Archive for the ‘Quarterly Results’ Category

Autodesk Media & Entertainment Revenue Flat in Q2 FY 2015

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Aug 19 2014

Autodesk reported that its Q2 FY 2015 revenue from its Media and Entertainment (M&E) segment was $44m, flat versus the same period a year ago, and up 15.8% compared to the previous quarter.

Revenue from animation products decreased 2% versus the same period a year ago, while sales of creative finishing products increased 7% compared to the second quarter last year.

The company said that its results “reflect general changes in the M&E industry end-market demand environment, the planned inclusion of our M&E products in other Autodesk industry suites, and the business model transition as customers are opting for desktop subscription.”

M&E gross margins for the second quarter of fiscal 2015 were $34m (72.7%), down from 79% for the same period a year ago, and down from 76.3% in the previous quarter.

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Related Content:

Press Release: Autodesk Reports Record Revenue Results in Q2 FY 2015

Previous Year: Autodesk Media & Entertainment Revenue Declines 11 Percent in Q2 FY 2014

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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DTS Reports Strong Q2 2014 Results; Revenue Growth of 33% Year-over-Year

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Aug 18 2014

Audio processing specialist DTS announced that its revenue for the first quarter of 2013 was $36.2m, an increase of 33% versus the same period a year ago, and flat versus the previous quarter.

On a GAAP basis net income for Q2 2014 was $7m, or $0.41 per, share compared to a net loss during the year earlier period of $2m or $(0.11) per share.  Net income for Q1 2014 was $5.6m or $0.32 per share.

GAAP gross margins were 93% during the quarter up slightly from the 91% gross margins recorded during Q2 2013 and flat compared to the Q1 2014.

Non-GAAP operating margins were 31% during the quarter.  This compares favorable versus the same period last year where non-GAAP operating margins were 13% and the preceding quarter when non-GAAP operating margins of 24% were recorded.

Jon Kirchner, DTS’s Chairman and CEO attributed the principal driver of top line growth in the quarter to “further penetration of the network connected segment as well as the resolution of several royalty audit matters.”

DTS’s network connected segment is the company’s largest.  It includes revenue generated from consumer electronic devices that are network-capable including TVs, smartphones, tablets, and PCs.  This segment contributed 50% of DTS’s revenue in the quarter compared to 45% during the year earlier period.  Melvin Flanigan, the Company’s CFO, highlighted the TV business within the network connect segment on the company’s earnings call as having grown 27% year-over-year.

DTS closed the quarter with cash and investments totaling $69.5m and generated $5.5m in operating cash flow.

In his prepared remarks on the call with analysts, Kirchner offered some interesting commentary on DTS’s relevance to 4K.  “DTS’ solution suite is particularly relevant as the market resets to support 4K or ultra high definition delivery which we believe will be disrupted with playback devices and will also require content services to rethink their high definition audio and video offerings. Already, DTS has partnered with companies to develop proof of concept 4K video distribution with DTS HD audio solutions specifically designed for OTT.”

 

Guidance Raised for Full Year 2014

DTS says it expects its organic growth in 2014 to come primarily from the network-connected markets, specifically connected TVs, mobile devices and PCs. Network-connected markets are expected to represent more than 50% of total revenue in 2014.

As a result of the strong performance in the quarter and management’s confidence in the remainder of the year, DTS raised its guidance for 2014.

The company says it is now expecting revenues in the range of $137m to $142m, non-GAAP operating margins in the mid-to-upper 20s, and non-GAAP EPS of $1.40 to $1.50.  Previous guidance was for revenue in the range of $132 million to $138 million, non-GAAP operating margins in the mid-20s, and EPS in the range of $1.20 to $1.40.

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Related Content:

Press Release: DTS Reports Strong Second Quarter 2014 Financial Results

Previous Year: DTS Posts Q2 2013 Loss, Lowers Full Year Outlook

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Orad’s Revenue Jumps 40.7 Percent in Q2 2014

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Aug 18 2014

Graphics and media asset management (MAM) provider Orad reported that its revenue for the second quarter of 2014 was $10.2m, an increase of 40.7% versus the same period a year ago, and up 9.7% versus the previous quarter.

Product sales in Q2 2014 were $7.5m, or 73.7% of total revenue, an increase of 33.4% versus the 2nd quarter of last year when product sales were $5.6m, or 77.7% of total revenue.

