Blinkx, the video search engine firm, saw a fall in pre-tax profit despite rising revenue.
Revenues rose year-on-year from $27.4m to $44.6m, although pre-tax profit was lower that the same period last year at $1.48m (2010: £2m) after costs also soared.
Founder and chief executive officer Suranga Chandratillake said: "Video advertising continues to thrive, with double-digit growth forecast for the next five years, and our performance over the last six months underlines the strength of blinkx's model within this dynamic marketplace.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
"Momentum was driven by increased traffic through the blinkx engine and the continued success of our advertising platform, AdHoc, in attracting new marquee brands such as Disney and Kellogg's.
"Moreover, we made further advances in our cross-platform strategy, signing key partners like Aurasma, Roku and Orb Networks to extend distribution in the mobile and connected TV arenas."
Cash at the end of the period rose to $52.9m from $16.86m the date a year ago.
The share price fell 13.11% to 106p by 10:41.
Is your property your pension?
House price growth has slowed, latest stats show – but is this a wake up call for homeowners relying on their property for retirement?
By Marc Shoffman Published
Inheritance tax receipts hit a record year as it hits £3.2bn
HMRC is collecting more and more in inheritance tax due to fiscal drag. We explain how you can minimise your bill.
By Pedro Gonçalves Published