Chyron Turns First Profit Since 2008 As Second Quarter 2011 Sales Jump 36 Percent

Posted by Joe Zaller
Aug 04 2011

Chyron announced that its revenue for the second quarter 2011 was $9.43m, an increase of 36% versus the same period a year ago, and an increase of 43% versus the previous quarter. Net income in the quarter of $84,000 versus a loss of $710,000 last year.

This was the first time in 10 quarters that Chyron had positive net income.  Operating profit was $237,000, the highest it has been in 11 quarters.

Product revenue in the quarter was $7.43m, an increase of 38% versus the same period a year ago, and 47% higher than the previous quarter.  Service revenue in the quarter was $2m, up 30% versus the second quarter of 2010, and up 30% versus last quarter.  Service accounted for 21% of total revenue, versus 22% last year and 23% last quarter.

The improved performance was boosted by a large order from US TV station group Raycom Media.  On the company’s earnings call Chyron CEO Michael Wellesley-Wesley said the Raycom deal was in the region of $2m, and that Chyron had also done another for about $1m with a customer from Canada.

Wellesley-Wesley also said that the company was beginning to see return on new products launched since 2010, and that he expects this to continue through 2012.

Although the company’s performance this quarter was driven in part by several large orders, Wellesley-Wesley says that he believes the company can sustain similar quarterly revenue numbers without large contracts.  At the same time however, he noted that the company has several $1m+ orders in the pipeline.

 

1H 2011 Results

For the first six months of 2011 Chyron recorded a net loss of $350,000 on revenues of $16m, compared to a loss of $1.37m on revenues of $13.8m last year. Product revenue for the first six months of 2011 was $12.5 million, an increase of 16% compared to the comparable prior year period, accounting for 78% of total revenue.  Service revenue for the first half of 2011 was $3.55m, up 16% versus last year.

Gross margins were 70%, the same as for the comparable prior year period.

Wellesley-Wesley said that the company was beginning to see the initial stages of growth that it has been anticipating, and that the investments made in sales and marketing were starting to pay off. “This quarter we concentrated on adding experienced people to the sales and professional services
groups and placed them in key positions. We have also invested significantly in marketing over the past year. We look forward to these additional people contributing in the fourth quarter, and, more importantly, significantly growing our business in 2012 and beyond. We anticipate that this investment will drive revenue growth, especially in our international business over the next few quarters.”

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Related Content:

Press Release: Chyron Reports Financial Results for the Second Quarter and First Six Months of 2011

Previous Quarter Chyron Q1 Revenue Dips 4 Percent Due to Seasonality As It Gears Up for Growth in Second Half of 2011

Chyron Q2 2010 Losses Narrow as Revenue Jumps 20%

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