Archive for February, 2012

Kit digital Says its Revenue Doubled in 2011, Forms Strategic Transaction Committee

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 28 2012

IP video specialist KIT digital announced that it expects to report Q4 2011 revenue of $70m, 4% higher than the company’s previous guidance, 82% higher than the same period a year ago, and 12% higher than the previous quarter.    Non-GAAP operating income for the fourth quarter is expected to be approximately $16.4m versus previously issued guidance of $17.5m, representing an increase of 15% sequentially and 145% over the fourth quarter of 2010.

The company said it expects to report full year 2011 revenue of $215m, up 102% from 2010, and full year non-GAAP operating income of approximately $47.3m, up 158% from 2010.

“The organic growth in our business is reflected in these preliminary record results,” said KIT digital’s chairman and CEO, Kaleil Isaza Tuzman. “The quarter’s non-GAAP operating income is expected to come in marginally lower than originally targeted, due to increased internal staffing and third-party resources for additional tier 1 deployments in the quarter. However, we were pleased with the bottom-line results, and the investments we are making now add to our conviction that we have set the stage for a strong 2012 and beyond.”

 

Outlook for Q1 and Full Year
The company said that it expects to report revenues of at least $72 million for the first quarter of 2012, and full year 2012 revenue in the range of $320m to $330m, versus previously issued full year 2012 guidance of $320m.

For 2012, management expects the company’s non-GAAP operating income margin to be within a range of 23.5% to 25.5%. This full year margin is inclusive of the following expected investments and charges during the course of 2012: (a) approximately $5m of additional investment in sales and marketing, including solution design and channel sales programs; (b) approximately $3m of additional investment in R&D; (c) approximately $4.5m for performance management initiatives, including the replacement of poor performers, as well as the recruitment of additional direct sales, partnerships, and engineering personnel in the company’s AsiaPac and LatAm regional operations, areas of strong growth opportunities in 2012 and 2013; and (d) approximately $3.5m for office consolidation and relocation of certain client service centers to lower cost jurisdictions.

“The sales and R&D investments are aimed at seizing the opportunity presented by the launch schedule of premium content OTT offerings by service providers globally, as well as rapid growth in emerging markets such as Latin America, the Middle East, and Southeast Asia,” said KIT digital’s president, Gavin Campion. “We expect increased investments in sales and marketing, R&D, and client services capabilities to lead to enhanced growth rates in 2013 and beyond, and the rationalization of certain offices and client service centers to lead to savings of up to $10 million in 2013.” The majority of these investments and expenditures are expected to occur during the first half of 2012. As such, KIT digital expects to finish the year with a run-rate non-GAAP operating income margin in the range of 27% to 29%.

 

Strategic Transaction Committee Formed:

Commenting on speculation that the company may be an acquisition target, Tuzman said “As we have previously disclosed, we have from time to time received expressions of interest concerning significant investment in, and possible purchase of, our company. Due to recent inquiries and conversations, in January our board established a strategic transaction committee of independent directors to allow for responsible and efficient review of such opportunities as they arise. The company has not made a decision to pursue a strategic transaction nor has it entered into any agreement with a prospective purchaser with regard to any such transaction, and the establishment of the board committee should not be considered indicative of any pending or future transaction.”

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Related Content:

Press Release: KIT digital Announces Record Preliminary Q4 and Full Year 2011 Results, Updates Guidance for 2012

Previous Quarter: KIT digital Reports Record Q3 2011 Results, Issues Strong Guidance

More Broadcast Vendor M&A: Kit Digital Buys ioko for $79.4m, Completes Buying Spree

Previous Year: KIT digital Reports Q4 and Fiscal 2010 Results, Raises Guidance, Says Big M&A Deal Still on Track

More Broadcast Vendor M&A: KIT digital Acquires Polymedia for $34.4m

More Broadcast Vendor M&A: Kit Digital Buys Three Companies for $77m, Says larger Acquisition is Coming

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Harris Corporation Shuts Down Cyber Integrated Solutions Business

broadcast industry technology trends | Posted by Joe Zaller
Feb 27 2012

Harris Corporation, announced that it plans to discontinue its Cyber Integrated Solutions (CIS) operation — which provided remote cloud hosting — and sell its related data center facility in Harrisonburg, Virginia.

