Archive for August, 2011

DG Fastchannel Q2 Revenue Increases 17 Percent, Misses Estimates

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Aug 08 2011

DG announced that its revenue for the second quarter of 2011 was $67.9m, an increase of 17% versus the same period a year ago and up 5% compared to the previous quarter. These results do not include contribution from MediaMind Technologies, which was acquired on July 26, 2011.

The results were below the expectations of analysts who were anticipating revenue of $73.6m on average according to Reuters.

GAAP net income for the quarter was $10.2m up from $9m in Q2 2010.  Adjusted EBITDA increased 12% to $30.9m versus the same period of 2010.

Adjusted gross margin were 70%, excluding the MIJO and Treehouse acquisitions, consistent with the prior year period.

Revenue from the delivery of HD advertising content increased 30% versus last year to $31.1m. HD penetration in the quarter was 13.7% and the percentage of HD deliveries distributed electronically increased to over 88% during the quarter.

Neil Nguyen, President and Chief Operating Officer of DG, said, “This quarter, we saw solid demand for digital delivery services in our television advertising business as we sustained gross margin, taking into account the impact of the MIJO and Treehouse acquisitions. The television advertising business shows good year-over-year growth in our HD business, with a larger number of networks, cable operators and television stations accepting HD advertising. The television advertising business is characterized by overall stability in this reporting period, however, the second quarter results were impacted by a year-over-year decline in automotive advertising due to the Japanese earthquake.

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Related Content:

Press Release: DG® Reports Second Quarter 2011 Results

Reuters article: DG Fastchannel Q2 rev misses Street, shrs fall

Previous Quarter: DG (Fastchannel) Q1 Results Up Significantly Year-Over-Year, But Down Versus Last Quarter

Previous Year: DG Fastchannel Reports Record Q2 2010

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Dolby Q3 Revenue Declines on Lower Prices for 3D and D-Cinema, Discloses That Dolby Technology Not Part of Windows 8

broadcast technology market research | Posted by Joe Zaller
Aug 06 2011

Dolby announced that its revenue for the third quarter of its 2011 fiscal year was $219, down 5% from the same period a year ago, and down 12% versus the previous quarter. GAAP net income in the third quarter was $61.7m, down from $63.5m last year.

The company attributed the results to price drops for its 3D and digital cinema products.

Licensing revenue during the quarter was $181.8m, a 7% increase versus the third quarter of last year, and down 15 versus the previous quarter. Product revenue in the quarter was $28.4m, down 46% from a year ago, and up 8% from last quarter. Service revenue in the quarter increased 21%
versus last year to $8.8m. The overall gross margin for the quarter was 87%.

The biggest news came during the company’s conference call with equity analysts, where it was disclosed that Dolby technology will not be included in the next version of the Windows operating system from Microsoft.

Company president & CEO told analysts: “What we know today is that we’re not in the current build of the [MS Windows 8] software. And so we are planning for a scenario where we’re not in Windows 8. And that would mean for us working more extensively with OEMs and ISVs, each of whom we
work with today, but working with them more extensively not only to support DVD playback but to really make for the best online experience.”

 

Financial Guidance

For fiscal 2011, Dolby says it is now targeting revenue of $930 million to $955 million, up from previous guidance of $905 million to $945 million.

 

Related Content:

Dolby Press Release: Dolby Laboratories Reports Third Quarter Fiscal 2011 Results

Dolby Q3 2011 Conference Call Transcript

Previous Quarter: Dolby Says Q2 Revenue Increased 3%, But Lowers Outlook for Full Year

Business Insider Article: Why Did Microsoft Cut Dolby Out Of Windows 8?