Service revenue in the quarter was $2.68m, or 26.3% of total revenue, an increase of 65.9% versus the 2nd quarter of last year when service revenue was $1.62m, or 22.3% of total revenue.

Net profit for the quarter was $800,000, versus a loss of $1.3m during the same period a year ago, and up 14.2% versus last quarter.

Gross margins for the quarter were 69.3% versus 62.5% last year, and 67.8% last quarter.

Operating income for the quarter was $900,000, versus an operating loss of $1.5m during the second quarter of 2013, and operating income of $800,000 last quarter.

Operating expenses were up across the board.

R&D expense for the quarter was $1.54m, or 15.1% of total revenue, up 5.8% versus the same period a year ago.

Sales & marketing expenses were $3.7m, or 36.4% of total revenue in the quarter, up effectively flat versus the third quarter of 2013, when sales and marketing costs were 51% of total revenue.

G&A expenses in the quarter were $899,000, or 8.8%% of total revenue, up 5.4% from last year.

Cash, cash equivalents and restricted cash at the end of June 2014 amounted to $7.6m compared to $6.4m at the end of March 2014.

 

First Half 2014 Results

For the first six months of 2012, Orad’s revenue was $19.5m, up 35.2% versus the first half of 2013.

Product sales for the first six months of 2014 were $14.8m, or 76.1% of total revenue, an increase of 36.2% versus the same period a year ago, when product sales were $10.9m, or 75.6% of total revenue.

Service revenue for the first six months of 2014 was $4.65m, or 23.9% of total revenue, an increase of 36.2% versus the same period a year ago, when product sales were $10.9m, or 75.6% of total revenue.

Net Profit for the 1H 2012 was $1.5m, versus a loss of $2.2m for the first six months of 2013.  Gross Margins for the first half of 2012 were 68.6%, up from 63.5% for the first six months of 2013.

Operating income for 1H 2012 was $1.7m, compared to a loss of $2.2m for the first half of 2013.

R&D expenses for the first half of 2014 were $3m, or 15.5% of total revenue, up just under 1% versus the first six months of last year when R&D expenses represented 20.7% of total revenue.

Sales & marketing expenses for 1H 2014 were $6.7m, or 34.7% of total revenue, up 3.2%% versus the first half of 2013 when S&M expenses represented 45.5% of total revenue.

G&A expenses in the 1H 2014 were $1.9m, or 9.8% of total revenue, up 9.9% versus the first half of 2013 when G&A expenses represented 12.1% of total revenue.

 

 

Outlook

Orad says that it is expecting its revenue for the full year 2014 to be between $39m and $40m, in line with previous projections. If the company achieves the projected top-line results, it would represent an increase of 22% to 26% compared to 2013.

Full year operating profits for 2014 are expected to be approximately 6% to 8% of revenues, compared to the operating loss of 5% in 2013.

 

“We are pleased to announce the results of this quarter which show the highest level of quarterly revenues in the Company’s history,” said Orad CEO Avi Sharir. “Revenues for the first half of 2014 show an increase of 35% compared to the same period in 2013. This substantial increase in revenues is attributed to the return of our traditional markets and the higher penetration in new markets such as North America. We have recently announced several important sales in North and South America to major American and Brazilian broadcasters. Our efficient and cost effective solutions enable broadcasters to substantially increase their ROI by providing them efficient and cost effective solutions.

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Related Links:

Press Release: Orad Reports Financial Results for the Second Quarter and the first six months of 2014

Previous Year: Orad Revenue Declines 29% in Q2 2013, Announces 10% Workforce Reduction

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Vitec Group 1H 2014 Results: Videocom Down 1%, Bexel up 39.9%

Broadcast technology vendor financials, Broadcast Vendor M&A, Quarterly Results | Posted by Joe Zaller
Aug 14 2014

The Vitec Group, which owns more than a dozen brands in the broadcast industry as well as technical services company Bexel, said that its total revenue for the first six months of 2014 was £152.9m, a decrease of 3% versus the first six months of 2013.

Operating profit for the first half of 2014 was £19.2m, down 3% versus last year.

Despite the lower top-line results the company achieved an operating margin of 12.6%, equal to the first six months of 2013.

On organic basis at constant currency, its revenue was up 3.8% versus the first half of 2013, and that its operating profit increased by 6.3%

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Vitec Videocom Division

Vitec’s broadcast-focused Videocomm division is made up of more than dozen brands that serve various parts of the broadcast industry: Anton/Bauer, Autoscript, Camera Corps, Teradek, The Camera Store, Haigh-Farr, Litepanels, Microwave Service Company, Nucomm, OConnor, Petrol Bags, RF Central, Sachtler, Vinten and Vinten Radamec.

