Archive for June, 2011

Evertz Misses Q4 Revenue and Profit Expectations as International Sales Fall by 31%

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Jun 16 2011

Evertz announced that its revenue for the fourth quarter of its 2011 fiscal year was C$68.5m, down 9% versus the same period a year ago, and a down of 18% versus the previous quarter.  The results for the quarter were below the expectations of equity analysts, which on average were looking for revenue of C$76.7m.

The decline in sales during the quarter was due to a sharp drop in international revenue, which decreased 31% versus the same period a year ago.  Q4 sales in the US/Canada region were up 16% versus the same period a year ago.

Net income in the quarter was C$12.4m, or C$0.16 per share, down 19% versus the fourth quarter last year and down 47% versus the previous quarter. Analysts were expecting earnings of C$0.24 per share in Q4.

Gross margins in the quarter were 57%, down from 58% last year and 57.5% in the previous quarter.  On the company’s earnings conference call, Evertz CFO Anthony Gridley said that the lower gross margins were due to a variety of factors including pricing, volume and currency fluctuations.

Evertz EVP Brian Campbell added that the company’s gross margins have been at the lower end of its target range for several quarters, and now that the company has entered the video server market he expects the company’s gross margin range to be in the 56% – 60% going forward.  The company’s target gross margin range had previously been 58% – 62%.

R&D expenses in the quarter increased by $2.1m or 28% compared to the same period last year.  R&D expenses represented approximately 14% of sales for the quarter compared to 10% for the same period last year.  The increase was due to both organic growth in R&D staff as well as several acquisitions made by Evertz since the fourth quarter of the 2010 fiscal year.  Evertz says it intends to continue to invest heavily in R&D.

For the quarter ended April 30, 2011 selling and administrative expenses were $10.9 million compared to $10.3 million for the quarter ended April 30, 2010. Selling and administrative expenses represented approximately 16% of sales in the quarter ended April 30, 2011.

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Full Year Results — Revenue Up 7 Percent Versus Previous Year:

Evertz said that its revenue for the full fiscal year ended April 30, 2011 were C$307.9m, an increase of 7% versus the previous year. Revenue in the US/Canada were up 12% compared to the prior year, while international sales grew 2% versus the previous fiscal year.
For the full year the company’s top 10 customers accounted for 24% of total revenue, with no single customer accounting for more than 5% of revenue.  Evertz had 250 orders in excess of C$200,000 during the year.

Full year net earnings were C$77.4m up 26% versus the previous year.  Gross margins for the year were 58%, flat versus the previous year.

Evertz continued to increase its investment in R&D during the year, spending a total of C$35.7m in the area, up 12% versus the previous year. For the full year, R&D expenses represented approximately 12% of sales, while full year selling and administrative expenses represented approximately 13% of sales.

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Related Content:

Press release: Evertz Technologies Reports Results for the Fourth Quarter and Fiscal Year Ended April 30, 2011

Evertz Q4 2011 Management Discussion and Analysis (MD&A) filing with Canadian securities regulators (Catchpa required)

Evertz Q3 Net Income Doubles as Revenue Rises 26 Percent

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Wegener Reports Q3 Results, Losses Continue

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Jun 15 2011

Wegener Corporation announced that its revenue for the third quarter of fiscal 2011 was approximately $2.2m, down 5% versus the same period last year.  The company posted a net loss of $503,000 for the quarter, compared to a net loss of $487,000 during the third quarter last year.

For the first nine months of the company’s fiscal, Wegener had posted a net loss of $1.6m on revenues of $6.6m, compared to a net loss of $2m on revenues of $6.3m for the same period in fiscal 2010.

Bookings for the third quarter and the first nine months of fiscal 2011 were approximately $1.6m and $5.5m respectively, compared to $3m and $6.9m respectively for the same periods in fiscal 2010.

“We are encouraged by the approximately 55% improvement in our third quarter revenues and the approximately 48% reduction in our third quarter net loss compared to the second quarter of this year and are continuing efforts to improve Wegener’s performance,” stated Troy Woodbury, President and CEO of Wegener Corporation. “Momentum that began to build last fiscal year has not been lost as we have significant domestic and international opportunities before us. We are making progress and remain committed to Wegener’s success.”

