Revenue and Losses Up at Chyron in Q1 2012

Posted by Joe Zaller
May 03 2012

Broadcast graphics specialist Chyron reported that its revenue for the first quarter of 2012 was $7.9m, up 20% versus the same period a year ago, and down 2% versus the previous quarter. The company said its revenue in North America grew 24% versus last year, and that it had made good progress in Asia.

Chyron posted a net loss of $951,000 for the quarter, compared to a net loss of $437,000 during the same period a year ago, and a net loss $400,000 last quarter. The company’s operating loss for the first quarter of 2012 was $1.074m, compared to an operating loss of $863,000 last year, and an operating loss of $430,000 last quarter.

The company ended the quarter with $2.7m in cash, versus $4.2m a year ago.

Gross margins for the quarter were 70%, flat with the first quarter of 2011, and down from 71% last quarter.

Operating expenses in the fourth quarter of 2011 were $6.6m up 20% versus last year, and up 6% versus the previous quarter. The company attributed rising costs higher sales and marketing expenses (up 31% y/y), and higher research and development expenses (up 19% y/y), primarily related to integrating its Axis and graphics products lines.

The company’s service revenue, which includes the sales of its AXIS cloud-based graphics service, maintenance agreements, training and creative services was $2.1m in the quarter, or 26% or total revenue. This is an increase of 34% versus the same period a year ago, and flat with the previous quarter.

Product revenue in the quarter was $5.8m, an increase of 15% versus Q1 2012, and a decrease of 3% versus last quarter.

Chyron president & CEO Michael Wellesley-Wesley said he was pleased with the year-over-year growth in the quarter, and indicated that past investments are starting to bear fruit. “We continue to make investments in expanding our sales and marketing efforts, in order to build a more internationally diversified business. The results of the past few quarters indicate that we are beginning to benefit from the investments made in the past year to expand and enhance the capabilities of our sales force and the leadership of that team. We also remain dedicated to our focus on research and development for future product introductions. We operate in a highly competitive market space, and innovation is critically important in maintaining and expanding market share.”

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Related Content:

Press Release:  Chyron Reports Financial Results For The First Quarter Of 2012

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

Previous Quarter: Chyron Grows Top Line 15% in Q4 2011, But Losses Persist

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