Forbes Article: Dolby Says Not Included In Windows 8; Shares Fall Hard

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

broadcast technology market research, Broadcast technology vendor financials, Quarterly Results | 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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Ranking Broadcast Technology Vendors Part 2 – the 2011 BBS Net Change in Overall Brand Opinion League Table

broadcast industry technology trends, broadcast industry trends, broadcast technology market research, Broadcast Vendor Brand Research, market research, Top Broadcast Vendor Brands | Posted by Joe Zaller
Aug 04 2011

This is the fifth in a series of articles about some of the findings from the 2011 Big Broadcast Survey (BBS), a global study of broadcast industry trends, technology purchasing plans, and benchmarking of broadcast technology vendor brands.  More than 8,000 people in 100+ countries took part in the 2011 BBS, making it the largest and most comprehensive market study ever done in the broadcast industry.

 

Each year, as part of the Big  Broadcast Survey (BBS), we ask broadcast professionals worldwide to rank a variety of technology vendor brands on a wide range of metrics.  We use this information to create a series of reports, which through benchmarking and industry league tables” enable each vendors to understand its position in the market relative to their the industry as a whole as well as their direct competitors.

In a previous article we wrote about the 2011 BBS Overall Brand Opinion League Table, which shows how our global sample of broadcast professionals ranked 118 broadcast vendor brands in terms of their overall opinion of these vendors.

While it’s great for a vendor to be named to the top 30 for overall opinion, these rankings may be seen as somewhat one-sided because they rely primarily on the positive opinions of respondents. In order to get a better understanding of how broadcast technology vendor brands are perceived, it is necessary to look at both the positive and negative opinions of brands, and to take into account how these opinions have changed over time.

To achieve this, we first determine whether a respondent has an opinion of a brand, and then ask them how their opinion of that brand has changed over time – i.e. has it improved, declined or stayed the same.

When compared to the previously published ranking of overall opinions of brands, this methodology provides a more comprehensive picture of how a brand is perceived because it shows both the positive and negative opinions of each brand.

Sometimes these results highlight some interesting perceptions about brands.  Take for example the chart below, which is from our 2009 study.

 

 

 

In this case the brand that was top for “got better” was also top for “got worse.”

Given these results, it is perhaps more useful to find the Net Change in Overall Opinion for each brand, which is calculated by using the following formula:

GB-GW/# of total respondents = Net Change in Brand Image

In other words, the percentage of respondents who said a brand “got worse” is subtracted from the percentage of respondents who said their opinion of a brand had “got better” (ignoring the “stayed the same” number).

This takes into account both the positive and negative perceptions of brands, along with how these opinions have changed over time.  It also presents a more balanced view of which brands are getting better and which are getting worse in the minds of market participants.

Because some brands are polarizing (as seen in the example above), it’s possible that a strong “got better” response might be cancelled ut by a strong “got worse” response.  As a result some companies who were rated in the top 30 on just the “got better” score were not included in the global or regional top 30 because their high “got worse” score dragged down their overall result.  At the same time, a few of the companies with high “got worse” scores still made the top 30 list because these negative scores were cancelled out by even higher “got better” scores.

In order to arrive at the Net Change in Overall Opinion, research participants were asked whether their opinion of various brands had “got better”, “got worse” or “stayed the same” over the past 2-3 years.

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The results of this enquiry are shown below in two ways:

  • An overall industry “league table” that shows the 30 highest ranked vendors for the metric “Net Change of Overall Opinion.”  The data in this chart is broken out globally and regionally.

 

  • An analysis of the “frequency” of appearance in the “Net Change of Overall Opinion” league table.”

 

The top 30 ranked brands for Net Change of Overall Opinion are shown below for both the global sample of all respondents as well as for all respondents in each of the geographic regions.

 

In all cases, these results are shown in alphabetical order, NOT in the order in which they were ranked by respondents to the study.

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2011 BBS Net Chage in Overall Opinion League Table:

 

A total of 51 broadcast technology vendor brands are included in this table, illustrating the geographic variation of opinion.

In terms of frequency of appearance in this table:

 

  • 13 brands appear four times, meaning they were ranked in the top 30 globally and in each geographic region

 

  • 10 brands appear three times

 

  • 9 brands appear two times

 

  • 19 brands appear one time which demonstrates that some brands are strongest in one geographic area

 

 

Analysis of the data shows that are some clear market leaders on a global basis, while others are strong on a regional basis.