According to the company’s 8-K filing with the SEC, the company expects to incur total estimated pre-tax charges of $113 million to $129 million ($70 million to $80 million after-tax), almost all of which are expected to be reflected in the company’s results for the third quarter of fiscal 2012. These estimated pre-tax charges are expected to be comprised of approximately $109m to $125m in impairment of long-lived assets; $1m in one-time employee termination costs, including severance and other benefits; and $3m in other associated exit or disposal costs. Harris expects that approximately $4m of these estimated pre-tax charges will result in future cash expenditures. The company expects to complete these exit and disposal activities by the end of its fiscal 2012.

The CIS operation is part of the company’s Integrated Network Solutions (INS) segment, which was formed last year when Harris strategically realigned its business segments.  In its most recent earnings release, Harris said that the CIS business lost money last quarter, impacting the overall results of the INS segment.

Significantly, the Harris INS segment also includes the company’s Broadcast & Communications Division, and there is speculation about whether the broadcast business may be spun off by the parent company after comments made by new Harris CEO William Brown.

As previously written, Brown said on the company’s most recent earnings call that although the Harris broadcast business performed well during the quarter, with revenue and operating income both up year-over-year, the company’s broadcast business still has work to do. “In Broadcast, we bought several companies over the years which were never fully integrated. While we continue to see good traction on the top line, our cost structure, driven by complexity, lack of productivity and growth investments, isn’t where we need it to be and it’s preventing us from achieving acceptable returns. Our team is now laser-focused on developing a strategy for this business that maximizes shareholder value.”

This comment led Cowen & Company research analyst Gautam Khanna to ask Brown whether Harris might be open to “maximizing shareholder value” in the broadcast sector, if this space does not align well with the company’s 3-5 year strategy.

Brown responded by saying that Harris is “taking a fresh look in the environment that we’re in across all of our businesses with a special focus on cash, on cost, some of the structural cost. Some of the structural cost reductions will come through some investment, which we’ll know over the coming months. We’ll give you some insights as we go through the quarter if there’s anything that’s notable that needs to be released, or at our third quarter call later in the year. But to comment on what’s in or out of the portfolio, we’re taking a fresh look at all the pieces, and that includes all the business that we happen to be in today.”

 

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Related Content:

Press Release: Harris Corporation to Discontinue Cyber Hosting Operation; Will Continue Providing Advanced Cyber Security and Cloud-Enabled Applications and Services

Harris 8-K Filing with SEC Detailing Shutdown of CIS Business ­

Harris Broadcast Revenue and Income Rise in Q2 2012, Says It’s Laser Focused on Maximizing Shareholder Value

Press Release: Harris Corporation Reports Fiscal 2012 Second Quarter Results

Harris Corporation Q2 FY 2012 Conference Call Transcript

Harris Fiscal 2012 Second Quarter Earnings Call Presentation

Previous Quarter: Harris Reports Q1 2012 Results, Says Broadcast Revenue Increasing

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SeaChange Executes Separation Agreement with Former President

broadcast technology market research | Posted by Joe Zaller
Feb 27 2012

VOD specialist SeaChange has executed a separation with former company president Yvette Kanouff. The information was disclosed in a filing with securities regulators.

