Broadcast graphics specialist Chyron reported that its revenue for the second quarter of 2012 was $7.7m, down 18% versus the same period a year ago, and down 3% versus the previous quarter.
Revenue in North America declined 27% versus last year when the company had a large one-off order that was not repeated.
International revenue grew 9% versus last year. EMEA revenue was down in the quarter but this was offset by gains in Latin America and APAC, which the company said each increased considerably on a percentage basis versus the previous year.
The net loss for the quarter was $600,000, versus net income of $100,000 last year, and a net loss of $951,000 last quarter. The company’s operating loss for the quarter was $1.1m, versus an operating profit of $200,000 last year, and operating loss of $1.074m last quarter
Gross margins for the quarter were 69.2%, down from 69.6% last year, and down from 70% from last quarter.
Operating expenses in the quarter were $6.4m, down slightly from last year. R&D expenses for the quarter were $1.9m, up 17% versus last year. Sales & market expenses for the quarter were $3.5m, up 9% versus last year. G&A expenses in the quarter were $1m, down by 33% versus last year, due primarily to reduced fees for legal and professional fees.
The company’s service revenue, which includes the sales of its AXIS cloud-based graphics service, maintenance agreements, training and creative services was $1.9m in the quarter, or 25% or total revenue. This is a decline of 5% versus the same period a year ago, and a decline of 10% versus the previous quarter.
Product revenue in the quarter was $5.8m, or 75% of total revenue for the quarter. This represents a decline of 22% versus the same period a year ago, and flat with the previous quarter.
Results for first six months of 2012
Revenue for the first six months of 2012 was $15.6m, down 3% from the same period a year ago.
Service revenues for the first half were $4.0m, or 26% of total revenue. This represents an increase of 13% over the prior year’s first half. Axis revenues increased 8% and maintenance agreements revenues increased 22%, but other services revenues decreased primarily due to a decline in creative services revenues. Product revenues for the first half were $11.6m, a 7% decline compared to the first half of 2011. Product revenues represented 74% and service revenues 26% of total revenues for the first half of this year as compared to 78% and 22%, respectively, for the first half of last year.
Net loss for the first half of 2012 was $1.6m, versus a net loss of $400,000 last year. The operating loss for the first half of the year was $2.2m, versus an operating loss of $600,000 in the first half of 2011.
Gross margins for the first half was 69.8%, flat with last year.
Operating expenses during the first half of the year were $13m, an increase of 10% versus last year. Increases of 18% in R&D expenses to $3.9m and 19% in sales & marketing expenses to $7m were somewhat offset by a 19% decline in General and Administrative expenses to $2.2m.
The company ended the quarter with $2.75m in cash, versus $4.2m six months ago.
“While the financial results of the second quarter did not meet our expectations, we expect that the second half of the year will produce improved operational and financial results,” said Chyron CEO Michael Wellesley-Wesley. The biggest impact was less than anticipated sales in our North American markets combined with the ongoing softness in Europe. We believe that purchasing managers are reacting to the potential for a second leg of the recession and becoming more conservative in their purchasing decisions.”
Press Release: Press Release: Chyron Reports Financial Results For The Second Quarter And First Six Months Of 2012
Previous Quarter: Revenue and Losses Up at Chyron in Q1 2012
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