Revenue Up, Profit Down at Orad in Q2 2012

Posted by Joe Zaller
Aug 23 2012

Graphics and media asset management (MAM) provider Orad reported that its revenue for the second quarter of 2012 was $10.2m, an increase of 17.1% versus the same period a year ago, and up 13% versus the previous quarter.  

The company did not break out revenue from UK-based MAM provider IBIS, which Orad acquired in 2011.

Net profit for the quarter was $638,000, down 26% versus last year, and down 24% versus last quarter. Net profit in the quarter was impacted by an unspecified finance charge of $209,000.

Gross margins for the quarter were 69% versus 70% last year, and 69.2% last quarter.

Operating income for the quarter was $919,000, up 14% versus last year, and up 33% versus the previous quarter.

Operating expenses were up across the board.  R&D expense for the quarter was $1.4m, or 14% of total revenue, up 24% versus the same period a year ago.  Sales & marketing expenses were $3.8m, or 37% of total revenue in the quarter, up 16% versus the second quarter of 2011. G&A expenses in the quarter were $899,000, or 9% of total revenue, up 1% from last year.

The company ended the quarter with 251 employees, up from 247 last quarter; and $9.6m in cash, compared to $17.6m last year and $9.2m last quarter.

 

First Half 2012 Results

For the first six months of 2012, Orad’s revenue was $19.1m, up 14.5% versus the first half of 2011. 

Net Profit for the 1H 2012 was $1.5m, flat with last year.  Gross Margins for the first half of 2012 were 69%, flat with 2011.

Operating income for 1H 2012 was $1.6m, up 27.7% versus last year.

R&D expenses for the first half of 2012 was $2.8m, or 15% of total revenue, up 15% versus the same period a year ago.  Sales & marketing expenses for 1H 2012 were $6.9m, or 36% of total revenue, up 13% versus the first half of 2011. G&A expenses in the 1H 2012 were $1.9m, or 10% of total revenue, up 7% from last year.

 

Orad CEO Avi Sharir said the company finished the first half of 2012 with the highest level of income in its history, and that weak macroeconomic environment in Europe, which accounts for approximately half of Orad’s revenue, had not impacted its results.

Sharir did not provide an update on the company’s continuing evaluation of registration its shares on the Tel Aviv Stock Exchange, which Orad disclosed last quarter.

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Related Content:

Press Release: Orad Results for the second quarter and for six months of 2012 

Previous quarter: Orad Revenue Up 12 Percent in Q1 2012 

More Broadcast Vendor M&A: Orad Buys 63 Percent of MAM Specialist IBIS for $2.11m

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