Broadcast graphics specialist Chyron announced that its revenue for the third quarter of 2011 was $7.47m, an increase of 9% versus the same period a year ago, but down 21% versus the previous quarter.
After posting its first positive net income in two and a half years last quarter, Chyron recorded a net loss of $3.5m during the third quarter of 2011, significantly worse than the net loss of $480,000 during the same period a year ago. The company had net income of $84,000 last quarter.
Gross margins for the quarter were 69%, the same as for the third quarter of 2010.
Operating expenses were $6.02m for the third quarter of 2011, up 11% versus last year due to increased sales and marketing headcount, which in turn led to higher compensation and travel costs. The company’s operating loss for the third quarter of 2011 was $870,000, compared to an operating loss of $670,000 last year.
Product revenue in the quarter was $5.36m, up 1% versus the same period a year ago, but down 28% versus the previous quarter.
Service revenue in the quarter was $2.11m, up 34% versus the same period a year ago, and up 6% versus the previous quarter. Service revenue contributed 28% of total revenue, versus 23% last year, and 21% of total revenue last quarter.
.
Year-to-date Results
For the nine months ended September 30, 2011, Chyron’s revenue was $23.5 million, an increase of 13% versus the first nine months of 2010. Year-to-date net losses are $3.85m, versus a net loss of $1.85m for the first nine months of 2010.
Product revenues for the first nine months of the year were $17.82m, an increase of 11%, compared to the comparable prior year period. Service revenues were $5.66m for the nine months of the year, up 22% versus the same period a year ago. Year-to-date, service has contributed 24% of total revenue.
.
Chyron CEO Michael Wellesley-Wesley said that the company’s results for the third quarter of 2011 “displayed improvement given the current uncertain economic conditions in the U.S. and Europe with our top line showing modest growth over last year’s third quarter. Our services revenues increased 34% in the third quarter of 2011 over the same period in 2010 as we remain focused on expanding our Axis World Graphics platform. Operating expenses in the third quarter of this year showed a slight increase as we continue to invest in the future growth of the Company by making strategic hires for key sales positions. Going forward, we anticipate further improvements in 2012, especially in the domestic market owing to factors associated with the 2012 Olympics and the upcoming Presidential election. Internationally, we are looking for an increased contribution from our EMEA and Latin America operations as a result of the increased headcount in the sales department that have been put in place this year.”
.
.
Related Content:
Press Release: Chyron Reports Financial Results for the Third Quarter and First Nine Months of 2011
Previous Quarter: Chyron Turns First Profit Since 2008 As Second Quarter 2011 Sales Jump 36 Percent
Previous Year: Chyron Grows Revenue 8% in Q3, Achieves EBITDA Breakeven as Losses Continue to Narrow
.
.