Under the terms of the Separation Agreement, in exchange for Ms. Kanouff’s release of claims, SeaChange will:

  • pay Ms. Kanouff $400,000, equal to her annual base salary, in twice-monthly installments on SeaChange’s regular payroll schedule for a period of twelve months;
  • satisfy a previously granted retention award by the payment of $75,000 in cash and the accelerated vesting of the restricted stock unit for 3,000 shares of SeaChange’s common stock;
  • permit Ms. Kanouff to remain eligible to receive an award under SeaChange’s fiscal year 2012 compensation and bonus plan, with such payments, if any, to be made at the time and under the terms as would have applied had Ms. Kanouff remained actively employed by SeaChange, provided that 8,330 of such RSUs shall be awarded to Ms. Kanouff on execution of the Separation Agreement
  • pay for up to 12 months (or such earlier period as Ms. Kanouff becomes eligible for healthcare coverage from a new employer) of her coverage under comparable medical and dental benefit plans to those by which she was covered immediately prior to the termination of her employment.

 

Kanouff remains subject to the terms of an Employee Noncompetition, Nondisclosure and Developments Agreement with SeaChange previously executed by Ms. Kanouff with SeaChange, pursuant to which there is a one-year post-employment noncompetition and nonsolicitation obligation.

 

 

Related Content:

SeaChange President Departs, Position Will Not be Replaced

Press Release: SeaChange Announces Departure of Company President Yvette Kanouf

Press Release: SeaChange Announces More Than $5 Million in Annualized Cost Reductions

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Autodesk Media & Entertainment Revenue Rises Nine Percent in 2011

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 24 2012

Autodesk announced that Q4 FY2011 revenue from its media and entertainment (M&E) business segment was $55 million, an increase of 7 percent compared to the fourth quarter last year. Gross margins for the quarter were 77%.

For the full year 2011, M&E revenue was $216m, up 9% versus 2010. Gross margins for the year were 81%.

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Related Content:

Press Release:  Autodesk Reports 12 Percent Fourth Quarter Revenue Growth

Autodesk Q4 and Full Year 2011 Analyst Conference Call transcript

Previous Year: Autodesk Q4 2011 Media and Entertainment Revenues Increases 12 Percent

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Haivision Says its Revenue Grew 47 Percent in 2011

Broadcast technology vendor financials, Broadcast Vendor M&A, Quarterly Results | Posted by Joe Zaller
Feb 17 2012

IP video specialist Haivision said in a press release that its 2011 revenue grew by 47% compared to 2010.

The company did not discuss what percentage of its growth has been organic versus through acquisitions such as its 2010 purchase of two companies — KulaByte and MontiVision, but it’s safe to assume that its M&A strategy played a significant role in the company’s success.

Haivision is privately held and did not disclose revenue numbers or any other financial metrics, such as profitability or operating margins, but at the time of the KulaByte and MontiVision announcement the company said it was “driving towards $50m in revenue.” The company also said it has achieved a 50% compounded annual growth rate over the past six years, and has had 16 straight quarters of positive EBITDA.

According to company president & CEO Mirko Wicha, Haivision’s growth has been funded internally rather than through outside capital.

“Haivision is successful due to a unique combination of market understanding, channel dedication, technology leadership, and fiscal diligence,” said Wicha. “As our recent acquisitions mature within our channels and we extend our strengths within the enterprise towards OTT and mobile solutions, Haivision is very well positioned to continue its growth across our focus segments.”

Haivision now has over 160 employees operating from offices in Montreal, Chicago, Beaverton, Austin, Hamburg, Dubai, and Hong Kong.

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Related Content:

Press Release: Haivision Continues Record Growth in 2011 Leads IP Media Sector With New Technologies and Acquisitions

More Broadcast Vendor M&A: Haivision Acquires KulaByte and MontiVision; Forms Internet Media Division

 

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Vizrt Reports Record Revenue in 2011, Targets 13 Percent Growth in 2012

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 17 2012

Vizrt reported that its revenue for the fourth quarter of 2011 was $35.5m, an increase of 5% versus the same period a year ago, and up 12% versus the previous quarter. Full year revenue was $125m, an increase of 19% versus 2010, and record result for the company.

Gross margins for the fourth quarter of 2011 were 69%, up from 63% last year and up from 66% last quarter. EBITDA was $8.9m for the quarter, an increase of 44% versus last year and an increase of 58% versus last quarter.  The EBITDA margin for the quarter was 27%. Net profit for the quarter was $6m versus a loss of $193,000 a year ago, and up by 81% versus $3.32m last quarter.

