Pilat Media Revenue Declines 7 Percent in Q2 2012

Posted by Joe Zaller
Sep 07 2012

Broadcast business management solutions provider Pilat Media announced that its revenue for the second quarter of 2012 was £5.41m, down 7% versus the same period a year ago, and up 7% versus the previous quarter. The company said the results were in line with its expectations.

Q2 revenue included £690,000 (down 37% y/y) new IBMS licenses recognized during the quarter, £3.37m (up 5% y/y) for implementation services, and £1.35m (down 7% y/y) of recurring maintenance and support fees from “live” clients.

The company attributed the decline in maintenance income to the termination of its contract with FOX Television Stations Inc. Last quarter, Pilat said it expects its maintenance revenues to increase in 2013, after the current projects it is implementing go live at customer sites.

Gross margins in the quarter were 49.26% versus 56.4% last year, and 45.3% last quarter.

The company attributed the year-over-year decline in margins to a large number of licenses renewed in the previous year quarter, as costs associated with a various implementation projects that are close to completion. Pilat reiterated its statement from last quarter that it expect the annual average gross margin for the full year 2012 to be on par with 2011 as new contracts are signed and the mix of work returns to normal.

R&D costs in the quarter were £780,000, down 3% versus last year, and down 5% versus last quarter.  Sales and marketing costs in Q2 2012 were up 8%, but flat through the first six months of the year. General and administrative costs were flat with the previous year.

 

Related Content

Press Release: Pilat Media — Results for the six months ended 30 June 2012

Previous Quarter: Pilat Media Revenue Flat in Q1 2012

Pilat Media and Fox Television Stations Settle Legal Dispute

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