Adaptive Medias Inc (OTCMKTS:ADTM) reported that revenue in 4Q2015 came at $1.686 million compared to $1.848 million in the same period, a year ago. However, the revenue came better than the company’s projections as given on March 14, 2016. This decline in revenue can primarily be attributed to the phase out of Flash, leading in revamps across the ad tech industry.
It all started when Alphabet Inc (NASDAQ:GOOGL) initially reported that it would automatically commence pausing Flash content in Chrome browser. This matter impacted almost all of the firm’s advertising associates who have had to cope up with a rapid shift from Flash to HTML5.
The firm is using its HTML5 player to resolve this problem; however it is still dependent to an extent on its associates’ ability to accept an HTML5 solution. By 1H2016, Adaptive Medias projects the majority of its associates will have approved its HTML5 solution.
The highlights
Adaptive Medias reported that gross profit for 4Q2015 doubled to $457,340 compared to the gross profit reported in the year-earlier quarter. This jump in gross profit margin can be attributed to the increased mix of the firm’s Media Graph technology segment sales, which has high margins, compared to its traditional lower margin ad operations.
Adaptive Medias announced that operating expenses for 4Q2015 declined significantly to $3.57 million from $12.3 million in the same quarter, a year ago. The drop in operating expenses was a result of lower costs across the board mainly due to the firm’s focus on its proposed deal with AdSupply and the shift that is anticipated to occur soon. The shift is from company’s offices in Irvine to AdSupply’s office in Culver City.
G&A expenses continued to drop, falling to $600,000 in 4Q2015 compared to G&A expenses of $1.3 million in the previous quarter ended September 30, 2015.
Life Clips Inc (OTCMKTS:LCLP) Enters Leisure and Travel Marketplace
Life Clips Inc (OTCMKTS:LCLP) reported that it has entered into the leisure and travel marketplace and has obtained a purchase order from distributor firm, DFJ Collections OY. Bob Gruder, the CEO, said that the tourism and travel industry been rising steadily with the middle class across globe creasing. In addition, cruise ship tourism market has been growing as per the latest industry reports.
The encouraging report prompted them to tap global contacts for adding new channels and benefit from this growth. With many people deciding to plan a cruise trip annually, there is an opportunity within a growing $40 billion industry. The company’s Mobeego product is an ideal addition to the products that these floating units have for their boarders. They are very delighted to report that DFJ Collections OY has released its first purchase order to the company.
Life Clips’ Mobeego® brand was introduced in November 2015, and it is available across 16 different nations. So far, the company has sold more than 450,000 units of Mobeego®’s with the projected revenue target at $1 million before the end of 3Q2016.