A breakdown of how many times each company appears in the ranking shows how many times each brand appears in the chart above.

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Brands appearing four times in the 2011 BBS Net Change of Overall Opinion League Table: 

  • Adobe, Aja Video, Apple, Blackmagic Design, Canon, Cisco, Genelec, Omneon, Panasonic, Riedel, Sennheiser, Sony, Tektronix

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Brands appearing three times in the 2011 BBS Net Change of Overall Opinion League Table: 

  • Ateme,  Evertz, EVS, Harmonic, Net Insight, Rhozet, Rohde & Schwarz, Ross Video, Shure, Vizrt

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Brands appearing two times in the 2011 BBS Net Change of Overall Opinion League Table: 

  • AKG, Digital Rapids, Dolby, Ensemble,  Front Porch Digital, Lawo, Telestream, TVIPS, Wohler

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Brands appearing once in the 2011 BBS Net Change of Overall Opinion League Table: 

  • AmberFin, Audio-Technica ,Avid, Fujinon, Grass Valley, Harris, Inlet Technologies, Linear, Linear Acoustic, Miranda, MSA Focus,
    Nevion, Playbox, PubliTronic, Schoeps, Screen Service, Solid State Logic, Telecast, Yamaha

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Frequency Analysis of the Brands in the in the 2011 BBS Net Change of Overall Opinion League Table:  

In order to provide a better understanding of which brands were most highly ranked in each geography, the data has been provided in the
table below, which shows the global and regional performance for each brand in the top 30 ranking of overall opinion.

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Frequency Analysis of Brands in the 2011 BBS Net Change of Overall Opinion League Table

 

 

This frequency analysis chart shows that there are some interesting geographic variations in the data. Here’s a closer look at how brands appeared by geography:

 

Appearing in the top 30 “overall opinion” ranking globally + one region

Eight brands managed to achieve a top 30 ranking in theglobal overall opinion league table, despite being in the top 30 of only one of the three geographic regions.

  • Digital Rapids, Ensemble, EVS, Front Porch Digital, Lawo, Net Insight, Telestream, T-VIPS

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Appearing in the top 30 “overall opinion” ranking in one region

The following 18 brands did not make the top 30 in the global league table of overall opinion, but they did appear in the top 30 overall opinion ranking in one of the geographic regions:

  • AmberFin, Audio-Technica, Avid, Fujinon, Grass Valley, Inlet Technologies, Linear, Linear Acoustic, Miranda, MSA Focus, Nevion, Playbox, PubliTronic, Schoeps, Screen Service, Solid State Logic, Telecast, Yamaha

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Appearing in the top 30 “overall opinion” ranking only in EMEA

  • AmberFin, Fujinon, Inlet Technologies, Linear Acoustic, Nevion, PubliTronic, Screen Service

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Appearing in the top 30 “overall opinion” ranking only in Asia-Pacific

  • Avid, Grass Valey, Harris, Miranda, MSA Focus, Playbox, Schoeps, Yamaha

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Appearing in the top 30 “overall opinion” ranking only in the Americas

  • Audio-Technica, Linear, Solid State Logic, Telecast, Wohler

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Please keep in mind when reviewing this information that all data these charts are presented in alphabetical order, not in the order brands were ranked by respondents to the 2011 BBS.  Also, the charts in this posting measure the responses of all non-vendor participants in the 2011 BBS respondents, regardless of their company type, company size, geographic location, job title and budget for broadcast technology products.  Finally please note that this study evaluated a total of 118 brands.

In order to get full value from this data, it is necessary to evaluate these results on a granular basis.  If you would like more information, please contact Devoncroft Partners.

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This article is based on the findings from the 2011 Big Broadcast Survey (BBS), a global study of industry trends, technology purchasing behavior and the opinion of vendor brands.  With more than 8,000 people in 100+ countries participating, the 2011 BBS is the largest and most comprehensive market study ever done in the broadcast industry.

