Archive for February, 2011

Miranda Reports Record Q4 and Full Year 2010 Results, Forecasts Continued Growth

broadcast industry trends, Broadcast technology vendor financials, Broadcast Vendor M&A, Quarterly Results | Posted by Joe Zaller
Feb 24 2011

Miranda Technologies said today it achieved record revenue for the fourth quarter and full year 2010, driven by a strong international sales performance, and helped by the contribution from recently acquired automated playout provider OmniBus Systems.

Revenue for the fourth quarter was a record C$44.9, up 26% versus the same period a year ago, and up 19% versus the previous quarter. OmniBus, which was acquired in September of 2010, contributed C$6m during the quarter.   Excluding OmniBus, Q4 revenue grew 9% versus the same period a year ago.

Q4 net income was C$3.8m, up 82% from Q4 2009 but down 42% from the previous quarter when the company was helped by a C$1.3m reduction in income taxes as well as a one-time tax credit of C$2.4m.  OmniBus recorded a net loss of $0.2m during the quarter. Excluding OmniBus, Q4 net income was up 92%.

Gross margins for the quarter were 60%, up seven percentage points versus the same quarter a year ago, and exceeding the high-end of the guidance the company issue during a recent investor presentation. The company attributed its strong margin performance to improved pricing, product and customer mix, including the sale of higher margin solutions associated with OmniBus, along with operational efficiencies.  Miranda says it expects gross margins to continue to be at the high-end of its targeted range of 55% – 59%.

EBITDA was C$8.1m for the quarter, up 57% over Q4 2009. EBITDA as a percentage of sales was 18%, up three percent versus the same period a year ago.

Q4 Revenues increased in all geographies versus the previous year, with Canada, the United States and Other Countries, growing 596%, 24% and 14%, respectively. Canada, the United States and Other Countries generated 7%, 38% and 55% of quarterly sales respectively.

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For the full year 2010, the company posted net income of C$12.2m (up 122% versus FY 2009), on record revenue of C$143.7m (up 9% versus FY 2009), with OmniBus contributing C$7.9m since it was acquired.

Excluding OmniBus, 2010 was C$135.7m, up 3% over 2009, while net income was up 122%.

On a geographic basis, full year 2010 sales from the international region increased 15% over 2009 to C$78.3m, while sales to the United States were down 3%, coming in at C$55.5m.

On the company’s conference call with equity analysts, Miranda president and CEO Strath Goodship said that the broadcast market improved during 2010 and that the company was able to capitalize on this.  He said that US broadcast market is experiencing steady recovery and that Q4 2010 was “reasonably good” in the US, but not back to 2008 levels.  However, he said that emerging markets had returned to 2008 levels, and that he expects 2011 to be a “pretty good” year.

Goodship mentioned several key product areas as revenue drivers, including the launch of the Nvision hybrid router, which has said was a big success in the market.  He also reported that infrastructure sales continued to be strong as customers worldwide continue to upgrade to HDTV operations.

Not surprisingly, Goodship spent time during the call discussing the acquisition of OmniBus, stating that the purchase of the automated playout provider was one of the company’s “most pivotal moves to date” and that it has increased Miranda’s addressable market by 40%.  Goodship says that the OmniBus integration program is progressing rapidly.  Subsequently company CFO Mario Settino said that the company has not yet fully realized the synergies of the mergers but that plans are in place to do this later in the year.

When asked by an analyst about growth at OmniBus, Goodship said that while the unit’s overall revenue growth was relatively flat, the iTX product line had experienced “dramatic growth.” 

Commenting on the potential for continued revenue growth at Miranda, Goodship said that the company believes it can continue to grow faster than the market.

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You can read the full Miranda Q4 and FY 2010 press release here.

Information on Miranda’s previous quarter performance is here.

A recent press release about Miranda’s progress with the OmniBus integration is here.

Miranda buys OmniBus story is here.

Miranda’s Most Recent Investor Presentation is here.

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Vislink CEO to Step Down, Will be Replaced by New Chairman on Interim Basis

Broadcast technology vendor financials | Posted by Joe Zaller
Feb 21 2011

Satellite and microwave communications technology provider Vislink said today that Duncan Lewis, who has been the company’s CEO since October 2008, will be stepping down at the end of March 2011. Vislink owns a variety of companies in the broadcast industry including Advent, Link, MRC, and Pacific Microwave.

The news comes less than a month after Vislink announced that it plans to lay off approximately 25% of its workforce, following the sale of its marine energy division.  