Product Line Results for the Quarter:

  • Broadcast Graphics (BG) accounted for $26.8m during the quarter (75% of total revenue), an increase of 15% versus last year and an increase of 4% versus last quarter.
  • Media Asset Management (MAM) revenue in the quarter was $4.6m (13% of total revenue), down 18% versus the same period a year ago, and up 4% versus last quarter.
  • Online & Mobile (OLM) revenue in the quarter was $2.1m, down 26% versus last year and up 12% versus last quarter.  Vizrt said that in the future it will include mobile into its existing product lines for reporting purposes.

 

Geographic Performance for the Quarter:

  • Revenue from EMEA was $18.6m (51% of total revenue), up 5% versus the same period last year and up 6% versus last quarter
  • Americas revenue was $7.8m (22% of total revenue), up 7% versus last year, and up 16% versus last quarter
  • APAC revenue was $7.1 (20% of total revenue), up 5% 5% versus last year and down 4% versus last quarter

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Full Year Results:

Revenue for the full year 2011 was $125m, an increase of 19% versus 2010, and record result for the company.

Gross margins for the year were 66%, up from 62% in 2010.  EBIT for 2011 was $18.5m, or 15%, an improvement from a 9% EBIT margin last year.

Total operating expenses for FY 2011 were $64.4, up 7.5% compared to full year 2010. The increase was mainly due to an increase in headcount in Vizrt and staff additions due to the LiberoVision acquisition, which took place in July 2011. In its press release, the company pointed out that the increase in total operating expenses was below the revenue growth rate (7.5% versus 19%).

R&D expenses for the year were $19.1m up 22% versus last year, but remained steady at 15% of revenue. G&A expenses increased by 13% 10 $11.4m, but declined as a percentage of total revenue for the year. Sales & Marketing expenses also rose during the year in dollar terms but declined as a percentage of overall revenue.

EBITDA for the year was 24.9m (20%), an increase from $16.1m in 2010 (15%).

The company ended the year with $73.1m in cash, up $10.7 from the third quarter of 2011.

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Product Line Results for the Full Year:

  • Broadcast Graphics revenues for 2011 were $96.2 or 77% of total revenues.  2011 revenue from broadcast graphics was up 24% versus 2010
  • MAM revenues for 2011 were $19.2m, or 15% of total revenue .  2011 MAM revenue declined 2% versus 2010
  • Online & mobile revenue for 2011 was $9.9m or 8% of total revenues. Compared to 2010 OLM decreased 26%.  In a change to its reporting the company says it will no longer separately report OLM revenue because “Our Mobile technology is basically a technical extension of our existing business lines (MAM, Online, BG) and it is therefore natural to include Mobile as a product into our existing business lines.”

 

Geographic Performance for the Full Year:

The company said that all regions contributed to the improved performance in 2011, with the strongest growth recorded in APAC, where revenues went up by 38% to $28.5m versus the previous year.  Revenues in the EMEA region were up by 16%, $69m.  Revenue from the Americas region was up 9% versus 2010 to $27.8m.

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Outlook for 2012

Martin Burkhalter, Vizrt CEO, stated, “Despite the strong Q4 performance, we sense that the macroeconomic environment continues to be characterized by uncertainty. We are receiving some mixed signals from the market and concerns related to public debt, uncertainties related to the EURO, and signs of lower economic growth in the Eurozone countries and the U.S., might in the mid or long-term have an adverse impact on market conditions. However, based on our strong product offering, combined with certain large events such as the Olympic Games and the European Football Championships, as well as the 2012 U.S Presidential elections, we reiterate our outlook for 2012 of an organic revenue growth target of around 13%, with full year EBITDA improving towards our long term target of 23%.

“For 2012 we will focus on organic growth through consolidation of past acquisitions, further integration  between product lines and our increased sales capabilities in the regions. Due to the prevailing uncertainty, we will continue to focus strongly on controlling OPEX to protect our profitability.”

