVITIES
Loss from on-going operation (2,288)
Loss from demerger / IPO related costs (11,455)
Loss from operations (13,743)
Adjustments for
Depreciation and amortization 147
Share based compensation 5,676
Foreign currency movements (3)

Operating cash flows before movements in
working capital (7,923)

Changes in operating assets and
liabilities (net of impact of
acquisitions):
Receivables (1,194)
Other assets (1,472)
Payables 2,172
Cash used by operations (494)
Net cash provided by operating activities (8,417)

CASH FLOWS FROM INVESTMENT ACTIVITIES
Interest received 700
Purchase of property, plant and equipment (632)
Net cash generated by investment
activities 68

CASHFLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of shares 50,384
Net cash provided by financing activities 50,384

Net increase in cash and cash equivalents 42,035

Cash and cash equivalents at beginning of
period -
Effect of foreign exchange rate changes 1,575
Ending cash and cash equivalents 43,610

RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES
EXCLUDING DEMERGER COSTS

Period from
23 April 2007
(incorp.) to
30 Sept 2007
(unaudited)
US$'000

Net cash provided by operating activities (8,417)
Adjustment for:
One-off share based compensation (5,085)
Loss from demerger / IPO costs 11,455
Net cash provided by operating activities,
excluding demerger / IPO costs (2,047)

BLINKX PLC
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
For the period from 23 April 2007 to 30 September 2007
(in thousands)

Ordinary Redeemable Stock
share share Share compensation
capital capital premium reserve Sub-total
US$'000 US$'000 US$'000 US$'000 US$'000
Balance as at
23 April 2007 - - - - -
Issue of shares 5,483 100 49,126 - 54,709
Capital
contribution - - - - -
Shares redeemed - (100) - - (100)
Current period
losses - - - - -
Exchange
differences on
translation - - - - -
Share based
payments - - - 5,562 5,562
Balance as at
30 Sept 2007 5,483 - 49,126 5,562 60,171

Sub-total Currency Merger Retained
forwarded translation reserve earnings Total
US$'000 US$'000 US$'000 US$'000 US$'000
Balance as at
23 April 2007 - - - - -
Issue of shares 54,709 - (4,323) - 50,386
Capital
contribution - - - 99 99
Shares redeemed (100) - - - (100)
Current period
losses - - - (12,862) (12,862)
Exchange
differences on
translation - 1,685 - - 1,685
Share based
payments 5,562 - - - 5,562
Balance as at
30 Sept 2007 60,171 1,685 (4,323) (12,763) 44,770

BLINKX PLC

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

1.Basis of preparation

The interim financial statements have been prepared using
accounting policies consistent with International Financial Reporting
Standards ("IFRSs") as adopted for use in the EU. While the financial
information included in this interim announcement has been compiled in
accordance with the recognition and measurement principles of IFRSs, this
announcement does not itself contain sufficient information to comply with
IFRSs. These interim financial statements do not constitute statutory
financial statements within the meaning of section 240 of the Companies Act
1985.

The information for the period from incorporation through 30
September 2007 is unaudited, but reflects all normal adjustments which are,
in the opinion of management, necessary to provide a fair statement of
results and the company's financial position for and as at the period
presented. The results of operations for the period ended 30 September 2007
are not necessarily indicative of the operating results for future operating
periods.

2.Significant accounting policies

The interim financial statements have been prepared under the
historical cost convention.

The same accounting policies, presentation and methods of
computation are followed in these interim financials statements as will be
applied for the preparation of the Group's annual audited financial
statements. The Group's accounting policies are available from the investor
relations page of the Company's website at http://www.blinkx.com/investors.

3.Share-based payments

Included within operating expenses are the following amounts
in respect of share based payments:

Period from
23 April 2007
(incorp.) to
30 Sept 2007
(unaudited)
US$'000

Research and development 320
Sales and marketing 228
Administrative expenses 42
Demerger / IPO costs 5,233
5,823

4.Taxation

There is no income tax charged for the Interim Period.