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RealD Posts Profit in Q4, Analysts Question of Appeal of 3D Movies

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Jun 13 2011

RealD, which licenses 3D technologies, announced that its revenue for the fourth quarter of its fiscal year was $58.5m, an increase of 6% versus the same period a year ago. The company posted GAAP net income of $4.5m in the quarter, versus a GAAP loss of $20.9m during the same period a year ago.

For the full fiscal year, the company had revenue of $246.1m, an increase of 64% versus the previous year.  Net loss for the year was $12.3m, versus a loss of $51.2m the previous year.

Despite RealD’s increasing revenue and profitability, investors sold off the stock on fears that 3D may not have the market traction that had been anticipated previously.  According to a Bloomberg article, shares in RealD fell the most since its initial public offering after analysts questioned executives about the appeal of the 3D format.

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Related Content:

Press Release: RealD Inc. Reports Financial Results for Fourth Quarter and Fiscal Year 2011

Bloomberg Article: RealD Slumps Most Since IPO as Analysts Question Appeal of 3-D Movies

RealD President Bows Out, Cashes In

RealD SEC filing detailing separation agreement between RealD and Joshua Greer

RealD Files Prospectus for $200m Secondary Stock Offering. All Proceeds Destined for Current Shareholders Rather than the Company Itself

Wall Street Journal Article: RealD Insiders Capitalize on IPO

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More Broadcast Vendor M&A: Vislink Completes Acquisition of Gigawave for £3.75 Million

Broadcast Vendor M&A | Posted by Joe Zaller
Jun 03 2011

UK-based Vislink plc, which owns the Advent, Link, and MRC brands, announced that it has closed the acquisition of Gigawave. The purchase price was £3.75m, and Vislink says the deal will be accretive to earnings.

Gigawave designs and manufacturers wireless camera, microwave and antenna products for the broadcast market. For the year ended April 30, 2011 Gigawave posted a pre-tax loss of £430,000 on revenue of £10m.  In the previous year, the company lost £1m on revenue of £12.5m.

Under the terms of the deal Vislink is paying £1.75m cash up front and repaying £400,000 of shareholder loans. Vislink will then pay an additional £1m cash on each of the first and second anniversary of the transaction.

Vislink says that Gigawave, which currently employs 87 people, will be integrated into its UK operations, and will strengthen its position in its broadcast market by broadening the its capabilities in terms of engineering, product portfolio and geographic reach.

Henry Barczynski, Gigawave’s founder and current managing director will remain with Vislink after the transaction. He will become Vislink’s chief marketing officer and report to CEO John Hawkins.

Vislink first telegraphed its intention to buy Gigawave in November of 2010 when it said it was restructuring its operations to focus more fully on the broadcast and public safety markets. At that time Vislink said it expected to pay £5.75m for Gigawave, and Vislink’s then CEO Duncan Lewis was quoted in a Financial Times article as saying the acquisition of Gigawave would “send a signal to the market of how serious we are about news and entertainment.”

Then in a March 2011 trading update, Vislink indicated that the deal might not happen, saying “Whilst we continue to believe in the industrial logic of bringing Gigawave and Vislink and their associated brands together we have, to date, been unable to reach an agreement with the vendors.”

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Related Content:

Press Release: Vislink Acquires Gigawave

Vislink Interim Management Statement for 1H 2011

Vislink News & Entertainment Revenue Declined 28 Percent in 2010

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

Vislink Lays off 25% of Workforce

Vislink Restructuring Operations. Announces M&A Program to Focus Business on IP Video for Broadcast and Public Safety Markets

Vislink Trading Update for 1H 2010

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Miranda Reports Thirty-Seven Percent Revenue Increase in Q1 2011

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Jun 02 2011

Miranda Technologies reported that its revenue for the first quarter of 2011 was C$39.8m, an increase of 37% versus the same period last year, and down 11% sequentially. Excluding the impact of foreign exchange, revenue improved 44% versus the first quarter of 2010.