For the first six months of 2014, Videocom revenue was £69.5m, down 1% versus the first six months of 2013.

Videocom operating profit for 1H 2014 was £8.5m, down 2.3% versus last year, resulting in an operating margin of 12.2%, flat with the year earlier period. Operating profit on a constant exchange rate basis was up by 1.2%.

Profitability was helped by the cost control measures and a restructuring program of the Videocom division, which Vitec says is now largely complete.  The company also said that it has also close to completing completed the relocation of certain UK manufactured products to Costa Rica completed to schedule in the first half of 2014.

The company also said that it results were helped by the Sochi Winter Olympics, and a strong performance from Teradek, which was acquired by the Vitec Group during the second half of 2013. Based on the success of Teradek during the period, Vitec made a $3.2m “earnout” payment to Teradek’s former shareholders in March 2014. This consisted of $2.4m in cash, and 72,933 new Vitec ordinary shares worth a further $800,000.

Offsetting the strength of Teradeck and the boost from the Olympics was a poor performance by the IMT business, a “relatively small part of the Videocom division” that provides microwave and which provides wireless microwave products to customers in the Military, Aerospace and Government (MAG) market.

 

Vitec Group 1H 2014 -- Videocom performance

 

The IMT business posted a loss of £1.1m during the first half of 2014, compared to a profit of £1.4m for the same period a year ago.  IMT’s 1H 2014 revenue was £5.8m, down 35% versus the same period last year. For the full year 2013, IMT broke even on revenue of £14m

As a result of the poor performance in MAG space, which Vitec says is an “increasingly challenging market that has become overly price driven,” the company has decided to exit its IMT business, and is currently assessing its options of a sale or closure.”

Vitec says that the divestiture of the IMT business will allow it to focus the Videocom division on its core broadcast activities.

The company highlighted the performance of several its brands, saying:

Our camera supports brands experienced a lower level of project activity. However we have continued to grow sales of our premium robotics products across all regions

 

  • Prompters performed in line with last year

 

  • Litepanels LED lighting products and Anton/Bauer mobile power products performance has been lower than expected. We are in the process of broadening our LED lighting product range to maintain our leading position in the market, and are launching some new, innovative mobile power products.

 

  • The Teradek business that we acquired in H2 2013 is performing well with strong growth post-acquisition. The business continues to develop innovative products, including the new Bolt wireless transmitter that was released in July 2014 and further product launches are planned for later in the year.

 

 

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Vitec Services Division (Bexel) Revenue Jumps 39.9 Percent

For the first half of 2014, revenue from Vitec’s Services Division, which primarily comes from Bexel, was £19.8m, up 39.9% versus the first six months of 2013.

Vitec Group 1H 2014 -- Services (Bexel) performance

The company attributed Bexel’s growth to contracts associated with the Sochi Winter Olympics, the FIFA World Cup, and an increase in in its rental business.

Bexel’s operating profit for 1H 2014 was £2.1m compared to £200,000 last year.  This translates to an operating margin of 10.9% for the first half of 2014, versus an operating margin of 1.4% for the year ago period.

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M&A Activity: Two Businesses Acquired During 1H 2014

Vitec purchased to companies during the first six months of 2014.

In March 2014, the Videocom division acquired the assets of the Specialty Cameras division of SIS Outside Broadcasts Limited through a business combination for a cash consideration of £1.8m, and a potential earnout of up to £1.4m. The deal gives Vitec new specialty camera including the “Stump Cam” used in international cricket matches, and the “Plunge Cam” that tracks high divers from the dive to underwater.

In April 2014, Vitec reached an agreement to acquire UK teleprompter vendor Autocue, for a net consideration of £6m. This deal has yet to close, as it is subject to clearance by the UK Competition and Markets Authority.

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Related Content:

Press Release: The Vitec Group plc Half Year Results to 30 June 2014

Press Release: The Vitec Group plc 2013 Full Year Results

Previous Year: Vitec Group 1H 2013 Results: Videocom Revenue Down 5.1 Percent, Bexel Flat

Broadcast Vendor M&A: Vitec Buys Teradeck for $15 Million

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Avid Nears Completion of Accounting Audit, Says Normal Financial Reporting Cycle to Resume in Q3 2014

Broadcast technology vendor financials, Quarterly Results, SEC Filings | Posted by Joe Zaller
Aug 13 2014

Avid, which since February 2013 has been conducting an internal investigation into its current and historical accounting treatment related to software updates, said in a regulatory filing that in approximately four weeks, it expects to have completed its accounting audit and filed its annual report (Form 10-K) for the fiscal year ended December 31, 2013.