5.Loss per share

The loss per ordinary share and diluted loss per share are
equal because share options are only included in the calculation of diluted
earnings per share if their issue would decrease the net profit per share or
increase the net loss per share. The calculation is based on information in
the table shown below.

Period from
23 April 2007
(incorp.) to
30 Sept 2007
(unaudited)
US$'000
Earnings
Loss for the period (12,862)
Loss for the period excluding demerger / IPO
costs of $11,455k (1,407)

Number of shares (number)
Weighted average number of shares since 23
April 2007 228,685,216

6.Share capital

Major movements in share capital in the period include the
issuance of 277,470,635 ordinary shares in relation to the demerger from
Autonomy Corporation plc and equity financing in May 2007. In addition as
part of the demerger process one redeemable share was issued in April 2007
which was subsequently redeemed in May 2007 prior to the demerger. Other
issuances of shares relate to the exercise of employee share options.

7.Related party transactions

There are no related party transactions.

8.De-merger from Autonomy Corporation plc

The demerger of the blinkx business from Autonomy Corporation
plc and its affiliates was completed on 21 May 2007. This was followed by an
IPO on the AIM market of the London Stock Exchange. This transaction was
accounted for as a reverse acquisition.

9.Approval of interim financial statements

The interim accounts were approved by the directors on 26 October 2007.

INDEPENDENT REVIEW REPORT TO BLINKX PLC

We have been engaged by the company to review the interim set
of financial statements in the half-yearly financial report for the period
from 23 April 2007 to 30 September 2007 which comprises the consolidated
income statement, the consolidated balance sheet, the consolidated cash flow
statement, the reconciliation of net cash provided by operating activities
excluding demerger costs, the consolidated statement of changes in equity and
related notes 1 to 9. We have read the other information contained in the
half-yearly financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in the interim
set of financial statements.

This report is made solely to the company in accordance with
International Standard on Review Engagements 2410 issued by the Auditing
Practices Board. Our work has been undertaken so that we might state to the
company those matters we are required to state to them in an independent
review report and for no other purpose. To the fullest extent permitted by
law, we do not accept or assume responsibility to anyone other than the
company, for our review work, for this report, or for the conclusions we have
formed.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and
has been approved by, the directors. The directors are responsible for
preparing the half-yearly financial report in accordance with the AIM Rules
of the London Stock Exchange.

As disclosed in note 1, the annual financial statements of the
Group will be prepared in accordance with IFRSs as adopted by the European
Union. The interim set of financial statements included in this half-yearly
financial report has been prepared in accordance with the accounting policies
the group intends to use in preparing its next annual financial statements.

Our responsibility

Our responsibility is to express to the Company a conclusion
on the interim set of financial statements in the half-yearly financial
report based on our review.

Scope of Review

We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, "Review of Interim
Financial Information Performed by the Independent Auditor of the Entity"
issued by the Auditing Practices Board for use in the United Kingdom. A
review of interim financial information consists of making inquiries,
primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. A review is substantially
less in scope than an audit conducted in accordance with International
Standards on Auditing (UK and Ireland) and consequently does not enable us to
obtain assurance that we would become aware of all significant matters that
might be identified in an audit. Accordingly, we do not express an audit
opinion.

Conclusion

Based on our review, nothing has come to our attention that
causes us to believe that the accompanying interim financial information is
not prepared, in all material respects, in accordance with the AIM Rules of
the London Stock Exchange.

Deloitte & Touche LLP
26 October 2007
Chartered Accountants and Registered Auditor
Cambridge, United Kingdom

For further information please contact:

Financial Media Contacts
Edward Bridges/Haya Chelhot
Financial Dynamics
Tel: +44-(0)20-7831-3113

Analyst and Investor Contact
Matthew Service, CFO
blinkx PLC
Tel: +1-415-615-1513

Source: blinkx PLC

For further information please contact: Financial Media Contacts, Edward Bridges/Haya Chelhot, Financial Dynamics, Tel: +44-(0)20-7831-3113; Analyst and Investor Contact, Matthew Service, CFO, blinkx PLC, Tel: +1-415-615-1513

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