Miranda said the year-over-year increase was due largely to the acquisition of OmniBus.  However the company did not break out the contribution from OmniBus, despite repeated questions from analysts on the company’s conference call, so it is difficult to know how much of the company’s year-over-year growth is organic.

On a geographic basis revenue increased in all territories, with Canada, the United States, the United Kingdom and Other Countries, increasing 31%, 38%, 212% and 23%, respectively over the prior year. Canada, the United States, the United Kingdom and Other Countries generated 10%, 32%, 10% and 48% of quarterly sales respectively.

Gross margin as a percent of sales were a strong 60%, up from 58% during the first quarter of 2010. The company attributed the increase in gross margin to favorable changes in product and customer mix, supported by the higher margin solutions offered by OmniBus.

Net profit in the quarter was C$2.3m versus a loss of C$1.6m during the same period a year ago. EBITDA was C$5.5m for the quarter, up 674% over the same period in 2010. EBITDA as a percentage of sales was 14%, versus 2% in the prior year.

“The recovery in broadcast markets, that began last year, continued and strengthened in the quarter, resulting in strong quarterly results,” said Strath Goodship, Miranda’s President and Chief Executive Officer. ”

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Related Content:

Miranda Press Release: Miranda Reports First Quarter 2011 Results

Miranda Q1 2011 Management Discussion and Analysis (MD&A) filing with Canadian securities regulators

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

Press Release: Miranda-Reports-First-Quarter-2010-Results

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Pilat Media Posts Small Loss for First Quarter of 2011

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Jun 02 2011

Broadcast business management solution provider Pilat Media said that it posted an after tax loss £189,000 versus an after tax profit of £289,000 during the same period a year ago.  Revenue in the first quarter was £5.05m, an increase of 3.5% versus the first quarter of 2010.

On a geographic basis, revenue in Australia tripled to £1.2m versus last year, while sales declined in the UK, USA and Canada.

Pilat chairman Michael Rosenberg issued a cautiously optimistic statement, saying   “After such a strong year in 2010 it was pleasing to see further revenue growth in Q1. We are continuing to see increased demand from our existing client base stimulated by the new version 6 of IBMS and our investment in new modules. These modules also open up new sales opportunities. Cash continues to grow strongly and whilst the quarter shows a small loss we remain confident that 2011 will show continued overall growth in revenues and profits.”

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Related Content:

Press Release: Pilat Media Results for the three months ended 31 March 2011

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RealD President Bows Out, Cashes In

Uncategorized | Posted by Joe Zaller
Jun 01 2011

RealD, a global licensor of 3D technologies announced that company co-founder Joshua Greer will no longer serve as President of the Company effective July 15, 2011.

According to a filing with the Securities and Exchange Commission, Greer, who made tens of millions of dollars through RealD’s IPO and subsequent share sales, has entered into a consulting agreement with RealD that will pay him $275,000 to act as a strategic and technology advisor to the company.  He will also remain on the company’s board of directors.

 

Greer will also receive the following separation benefits:

 

  • cash severance of $450,000 (Greer’s annual base salary according to RealD’s S1 filing)

 

  • reimbursement from the Company for insurance coverage under COBRA for 18 months

 

  • a pro-rated cash Performance Bonus for fiscal year 2012 (to be paid no later than June 15, 2012), in an amount equal to 30% of 80% of Mr. Greer’s salary, computed assuming that Mr. Greer had remained as President of the Company through the end of fiscal year 2012; and

 

  • acceleration of a time-based vesting stock option for 105,000 shares granted to Mr. Greer on July 15, 2010

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Related Content:

Press Release: RealD Co-Founder Joshua Greer to Transition into Advisory Role and Remain on Board of Directors

RealD SEC filing detailing separation agreement between RealD and Joshua Greer

RealD Files Prospectus for $200m Secondary Stock Offering. All Proceeds Destined for Current Shareholders Rather than the Company Itself

Wall Street Journal Article: RealD Insiders Capitalize on IPO

RealD S1 (filing with SEC)

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