Because of its 18 month-long internal accounting audit, the company has not been able to file financial results with securities regulators since the third quarter of 2012.

This delay ultimately resulted in Avid’s stock being delisted from The NASDAQ Stock Market on February 25, 2014.

But with today’s announcement, it appears that the audit is nearly completed.

Avid now says that its 2013 Form 10-K will include results for the fiscal year ended December 31, 2012 and restated results for the fiscal year ended December 31, 2011. The company said it also intends to file its Form 10-Q for each of the three-month periods ended March 31, June 30 and September 30, 2013 concurrently with the 2013 Form 10-K filing.

The company will then file its Form 10-Q for the period ended March 31, 2014 approximately one week after filing the 2013 Form 10-K and file Form 10-Q for the period ended June 30, 2014 approximately 40 days later.

Avid then expects to be back to a normal reporting cycle beginning with the reporting of results for the third quarter of 2014.

When the Avid does report its financials, it will bring an end to a process that began in February 2013 when the company announced that it would delay the announcement of its Q4 and full year 2012 results in order “to provide additional time for the company to evaluate its current and historical accounting treatment related to bug fixes, upgrades and enhancements to certain products which the company has provided to certain customers.”

That news came just two weeks after Avid named Louis Hernandez, Jr. to replace Gary Greenfield as the company’s president and CEO.

In May of 2013, Avid said that, as a result of its internal review, the company had determined that its financial statements from 2009 – 2011 are no longer reliable, and must be restated “because of errors in the application of US GAAP.”

At issue is the historic accounting treatment the company applied for certain software upgrades, dating back to 2009, which were made available to certain of its customers at no-charge. Avid management said in August 2013 that it has now determined that these upgrades should have been accounted for as “implied post-contract customer support” under US GAAP accounting rules.

The problem is that Avid has had a lot of transactions since 2009, and each one must be reviewed.

In January 2014, the company said it had made significant progress toward completion of the restatement, including evaluating transactions over an eight-and-a-half year period, encompassing a review of approximately 5 million transaction lines and 700 software releases.

Not only is this a time-consuming process, it’s also expensive. In January 2014, Avid said its cash expenditures in 2014 related to the ongoing accounting evaluation through completion of the evaluation will amount to approximately $25m to $34m.

On June 30, 2014 Avid’s cash and debt balances were $23m and $5m respectively, $48m no debt at on December 31, 2013.

Avid says it expects remaining payments related to the restatement as of July 1, 2014 to amount to approximately $12m to $14m.

Despite its well-publicized financial woes over the past few years, our market research during this same period shows that Avid continues to enjoy a strong brand reputation and customer loyalty, particularly among broadcasters and large media companies.

It’s also interesting to note that, while it may be a coincidence, the timing of Avid planned release of its historic financials more or less exactly coincides with the AvidConnect Europe event, and the 2014 IBC trade show in Amsterdam.

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Related Content:

Press Release: Avid Announces Timeline for Restatement

Avid to be Delisted from NASDAQ on February 25, 2014

Avid Receives Anticipated NASDAQ Delist Letter

New Avid Rights Agreement Will Cause “Substantial Dilution” to Potential Acquirers

Avid Unlikely to Regain Compliance with NASDAQ Listing Requirements by March 2014 Deadline

Avid Technology and Computershare Trust Company as Rights Agent, Rights Agreement Dated as of January 6, 2014

Avid Receives Additional Notice of Potential NASDAQ Delisting

Avid Delays Filing of Q2 2013 Financial Results and Form 10-Q

New Avid Bonus Plan Contemplates “Reorganization Event”

Avid Says its 2009 – 2011 Financial Statements No Longer Reliable

Avid Delays Release of Q4 and Full Year 2012 Results, Shares Fall

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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ChyronHego Posts First Profit in Three Years in Q2 2014

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Aug 13 2014

Broadcast graphics specialist ChyronHego announced that its revenue for the second quarter of 2014 was $14.7m, an increase of 37% versus the year earlier period, and an increase of 16% compared to the previous quarter.

The company said it experienced year-over-year growth in all geographies with the exception of Asia.