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Related Content:

Press Release: Vizrt Ltd. Reports 2011 and Q4 2011 Results with New Records

Vizrt Q4 and Full Year 2011 Analyst Presentation

Previous year: Vizrt Reports Record 2010 Revenue as Sales Jump 23 Percent   http://bit.ly/eqbAyT

Previous Quarter: Vizrt Reports Q3 2011 Results

More Broadcast Vendor M&A: Vizrt Completes Acquisition of LiberoVision

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EVS Revenue Declines 3.8% in 2011, But 2012 Order Book Hits Record Levels

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 16 2012

Production and playout video server specialist EVS reported that its revenue for the full year 2011 was €106.9m, down 3.8% versus last year.  

Despite the year-over-year revenue drop, the company said that its order book had reached a record €46.1m by the end of 2011, driven in part by a new investment cycle from OB truck operators and in anticipation of many large sporting events in 2012, including the Olympics

EVS typically performs better in “even” years when major sporting events drive a sharp increase in the company’s rental business.

 

Q4 2011 Results

For the fourth quarter of 2011 EVS revenue was €31m, an increase of 15.3% versus the same period a year ago, and up 22.7% excluding impact of exchange rates and large rental contracts, which are a major driver of the company’s business.

Gross margins for the fourth quarter were 78%, up from 76.6%, last quarter, but lower than the 81% reported last quarter.  The company attributed the higher year-over-year gross margin performance to higher sales.

Operating expenses increased by 30.5% in the fourth quarter partially due to increased employee headcount, costs associated with the departure of former CEO Pierre L’Hoest and a higher R&D tax credit in the fourth quarter of the previous year.

The company’s higher operating expenses in the quarter impacted its operating margins (EBIT), which dropped to 41.9% in the quarter, versus 43.9% last year and 46.6% last quarter.

On a segment basis, revenue was split fairly evenly between studio (51%) and outside broadcast (49%). Studio revenue was €15.83m, up 16.4% versus Q4 last year and up 37% versus last quarter.  Outside broadcast revenue was €15.13m, up 14.2% versus last year, and down 17% versus last quarter.

 

On a geographic basis:

  • Revenue from the EMEA region was €17.7m, up 7.7% versus last year and up 5% compared to last quarter

 

  • Revenue from the Americas region was €6.1m, up 46.7% versus last year and down up 11% versus the previous quarter.

 

  • APAC revenue for the quarter was €7.23m, an increase of 14.6% versus last year, and up 17% versus last quarter. 

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Full Year Results

For the year 2011, EVS revenue was €106.9m, down 3.8% versus last year, but up 6.3% excluding the impact of big event rentals and currency fluctuations. 

Full Year gross margins were 78.4%, down slightly from 2010 due to lower sales levels absorbing fixed assembling and support costs.

Operating expenses jumped 21.6% in FY11, due to increased headcount and higher commercial fees for distributors, but partially offset by the positive effect of a €1.1m R&D tax credit. 

The company invested heavily in personnel during 2011. On the company’s conference call with analysts, EVS said its full time employee roster had increased 13.4% to 415 at the end of 2011.  Included in this is a 51% increase in R&D staff.

As a result of these increased expenses the company’s operating (EBIT) margin fell to 41.3% of versus 50.0% in 2010.

Higher expenses also impacted the company’s net profit, which declined 15.7% versus 2010 to €32.1m. Excluding the company’s XDC digital cinema business net profit for the year was €31.7m for the year.

On a segment basis, revenue from studio declined 12.9% versus the previous year to €48.34m, or 45.2% of total revenue for the year.  OB revenue increased 5.2% versus FY 2010 to €55.7m, or 54.8% of total revenue.  Revenues in FY11 included €0.8m of rentals relating to the Winter Asian Games and to the Panam Games, compared to €10.2m in 2010.