Newly appointed chairman John Hawkins will take over the CEO position from Lewis on an interim basis.   

Vislink announced last year that Hawkins, who the company says has previously led a number of companies through successful turnarounds, will become chairman at the company’s AGM in May 2011, replacing previous chairman Tim Trotter, whose departure was announced in November of 2010 as part of its ongoing restructuring.  

Lewis made the following statement about the announcement: “I have thoroughly enjoyed my time with Vislink despite the vicissitudes of repositioning the Group at the end of the biggest contract in its history and in the jaws of the recession. I wish my successor well in building on the platform we have created, and I am grateful to the Board for its extraordinary support during these changes.”

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You can read the full announcement from Vislink here.

Information about Vislink’s restructuring plans is here.

Information on Vislink’s plans to lay off 25% of its workforce is here.

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EVS Posts Record Revenue in 2010, Driven by Improving Market Conditions and Global Move to HDTV

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 17 2011

Live production and studio playout server vendor EVS announced that its revenue for the fourth quarter of 2010 was €26.9m, an increase of 21.3% versus the same period a year ago, but down 19% versus the previous quarter.

For the full year 2010, EVS achieved record revenue of €111.2m, up 45.2% versus 2009.  The company also said that it posted an EBIT margin of 50.0% for the full year. 

Significantly, studio revenue (a relatively new area for the company) increased 125% in 2010, and accounted for about 50% of revenue.  Revenue from outside broadcast applications grew by 7% during the year.

For the full year, EMEA revenue was €61m (55% of total), an increase of 27% versus 2009.  The company said it did well in the UK during 2010, driven deals at Sky News HD and Sky Sports HD deals, and that in the continental European market the migrations to tapeless workflows and high definition continues to drive the market.

2010 revenue from the Americas was €29.1m, up 68% from 2009.  The company said its performance in the US was driven by an expanding OB market, penetration into stadiums, and a variety of smaller deals.  EVS says that the broadcast industry in Latin America is moving fast as well, and that is’s clear Brazil will be energized by hosting future major sporting events in 2014 and 2016.

APAC revenue in 2010 was €21.1m, up 87% over 2009 as the largest sporting events of the year were held in the region.  Deals were spread across the region, with Malaysia being one of the most dynamic markets. The company said that Q4 2020 revenue jumped by 124.2% to €6.3 million, helped by the Commonwealth games that took place in October in India.

During its presentation to equity analysts, said that it continues to invest in new staff as it prepares for an improving market and the 2012 London Olympic Games.  EVS highlighted the fact that it did not lay off staff during the economic downturn, but actually started hiring.  The company added 90 staff in 2010, and now has a total of 366 employees in 19 offices.

Company CEO Pierre L’Hoest, attributed the company’s strong performance in 2010 an overall industry recovery driven by stronger revenues for broadcasters, mixed with a need to optimize the use of existing equipment.  

L’Hoest said that the economic downturn has reinforced the need for clients to optimize the way their workflows are designed.  This benefits EVS, as does the continued global migration to HDTV operations, which L’Hoest says “will continue to be a strong driver for the years to come.”

 

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You can read the full EVS Q4 and full year 2010 earning press release here.

The EVS Q4 and full year equity analyst presentation is here.

Information on the company’s Q3 2010 performance is here.

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Vizrt Reports Record 2010 Revenue as Sales Jump 23 Percent

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 17 2011

Vizrt announced that its revenue for the fourth quarter of 2010 was $31.8m, an increase of 22% versus Q42009, and an increase of 23% versus the previous quarter.

Revenue for the quarter was dominated by Broadcast Graphics (BG), which accounted for 73% of sales.  BG revenue was $23.3m, an increase of 21% versus the same period a year ago, and an increase of 20% compared to the previous quarter.  Media Asset Management (MAM) revenue rose 38% to $5.6m, while revenue from Online & Mobile (OLM) increased 3% to $2.8m.

On a geographic basis, EMEA accounted for 56% of revenue during the quarter (up 32% y/y and 19% q/q).  Americas revenue was $7.2m (up 17% y/y and up 12% q/q), while revenue from Asia was $6.8m (up 5% y/y and up 51% q/q).

 For the full year 2010, the company’s revenue was $105.6m, an increase of 23% versus 2009.  The company said its EBITDA for the full year was up 92% to $16.1m.