The $4m year-over-year revenue increase was substantially accounted for by the contribution of last year’s acquisition of Hego AB.  The Q2 2013 period only included the results of operations for Hego and its subsidiaries after May 22, 2013, the closing date of the transaction.

Q2 2014 net income was $2.9m or $0.08 per share.  This represents the first quarter of profitability for the company since Q2 2011.  During the same period a year ago, the company posted a net loss of $2.1m, or $(0.09) per share.

It is important to note Q2 2014 benefited from a favorable $2.2 million mark-to-market adjustment of the company’s contingent liability stemming from last year’s Hego acquisition.  Excluding this adjustment, the ChyronHego’s net income would have been $0.8 million for the quarter.

We are very excited to show our first profitable quarter since quarter two 2011,” said company CEO Johan Apel. “Our efforts in both keeping cost under control and driving revenue growth are bearing fruit. We are expecting the growth in revenues to continue for the coming quarters. We are in terms of revenues ahead of our plan both in the U.S. and the Europe, and we have a positive outlook regarding development of these markets.”

Gross margins in the quarter were 62%, down from 68.4% a year ago. The company attributed its margin compression to an increase in lower margin service revenue, which accounted for $7.06m, or 48% of total revenue during the quarter, up from 37% of total revenue in Q2 2013.

During the quarter, ChyronHego closed on the acquisition of ZXY Sports Tracking announced at NAB.  The Company also indicated the WeatherOne acquisition, also announced at NAB, closed on July 1 of this year.

On the company’s conference call with equity analysts, Dougherty & Co analyst Steve Frankel asked Apel about ChyronHego’s addressable market size.  The figures cited by Apel were from a report published in 2011, which has since been substantially updated.  Therefore, it stands to reason the company’s addressable market may change once the updated market sizing values from the recently released IABM DC Global Market Valuation Report are reviewed by ChyronHego’s management team.  This will be an interesting subject to track in future investor messaging from the company.

The conversation with analysts also provided additional context on ChryonHego’s recent $50 million share shelf offering.  Responding from a related questions from Marty Elbaum of Horizon Networks, Apel said, “We have filed a shelf to be ready to be able to pull the trigger if the market conditions are right and if there are business reasons for us to raise money. So that said, trying to make sure that there are no people out there really scared of the huge dilution just around the corner. That is not our intention. We are just trying to make sure that we have all the legalities in place to be able to – if there is a need, raise money for acquisition purposes and so forth.”

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Related Content:

Press Release: ChyronHego Reports Profit for the Second Quarter 2014

Previous Year: Hego Merger Drives 39 Percent Revenue Increase for Chyron in Q2 2013

ChyronHego S3 Filing: – Prospectus for $50 million of Common Stock

More Broadcast Vendor M&A: Chyron to Acquire Hego Group in All-Stock Deal

Chyron – Hego Stock Purchase Agreement

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Strong MAM Sales Drive 23 Percent Revenue Increase for Dalet in Q2 2014

Broadcast technology vendor financials, Broadcast Vendor M&A, Quarterly Results | Posted by Joe Zaller
Jul 30 2014

MAM and newsroom specialist Dalet reported that its consolidated revenue for the second quarter of 2014 was €10.7m, up 23% versus the same period a year ago, and up 42% versus the previous quarter.

Excluding a contribution of €1m from AmberFin, which Dalet acquired in April 2014, the company’s revenue in the second quarter of 2014 was €9.7m, up 23% versus the same period a year ago, and up 27.6% versus the previous quarter.

Dalet published the table below to show the difference impact of the AmberFin acquisition.

Dalet Q2 2014 Results with and without AmberFin

 

Gross margins for the second quarter of 2014 were 82%, down from 89% last year, and up from 79% last quarter.   This is the second consecutive drop in gross margins comparted to the previous year.  The company attributed the lower y/y margin performance to due to a less favorable sales mix in the quarter.

 

On a product basis:

  • Asset management revenue was €5.35m, or 50% of total revenue in the quarter

 

  • TV Newsroom systems revenue was €2.89m, or 27% of total revenue in the quarter

 

  • Sport solutions revenue was €535,000, or 5% of total revenue in the quarter

 

  • Radio solutions revenue was €1.6m, or 15% of total revenue in the quarter

 

  • Integration revenue was €321,000, or 3% of total revenue in the quarter

 

In terms of sales mix, license revenues decreased from 33% of sales in H1-2013 to 28% in H1-2014, associated professional services evolved from 30% to 23%, resale of hardware increased from 16% to 23%, recurring support revenues increased from 22% to 26% of revenues.