 

On a geographic basis:

  • Revenue from EMEA in 2011 was €57.8m, down 5.1 versus 2010, representing 54.1% of group revenue. The company said that the UK, Eastern Europe and the Middle East were clear drivers of the business in 2011, and that it expects this to continue thanks to a major OB deal with Panorama in Russia as well as a large unnamed studio project in Eastern Europe.

 

  • Americas revenue for 2011 was €25.5m, down 7.8% versus 2010. EVS said that new OB vans and upgrades to HD continue to drive the business in the Americas in OB segment, but that the studio segment was weaker in 2011 than 2010.

 

  • 2011 revenue from the APAC region was €23.5m, up 11.3% versus 2010.  The company said that 11.3%). Malaysia, China and South Korea the most dynamic markets during the year, citing the continued high demand for European sport content on TV in APAC as a long term growth driver in the region.

 

Company CFO Jacques Galloy issued a mildy optimistic statement, saying: “As expected, sales in 4Q11 were higher, which allows us to record, for FY11, nearly stable sales, actually lower by 3.8% to €106.9m. The lower 41.3% EBIT margin is due to the increasing cost base as a result of additional employees during this year. We are very enthusiastic about our record order book, which prepares for a strong first half of 2012, partially driven by big sporting events. The second half of the year is more uncertain, and should be impacted by the usual market slow down following big events, the timing of the launch of expected solutions, and the macro-economic environment.”

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Related Content:

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Press Release: EVS Reports Revenue and Results for 2011

EVS Q4 and Full Year 2011 Analyst Presentation

Previous Quarter: EVS Reports Q3 2011 Results, Issues Strong Guidance

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

EVS CEO Pierre L’Hoest Steps Down

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Barco’s Revenues Rise 16.1% in 2011

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 09 2012

Barco announced that its revenue for the full year 2011 was €1.04Bn, an increase of 16.1% versus the full year 2010.   The company said all parts of the businesses with the exception of defense, air traffic control and the ventures as a group, grew during the year.

Order intake in 2011 was €1.09Bn, an increase of 10.7% versus last year.  The company said that BRIC countries together with Mexico, Japan, South-East Asia and Central Europe were among the best areas for growth in incoming orders.

The company’s net income for 2011 was €75.8m, up 74% versus 2010.

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On a geographic basis:

  • Revenue from the Europe, Middle East, Africa and Latin America (EMEALA) region was €444m, or 43.7% of total revenue.  EMEALA revenue grew 18.8% during 2011.

 

  • Revenue in North America contributed was €4347, or 33.3% of total revenue.  Sales in North America were up 8.6% versus 2010.

 

  • Sales in the Asia-Pacific region were €239.4m, or 23% of total revenue.  APAC revenue increased by 23% versus 2010.

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On a segment basis:

  • The Entertainment Division contributed €432.1m, an increase of 31.1% versus the previous year, driven by strength in the events market.  Barco also said that its renewed focus on the corporate AV segment has been “remarkably successful.”  The company said its entertainment business grew than 30% growth in the EMEALA region, almost 20% in North America and close to 50% in the APAC region. EBITDA in the Entertainment Division grew 6% to €63.8m, but EBITDA margins in the division dropped 3.5% due to substantial investment in R&D.

 

  • Sales in the Healthcare Division grew 10% to €192.5m, thanks to robust sales in both established markets as well as newer segments such surgical displays, dental imaging, and digital pathology. Barco said its Healthcare Division grew in all territories, with APAC growing 20% year-over-year.  Healthcare EBITDA for 2011 was €33.1m, up 16.4% versus last year.  Healthcare EBITDA margin increased from 16.2% to 17.2%.

 

  • Sales in the Control Rooms & Simulation division increased 16.1% to €214.3 in 2011, with the Europe and APAC regions each growing about 20%. Revenue for Simulation increased in the EMEALA and APAC regions but decreased in North America.  2011 EBITDA for the division €16.2m, up 9% versus last year, but EBITDA margin dropped from 8% to 7.5%.