Devoncroft Partners has published a variety of reports from 2011 BBS data.  For more information, please get in touch.

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Related Content:

Ranking Broadcast Technology Vendors Part 1 – the 2011 BBS Overall Brand Opinion League Table

Where is Money Being Spent in the Broadcast Industry in 2011? The 2011 BBS Broadcast Industry Global Project Index

Tracking Changes in Broadcast Industry Trends — 2011 Versus 2010

Broadcast Industry’s Most Comprehensive Market Study Reveals Top Trends of 2011

More Information About the 2011 Big Broadcast Survey from Devoncroft Partners

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© Devoncroft Partners 2009 – 2011. All Rights Reserved.

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Harris Broadcast Division Posts Strong Growth in Q4 2011, Returns to Profitability for Quarter and Full Year

broadcast technology market research, Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Aug 03 2011

Harris Corporation announced it Q4 and full year FY2011 results.

The company’s broadcast division is now part its Integrated  Network Solutions (INS) unit, which was created when Harris strategically realigned its business segments in March of 2011, so Harris no longer breaks out the specifics of its broadcast business.

However, the company did provide detail of some of its results, and according to Harris Corp. chairman and CEO Howard Lance the company’s broadcast business posted a “solid profit” for the 4th quarter of the company’s 2011 fiscal year.

Q4 revenue was $167.7m, an increase of 31% versus the same period a year ago (when it posted a loss of $21m), and an increase of 25% versus the previous quarter (when it turned a profit).  Lance attributed the strong performance to improved broadcast sales in international markets as well as growth in the new media market, including digital-out-of-home (DooH).

Broadcast communications orders for the 4th quarter were $152.1m up 37% versus the same period a year ago.  Significant deals closed in the quarter included a $16m contract from Turkmenistan TV for a full range of broadcast solutions from Harris.  The company also said that it was experiencing order growth in Latin America and Asia.

On the company’s conference call with equity analysts, Lance highlighted some of the company’s recent success in the DooH market.  During the fourth quarter, Harris installed its first digital signage system in the UK, at luxury retailer Harrods.  In the US, Harris is collaborating with Digital Display Networks and ABC to create what it says is one of the largest DooH advertising networks in the world, 7-Eleven TV.  Lance said that the system is already installed in more than 3,000 7-Eleven stores.

 

Full Year Results Exceed Guidance:

For the full fiscal year, Harris broadcast communications division had revenue of $553.8m, an increase of 14% versus its performance in fiscal 2010.  These results exceeded guidance that the company had issued for the division when it said it expected the broadcast division to break-even on full year revenue in region of $520m – $540m.

According to Lance, the broadcast division has shown “excellent growth” and has “vastly improved” over last year.  It was “profitable both for the quarter and for the fiscal year in total.”

 

 

Related Content:

Press Release: Harris Corporation Reports Solid Fiscal 2011 Fourth Quarter Results

Harris Corporation Q4 and Full Year FY 2011 Conference Call Transcript

Harris Corporation Q4 and Full Year FY 2011 Earnings Call Presentation

Harris Broadcast Communications Profitable in Q3 as Revenue Increases Nine Percent

Harris Says Broadcast Communications Business Improved Significantly in Q2

Harris Corporation Strategically Realigns Business Segments; Broadcast Communications Rolled into New “Integrated Network Solutions” Unit

Harris Broadcast Business Making a Comeback Thanks to Improved Market Condition and New Opportunities in Digital-Out-of-Home

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RealD Q1 2011 Revenue Declines 8%, Sinking Stock

broadcast technology market research, Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Aug 01 2011

3D technology licensing leader RealD announced that its revenue for its first quarter  of fiscal 2012 ended June 24, 2011 was $59.6m, a decrease of 8% versus the same  period a year ago, and up slightly versus the previous  quarter.

