Group spends $5.4 million in expansion phase, anticipates $20 million potential sales opportunities
Image Metrics, the California-headquartered facial animation firm, says it has made $4 million in half a year after paying heavily to fund an aggressive expansion operation.
The group, which successfully floated on the stock markets back in March, today showed that its expensive growth plan is already brining encouraging returns. The firm saw revenues rise by 154 per cent to $4 million in a six month period ending March 31.
The group, which has offices in both the US and Europe, says it made more money in this half year period than it did throughout the entire 2009 fiscal year.
Yet the revenue spike was a necessity for convincing the city of Image Metrics’ business acumen, as operating expenses in the same period rose year-on-year by 28 per cent to $5.4 million.
Heavy costs in the firm’s expansion – as it looks to provide its facial animation tech on a global scale – resulted in an operating loss of $1.8 million. The same period last year saw an operating loss of $2.2 million.
Net losses for a three-month period ending March 31 reached $2.8 million, up by $300,000 from the same period last year.
Company CEO Michael Starkenburg said the first half results “clearly demonstrate our ability to deliver impressive top-line growth and improving profitability as we scale the business.”
He adds: “Our investment in building out a sales force over the past year is clearly paying dividends as we have landed new customers and as existing customers have been signing new contracts, thereby dramatically reducing our sales cycle.”
The company says it has had to pay $0.6 million in legal fees and $1.4 million in audit fees for the period – costs related to the company scoring VC funding as well as floating on the exchange.
Image Metrics says it has “substantially expanded” its internal sales and marketing team over the past year – a reflection of the higher sales volume it has enjoyed.
The company also states that operating expenses are down for the quarter, suggesting that the bulk of expansion costs have been paid. The group has identified $20 million in potential customer opportunities, adding that its order backlog will make $2.9 million by October.
Image Metrics signed numerous deals last year, providing facial animation tech for games such as Assassins Creed II, Blur, God of War III, GTA IV: The Lost and Damned, The Ballad of Gay Tony, and Red Dead Redemption.