 

  • Sales in the Defense and Aerospace division declined 1.7% to €115.8, despite a strong performance at the end of the year.  The EMEALA region grew its top line by 5.9%. The other two regions experienced negative growth Division EBITDA dropped 15% to €11.7m.

 

  • Revenue on the Ventures division was €88.2m, a decline of 4.2% versus the previous year, due primarily to weak sales in the APAC region.  EBITDA for the division was €5.5m versus and EBITDA loss of €17.5m last year.

 

Company president & CEO Eric van Zele said: “We are very pleased to see that Barco passed the ambitious billion euro mark. We progressed on many fronts and delivered on our promises for sustainable and profitable growth. Overall sales grew 16.1% year-on-year with Entertainment growing at 31.1%, Healthcare at 10% and Control Rooms & Simulation at 16.1%. Despite a very challenging macro-economic environment we not only succeeded in turning Barco around but also established global leadership positions in all of our core businesses. With EBIT margins moving up from 5.0% in 2010 to 7.5% in 2011 we further delivered on our promises related to profitability while our free cash generation of €81.2m illustrates good management of our working capital. End of December 2011 the net financial cash position of Barco stood at €61.1m compared to €8.9m a year earlier.”

 

 

Outlook for 2012

Barco issued the following statement about the coming year:

“With an eye on the future and realizing that the current economic environment is still very uncertain management believes that Barco’s momentum for profitable growth will be sustainable as the company continues to sharpen its focus on its core businesses and pursue alternative options for some other activities.”

 

 

 

Related Content:

Press Release:  Strong growth pushes Barco beyond 1 billion euro in sale

Barco FY 2011 Presentation to Equity Analysts

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

 

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Avid Posts First GAAP Net Profit Since 2007 in Q4 2011, Driving Shares Up 20 Percent

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 08 2012

Avid reported that its revenue for the fourth quarter of 2011 was $185.3m, down 5% versus the same period a year ago, and up 12% compared to the previous quarter.

Significantly, the company generated $14.4m in cash from operations during the quarter, and posted GAAP net income of $1.2m, Avid’s first positive GAAP net income since 2007.  On a non-GAAP basis Avid posted a profit of $14.6m, or 38 cents a share, versus non-GAAP net income of $14.2m last year.

The results exceeded the consensus estimates of analysts who were looking for revenues of $176.34m, and non-GAAP earnings of 16 cents per share.  The strong performance pleased investors who drove the company’s stock up more than 20% on the news.

The results were helped by a variety of factors including the impact of a previously announced restricting program, increased spending for the 2012 Olympics, and ongoing success with converting Apple Final Cut Pro (FCP) users to Avid’s Media Composer platform.  The company said that it had converted approximately 6,000 FCP users to Avid since Apple launched the FCP-X system in June of 2011.

On a geographic basis, the company said it experienced year-over-year growth in Europe during the quarter, but that sales in the Americas and Asia-Pac region declined versus last year.

Gross margins in the quarter were 54.1%, the highest since 2005, thanks to a favorable product mix, operational efficiencies and increased support revenues on modest spending growth.

Operating expenses for the quarter were $101.3m, down 7% versus last year.

Non-GAAP operating expenses were $88m, a $3.9m decrease year on year primarily related to the reduction in workforce announced in October of 2011 and lower variable compensation due to lower bonus payments.  This is the lowest non-GAAP operating expense figure that Avid has posted since the fourth quarter of 2004.

Avid says it will continue to ensure than spending is lower than revenue growth, and pointed out that it has reduced headcount by 600 people over the last four years, while increasing less expensive off-shore contractors.

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Highlights for the fourth quarter:

  • Video revenue in the quarter was $116.2m, down 1% versus the same period a year ago, and up 18% versus the previous quarter.  Video revenue accounted for 63% of the total revenue during the quarter, versus 60% last quarter.  The company said that professional editing had strong unit sales and that there was a year-on-year increase in Media Composer software revenue.  Shared storage and workflow systems were also strong in the quarter. However video revenue was down slightly overall because of lower hardware sales.

