Pilat Media Posts Loss in 2011 as a Result of Lawsuit with Fox Television Stations

Posted by Joe Zaller
Mar 28 2012

Broadcast business management solutions provider Pilat Media announced that its revenue for the full year 2011 was £22.5m, up 3% versus 2010. However, Pilat’s profitability was impacted by the legal fight with Fox Television Stations (FTS) during the year.

Pilat and FTS settled their legal dispute in November of 2011, with Pilat receiving £544,000 from Fox. However, because FTS discontinued the use of Pilat’s software, the company had to write down £2.3m of receivables that would have otherwise been paid by Fox. As a result, Pilat had a loss from operations £900,000 versus a profit of £2.2m in 2010.

Pilat’s 2011 revenue was boosted by higher margin revenue stream such as license and maintenance fees which grew by 7% and 5.6% respectively.  Revenues from professional services, were £13.7m, of 61% of total revenue in 2011 versus 62% in 2010. Significantly, recurring revenue from software maintenance fees represented 26% of the total revenue in 2011, an increase of 5.5% versus 2010.

Gross margins for the year were 51.1%, a decrease of 5.7% versus 2010.  The company attributed the margin compression to staff and training costs associated with bringing new customers online.  The company also said its G&A costs increased during the year (20% of revenue) because of a number of one-off expenses including additional legal fees related to the FTS litigation.

The company said it is strongly positioned for the future and that it expects support and maintenance revenues to continue to grow over in the future as more customer projects are completed. However this growth will be moderated by 5% due the loss of maintenance revenue from FTS.

Commenting on the results, Michael Rosenberg, Chairman of Pilat Media Global plc, said: “We are pleased that revenues increased to their highest ever level despite the uncertainty in the market that causes some projects to be delayed. The revenue backlog and sales pipeline remain healthy.  The Company is involved in a number of sales opportunities that we are hopeful will be concluded successfully in the Company’s favor in the next few months.”



Related Content

Press Release: Pilat Media Global PLC 2011 Results

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