Post by
TheRock07 on Oct 31, 2013 12:20pm
Geared up for a strong Xmas season
The reduced adjusted EBITDA in the Q2 was a a reflection of the lower revenues earned, but mostly as well as higher personnel costs, including outsourced software development costs.
In Q2 , the company completed major initiatives in mobile, cloud media, HTML5 and the PNI API, which the company anticipates will drive a return to growth in the 2013 holiday season.
In addition, a total of $695,000 of internal development costs were capitalized in the year-to-date period last year, while no such costs were capitalized this year.
Subsequently, the company begun scaling back its outsourced development teams, which the company expects will result in reduced software development expenses before the end of the company's current fiscal year.
Also negatively impacting adjusted EBITDA in the quarter were higher legal costs associated with the acquisition of Quarterhouse, .
So. PN is well situated to begin a strong rise in proftability over the next year