 

  • Audio revenue in the quarter was $69.1m, down 11% versus the same period a year ago, and up 4% versus the previous quarter. Revenue from Pro Tools declined on a year-over-year basis due to a very strong Q4 performance last year, when the first open version of the product was released.  Control surfaces and Pro Tools HD also experienced growth, but audio revenue declined in the “creative enthusiast” market, due mainly to weak demand in consumer markets as well as discontinued products.

 

  • Revenue from products was $148m, a decrease of 9% versus the same period a  year ago, and up 12% versus the previous quarter.  Product revenue accounted for 80% of the total revenue during the quarter, the same as last quarter.

 

  • Service revenue in the quarter (including maintenance support, professional services revenue, and training) was $37.3m, an increase of 15% versus last year.  The company said this was a record result for service revenue.

 

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Full year results:

Revenue for the full year 2011 was $677.9m, flat with 2010, and above previously issued guidance of $665m-$675m.

The GAAP net loss for the year was $23.8m, an improvement on the GAAP net loss of $37m in 2010. On a non-GAAP basis, the company’s net income for 2011 was $10.2m, versus non-GAAP income of $9.2m in 2010.

Gross margins for the year were 53% versus 52% in 2010, the highest they have been since 2005. Operating expenses for the full year were $386.9m, 2% lower than in 2010.

 

Guidance for 2012

Avid CFO Ken Sexton said he expects the company’s 2012 revenue to grow in the “low single digits” driven by growth from media enterprise customers.  The company says it is could achieve a non-GAAP operating profit of 5% for the year even if revenue is flat, and that it “could report a GAAP net income for 2012.”

 

Avid CEO Gary Greenfield issued an upbeat statement saying ““Our results for the fourth quarter were encouraging and reflect our continued efforts to streamline our operations and improve execution across the business.  For the quarter, we reported positive GAAP net income for the first time since 2007, positive cash flow from operations and the highest gross margin as a percent of revenue since 2005. In addition, we have implemented the restructuring we announced in October and expect to see additional benefit from these actions in 2012. We continue to identify and implement changes across the Company to help improve our operational performance and remain sharply focused on improving profitability while driving revenue growth.”

 

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Related Content:

Press Release: Avid Announces Results for Fourth Quarter 2011

Replay of Avid Earning Conference Call with Equity Analysts

Previous Quarter: Avid Posts $8 Million Net Loss for Q3 2011, Announces 10 Percent Workforce Reduction

Previous Year: Avid Announces Full Year Results, Nears Q4 Break Even as Revenue Increases 12 Percent

Avid To Cut Workforce by 10%, Close Facility, Take Q4 Charge of $10m-11m

Avid One of Five Companies Google Should Buy in 2012 – Forbes

Avid Brings Its “Pro-sumer” Video Editing App to iPad

 

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Ross Video Says Q1 2012 Revenue Jumps 59% in Best First Quarter in Company’s History

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 07 2012

Saying it experienced growth in all geographic territories, Ross Video announced that its revenue in the first quarter of 2012 increased 59% versus the previous year, and was the “best first quarter in company history.” Ross Video, which is privately held (and majority owned by CEO David Ross), did not disclose historic financials or other metrics such as profitability and margin performance. However, the company did disclose last year that its Q1 2011 revenue had jumped 44% versus the same period a year ealier.

According to the company, the first quarter of 2012 marks its 21st year of year-over-year sales growth at Ross, and the firm is on track to once again achieve record revenues. This streak has been entirely self-funded through both organic growth and strategic acquisitions.

“Quarter one was a great start to what is shaping up to be a great year,” said David Ross, CEO, Ross Video. “We are up 59% in our first quarter, we’ve put ourselves in a great position to continue to accelerate our growth, invest more in new product development and provide more local customer support around the world. I’d like to extend a big thank you to our business partners and customers for their continued support.”

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Related Content:

Press Release: Ross Video Continues to Grow

Previous Year: Ross Video Says Orders Jumped 44 Percent in Q1 2011

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