CAMBRIDGE, England—Shares of Bango plc faltered after the company said it was unlikely to become cash flow-positive this year.
Bango, which provides technology for off-deck content delivery and billing, reported $8.6 million in revenues for the six-month period ending Sept. 30, up 43 percent compared with the year-ago period. Gross profit was up 40 percent to $2.48 million, the company said, as end-user spending increased 40 percent to $7.3 million.
But Bango’s operating expenses increased substantially as the company expanded its European and U.S. operations, and the company’s pre-tax loss widened to $3 million from $880,000 during the same period in 2005.
Investors responded by sending shares of Bango down 18 percent on the London exchange.
“Although expectations of breakeven for the year are now unlikely to be met, due to slower end-user spend, we are still expecting monthly breakeven by the end of the second half,” said Bango Chairman Lindsay Bury. “Based on growth in the year to date and our visibility of activities by our customers, coupled with the company’s partnerships and central position in a high-growth market, we look forward to the future with confidence.”
Indeed, the company has notched some impressive customer wins and partnerships in recent months, including those with MTV, Yahoo Inc., Capcom and EA Mobile. Bango also said it is powering a direct-to-consumer storefront for INgrooves, a mobile music publisher that owns mobile rights to artists including Thievery Corporation, The Crystal Method, Traxamillion and Kieran.