Licensing revenue in the quarter was $35.7m, an increase of  39% from the first quarter of fiscal 2011, and up 8% versus the previous quarter. Licensing revenue represented 60% of total revenue in the quarter.  International markets generated 58% of net license  revenue in the first quarter of fiscal 2012 compared to 35% of net license revenue in the first quarter of fiscal 2011.

Product revenue for the quarter was $23.9m, down 39% from the same period a year ago, and down 6% versus the previous quarter. The company attributed the decline in product revenue to “an increasing number of international consumers returning to the cinema with RealD eyewear purchased at  a previous RealD 3D showing.”

GAAP net income in the quarter was $9.6m, an increase of 226% versus the same period a year ago.

Gross margin increased to 59% from 28% in the first quarter of fiscal 2011 and reflects the higher mix of net license revenue and improved product and other gross profit referenced above.

Investors were unimpressed with the results.  RealD’s shares have dropped 22% since the company released its Q1 2011 earnings, and are now trading below the company’s IPO price.

 

3D Screen Deployments:

As of June 24, 2011, the company has deployed approximately 17,500 RealD-enabled screens, an increase of 133% from approximately 7,500 screens at June 25, 2010, and an increase of 2,500 screens, or 17%, from approximately 15,000 screens at March 25, 2011.  Domestic screens (U.S. and Canada) were approximately 10,300 and international screens were approximately 7,200 at June 24, 2011.

 

Related Content:

Press Release: RealD Inc. Reports Financial Results for First Quarter of Fiscal 2012

Barron’s Article: Harsh Reality Hits RealD

Bloomberg: RealD Slides Below IPO Price After First-Quarter Revenue Misses Estimates

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

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

RealD President Bows Out, Cashes In

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

 

 

Dalet Q2 2011 Revenue Increases 45 Percent

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Aug 01 2011

Media asset management solutions provider Dalet announced that its consolidated revenue for the second quarter of 2011 was €7.1m, an increase of 45% versus the same period a year ago, and down 1% versus the previous quarter. Excluding a contribution of €1.1m from GruppoTNT, which was acquired in July 2010, the company’s revenues were up 23% from the first quarter of 2010.

Gross Margin for the second quarter was up 22% at €5.5m, and up 9% excluding GruppoTNT.

The company said that in addition to its traditional news market that its sales of media asset management solutions have increased significantly.  Dalet also said that it has made inroads in the cloud-based media management and delivery market, winning two contracts in the Asia-Pacific region.

 

First Half Results:

Dalet’s revenue for the first half of 2011 was €14.3m, an increase of 74% versus the first six months of 2010. Excluding GruppoTNT the company’s revenue for the first half of the year was up 36% versus the same period a year ago.

Dalet says its order backlog for the second half of 2011 is more than €13m.

 

Related Content:

Dalet Press Release: Revenues for First Semester 2011: €14.3 Million

Dalet First Quarter 2011 Revenue Jumps 118 Percent

Belden’s Q2 Earnings Increase 60% on Strong Revenue Growth

Broadcast Vendor Brand Research, Quarterly Results | Posted by Joe Zaller
Aug 01 2011

Belden reported that its revenue for the second quarter of 2011 was $536.3m, an increase of 31% versus the same period a year ago.

Results for the second quarter include four acquisitions completed during the fourth quarter 2010 and the first quarter 2011. Excluding the impact of these acquisitions and currency fluctuations, the company’s revenue increased 17% versus Q2 2010.

The company also today that its board of directors approved a new share repurchase program that enables it to purchase up to $150m of its common stock through open market purchases, negotiated transactions, or other means, in accordance with applicable securities laws and other restrictions.

 

Outlook

Belden says it expects third quarter 2011 revenues to be $505m – $510m and income from continuing operations per diluted share of $0.56  – $0.59.  For the full year ending December 31, 2011, the Company expects revenues to be $2.01 – $2.03 billion and income from continuing operations per diluted share of $2.30 – $2.40.

 

Related Content:

Press Release:  Belden Earnings up 60% on Strong Revenue Growth in Second Quarter 2011