Company CEO Martin Burkhalter said he was pleased with the results, which he attributed to improved market conditions, and the company’s ability to deliver on its strategy.  “We weathered the downturn towards the end of the last decade better than most competitors,” said Burkhalter.  We have continued to invest in our product development; improving existing technology, integration between product lines, as well as developing and acquiring new technologies.” 

Burkhalter issued an upbeat statement about the company’s future saying “We obviously will not rest on our achievements, but continue to develop both our technology and our organization.  What 2010 has shown is that our technology strategy of multiple product lines with a high level of integration between the different lines has resulted in an offering that is very relevant for our clients.  Combined with our commercial strategy this has led to substantial growth and record revenues.”

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You can read the full Vizrt earnings announcement here.

The company’s presentation to equity analysts is here.

Information about Vizrt’s performance last quarter is here.

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Digital Vision Posts $6.9m Loss in 2010 as Sales Drop 27 Percent

broadcast technology market research, Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 17 2011

Sweden-based post production tools vendor Digital Vision announced its results for the fourth quarter and full year 2010.

Although the company said that its orders improved during the fourth quarter of 2010, it posted a loss of $3.9m (SEK25.3m) on revenue of $2.4m (SEK15.5m). 

Full year revenue was $9.2 (SEK58.8), a decrease of 27% versus 2009.  The company posted a net loss of $6.9m (SEK43.9m) for the full year.  The company attributed the revenue decline to weaker sales in the US and India (which had a very large order in 2009).

On a geographic basis, 2010 revenue was led by the EMEA region, which accounted for 66% of sales during the year.  Sales from Asia and the Americas accounted for 16% and 18% of revenue respectively.

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You can read a translated version of the Digital Vision Q4 and FY 2010 press release here.

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DG Doubles Net Income in 2010 as HD Ad Delivery Revenue Increases 72%

broadcast technology market research, Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 15 2011

HD programming and advertising content delivery service provider DG (formerly DG Fastchannel) reported that its revenue for the fourth quarter of 2010 was $76.1m, an increase of 32% versus last year, and an increase of 28% versus the previous quarter.

DG’s results were above both the consensus of equity analysts who were expecting revenue of $68.7m, and its own previously issued guidance of $67m – $69m.

Revenue from the delivery of HD advertising content during the quarter increased 61% to $34.5m as more advertisers switched to HD spots.

Net income for the quarter was $14.6m, an increase of 46% versus Q4 2009.  On a non-GAAP basis the company reported net income of $21.6m, an increase of 77% versus the same period a year ago. The company also said that Q4 adjusted EBITDA rose 47% to $38m.

DG took a $5.9m non-cash impairment charge during the quarter, related to the writedown of its Springbox division, which the company said is now non-core to its business.

The company also said it bought back $8.7m worth of its owns shares during the quarter.

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Record Full Year Results

For the full year 2010, the company posted revenue of $247.5m, an increase of 30% versus 2009, and above the company’s previously issued full year guidance of $238 – $240m.

Full year revenue from the delivery of HD advertising content grew 72% to $103 million.

Full year net income was $41.6m, double the result posted in 2009.  On a non-GAAP basis, the company posted net income of $58.8m, an increase of 98% versus the previous year.

The company, which raised $108m through a public equity offering in the second quarter of 2010, said that it spent $13.1m buying back its own shares during year, and also retired all of its outstanding senior secured debt.

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You can read the full DG Q4 and full year earnings press release here.

A review of DG’s previous quarterly results is here.

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More Broadcast Vendor M&A: Harris Buys Malibu Media Platform from Spot Runner

Broadcast Vendor M&A | Posted by Joe Zaller
Feb 14 2011

Harris Corporation said today that its broadcast communications division has acquired the Malibu Media Platform from Spot Runner.  Terms were not disclosed.

The Malibu Media platform is an online media exchange that is designed to simplify the buying and selling of TV advertising.  Harris says it plans to transition the newly acquired technology into its broadcast products in order to enhance advertising buy-sell relationships for Harris media software.

Malibu enables cable networks, cable providers, satellite providers and stations to reach more buyers, sell more inventory and provide information to buyers across the life of a campaign. For agencies and advertisers, the system provides opportunities to find inventory faster and more efficiently, while offering enhanced strategic insights to clients. Harris also expects that Malibu will enhance advanced advertising processes for digital-out-of-home and advanced advertising models, including VOD and interactive advertising.

