Image Metrics (PINK:IMGX)

Image Metrics reported revenue of $4.0 million in its fiscal year-ended September 30, 2009 and entered fiscal 2010 with a backlog of firm contracts of over $5 million. Image Metrics’ revenue grew to $2.5 million in its first quarter ended December 31, 2009, and the Company has already recorded revenue of over $800,000 in January 2010, the first month of its fiscal 2010 second quarter.

Seasonality and the variability of contract timing and scale will likely lead to fluctuations in year-over-year and sequential comparisons for the next few years. Nonetheless, the Company believes it is on track to deliver significant revenue growth and improved bottom line performance in fiscal 2010 and beyond.

With ramping revenue, Image Metrics anticipates improved gross profit margins on a relatively fixed overhead, though planned increases in sales & marketing, product development and some G&A expense could have an offsetting impact on profitability. While Image Metrics reported a net loss of $6.8 million for fiscal 2009, its net loss for Q1 ’10 improved to $1 million.