Pilat Media Revenue Flat in Q1 2012

Posted by Joe Zaller
May 30 2012

Broadcast business management solutions provider Pilat Media announced that its revenue for the first quarter of 2012 was £5.05m, flat with the same period a year ago.  Excluding a large one-off third-party software sales last year, the company said that its underlying revenues grew by 10% versus Q1 of 2012.

Revenue for implementation services was £3m in the quarter, an increase of 21.1% versus the same period a year ago. The company said these services were mostly provided to existing clients and demonstrate that it can generate incremental revenue from current customers.

Maintenance revenues decreased 12% to £1.35m due to the termination of the contract with FOX Television Stations Inc. and the restructuring of a contact with another client. The company said its maintenance revenues will begin to increase in 2013, after the current projects it is implementing go live at customer sites.

Licensing revenue in the quarter was declined 15% to £384,000.

Gross margins in the quarter were 45.3% versus 44.1% last year.  The company said gross margin are below its annual average due to additional expense related to the implementation of new customer projects. Pilat said that it expects its full year margins to increase once new contracts are signed and the mix of work returns to normal.

R&D costs in the quarter were £822,000, up 6.6% versus last year. Sales and marketing costs in Q1 2012 were down 23% versus last year due to lower travel costs. General and administrative costs were  down 5% to £977,000 thanks to a change in organizational structure in late 2011.

 

Outlook

The company said that while it is too early to forecast its performance for the full year 2012, it expects the combination of new contracts and demand from existing clients to help it reach and possibly exceed its 2011 performance. Pilat also said that it is working to control in case the signing of new contracts is delayed, but added that it believes it will continue to generate cash, and is now “examining the best uses for this cash surplus.”

      

Related Content

Press Release: Pilat Media Global PLC, Results for the three months ended 31 March 2012

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

Previous Year: Pilat Media Posts Small Loss for First Quarter of 2011

Pilat Media and Fox Television Stations Settle Legal Dispute

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