Harris broadcast communications division president Harris Morris said that the Malibu technology was complementary to his company’s existing media and advertising management software systems.  “We believe the longer term benefits it will bring to our clients to be substantial,” said Morris.

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You can read the full Harris announcement here.

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Digital Cinema, Medical Imaging Drive 40 Percent 2010 Revenue Increase at Barco

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 11 2011

Barco announced that its revenue for the full year 2010 was €897m, an increase of 40.6% versus 2009.   The company said its results were driven by a strong performance from its digital cinema, medical imaging and avionics divisions, which saw revenue increases of 154.8%, 59.1% and 61.4% respectively.

Orders for the year were up 58.3% to €978.3m versus 2009, and the company’s order book at the end of 2010 was €426.9m, up 29% versus the end of 2009.

The company’s net income for 2010 was €43.6m, a significant improvement on 2009 when it lost €59.9m. 

On a geographic basis, the largest revenue contributor was the Europe, Middle East, Africa and Latin America (EMEALA) region, which accounted for 42.7% of sales. North America contributed 35.6% of revenue, while 21.7% of sales came from Asia Pacific. Compared to 2009 sales grew respectively by 28.9%, 66.4% and 30.7%. 

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On a segment basis:

  • The Media & Entertainment and Simulation (MES) business posted revenue of €471.7, an increase of 53% versus 2009. Digital cinema shipments were up 154.8% in 2010.

 

  • Monitoring & Control and Medical business group (MCM) sales increased 27.6% to €335m versus 2009, with medical and avionics showing particularly strong sales growth.

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Company president & CEO Eric van Zele said that thanks to the cost cutting measures the company took in 2009, it had managed to weather the economic crisis return to profitable growth.

As part of its plans to sustain its growth, the company also said that it will regroup and recombine some operating divisions in to capture additional scale economies and to align organizational structure with strategy.  “We are pleased with the progress so far and are taking the next steps to strengthen Barco’s leadership in the various segments of our business. We will do whatever it takes to realize further profitable growth in the years to come,” said van Zele.

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Outlook for 2011

Barco issued the following statement about the coming year:

2011 will see Barco deploy the third phase of a strategic plan developed beginning 2009. Within the framework of this plan the company will fully adjust structure to strategy in the coming months. Barco will further increase focus on its core activities while simultaneously creating the necessary framework for its other businesses to fully embrace entrepreneurship and become important drivers of growth. Barco will also seek to establish strong geographic leadership in growth markets such as the BRIC countries. Sales and order intake of the BRIC countries are headed for 20% of total sales in 2011. 

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You can read the full Barco FY 2010 earnings press release here.

Barco’s presentation to equity analysts is here.

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Envivio Says it Doubled Revenue in Fiscal 2011

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 11 2011

Video compression vendor Envivio said in a press release this week that the financial year that ended January 31, 2011 was the best in the company’s history.  The company attributed its success to the “explosion” of worldwide demand for multiscreen solutions.

The firm claims it doubled its sales globally and increased revenue by more than 250% in the Americas.  The company also said that its revenue and bookings doubled each quarter throughout FY2011.

Envivio is privately and it did not disclose its revenue, or the base from which its revenue doubled. 

The company says it now has more than 200 customers in over 50 countries.

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You can read the full Envivio press release here.

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Ateme Says its 2010 Revenue Jumped 57 Percent, Appoints New Senior Advisor

Broadcast technology vendor financials | Posted by Joe Zaller
Feb 09 2011

French video compression codec supplier Ateme said that its revenue for full year 2010 was $22m, an increase of 57% over 2009.  The company also said that it was profitable during the period, and that it achieved gross margins exceeded 60%, while putting almost 25% of revenue back into R&D.

Ateme said it had sales success in 2010 in both the established head-end and emerging over-the-top (OTT) video markets, and that sales increased in all geographic regions, including Latin America where revenue more than doubled.

The company attributed some its success to the fact that it successfully raised €6.5 from French PE firm A Plus Finance at the beginning of 2010.  Ateme said this new investment enabled it to develop and launch new products during the year.

Ateme says that it is expecting to see growth in the OTT video space in 2011, and that it has recently introduced new products to address this opportunity.

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Mills Appointed Senior Advisor

Separately, Ateme said that it has hired Brendon Mills as a Senior Advisor. Mills is the former CEO of transcoding appliance vendor Ripcode, which was sold to RGB Networks in June 2010. Ateme president and CEO Michel Artières said Mills will be tasked with helping the company expand into the video transcoding and US video technology markets.

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