Digital Vision Reports Q1 2012 Loss, Plans Cost Reduction Program

Posted by Joe Zaller
May 14 2012

Sweden-based Digital Vision, a provider of tool to the post production industry, reported that its revenue for the first quarter of 2012 was $1.8m (SEK 13m).

These results do not include Image Systems, which Digital Vision acquired year, or Sawco Holdings and RemaControl, which were acquired recently. Including all the company’s businesses, revenue in the first quarter of 2012 was $3.9m (SEK 27.7m).

The operating loss in the quarter before depreciation and amortization was $1m (SEK -7.3m), and the after tax loss was $1.28m (SEK -9.1m).

Gross margins in the quarter were 62%, down from 76% last year. The company attributed the drop in margins to a shift in product mix due to the acquisition of Sawco Holding and RemaControl.   On an organic basis, the company’s gross margins in the quarter were 72%.

The company said it is instituting a cost reduction exercise designed to help it reach profitability as soon as possible.  The goal of this program is to reduce costs by at least $1.5m (SEK 11m).  The company says the program is progressing and that it will achieve the full effect of cost reduction program by the middle of the third quarter of 2012.

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Related Content:

Press release: Interim Report of Digital Vision AB (translated from Swedish)

Previous year: Digital Vision Q1 2011 Revenue Declines 27 Percent, New CEO Outlines Plan for Growth

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