 

The company said that sales in the Americas increased by 21%, and the region now accounts for 40% of consolidated revenue. The increase in Americas revenue may be due in its win at Fox Sports 1, which is using Dalet’s “Sports Factory” as the end-to-end production and MAM system.  Fox Sports 1 launches on August 17, 2013.

Europe accounted for 48% of revenue, while MEA and Asia-Pacific accounted for 8% and 4% respectively.

The company did not disclose any other financial metrics, including profitability.

 

Results for the First Half of 2014:

For the first six months of 2014, the company’s consolidated revenue was €18.4m, up 20% versus the first half of 2013.  Excluding AmberFin, the company’s revenue for the first six months of 2014 is up 13% versus the same period in 2013.

Gross margins for the first half of 2014 were €14.9m, or 81%, down on a percentage basis from 87% for the first six months of 2013.

Dalet ended the second quarter of 2014 with €6.5 in cash, down from€7.7m on December 31, 2013.

Debt on June 30, 2014 stood at €5.6m, up from €2m on December 31, 2013, following the €3.4 million loan taken to finance AmberFin`s acquisition.

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Related Content:

Press Release: Dalet Revenues for First Six Months of 2014: €18.4 million

Broadcast Vendor M&A: Dalet Acquires AmberFin

Previous Quarter: Dalet Revenue Grows 3 Percent in Q1 2014

Previous Year: Dalet Up 7 Percent in Q2 2013 Thanks to Big Jump in Americas Revenue

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Brightcove Revenue Up 15% in Q2 2014, But Soft Guidance Crushes Stock

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Jul 25 2014

Online video delivery specialist Brightcove announced  its revenue for the second quarter of 2014 was $31 million, up 15% from the same period a year ago, and down slightly versus the previous quarter.

Although Brightcove’s top-line results were better than the upper end of the company’s previous guidance, it posted a Q2 net loss of $4.3 million, versus a net loss of $3.5 million last year and a net loss of $4.8 million during Q1.

The company also revised down its guidance for the full year, due in part to the loss of Rovio, the company behind the Angry Birds franchise and one of Brightcove’s largest European customers.  During the first half of 2014, Rovio represented 3.8% of Brightcove’s total revenue and a little less than 15% of its total video stream volume.

Investors were quick to react to the revised forecasts, driving the company’s stock down almost 40% to less than $6.50.  Brightcove had traded as high as $24.80 shortly after its IPO in early 2012.

On a positive note, the company said its revenue from media customers grew at 31% on a year-over-year basis.  “While we continue to see a broad market opportunity and strong demand for our products across a number of industries, we are seeing positive results from our increased focus on the media vertical,” said Brightcove CFO Chris Menard.

Brightcove also said it experienced a 7% year-on-year increase in “premium customers” in the quarter. Brightcove defines premium customers as those who are on annual subscription contracts for the enterprise and pro versions of its “Video Cloud,” “Once,” and “Zencoder” product offerings.

Revenue from premium customers during Q2 was $28.4, up 18% versus the same period a year ago, and flatversus the previous quarter.  The company said it had 1,833 premium customers, or 30.6% of its total customer base, at the end of the second quarter.  This represents an increase of 7% versus the same period ago, and an increase of 0.5% versus the previous quarter.

Subscription and support revenue in the quarter was $29.9 million, or 97% of total revenue, up 17% versus last year, and up approximately 2% versus last quarter.

Professional services revenue was $1 million, down 19% versus last year, and down 41% versus last quarter.

 

On a geographic basis:

  • North America accounted for $18.5 million, or 60% of total revenue in the quarter, compared to $15.8 million, or 59% of revenue last year, and $18 million, or 58% of total revenue last quarter

 

  • Europe contributed $7.7 million or 25% of total revenue in the quarter, compared to $6.5 million, or 24% of revenue last year, and $8.6 million, or 27% of total revenue last quarter

 

  • Japan contributed $2 million, or 6% of total revenue in the quarter, compared to $1.5 million, or 6% of revenue last year, and $1.9 million, or 6% of total revenue last quarter

 

  • Asia Pacific (excluding Japan) contributed $2.5 million, or 8% of total revenue in the quarter, compared to $2.9 million, o or 11% of revenue last year, and $2.3 million, or 7% of total revenue last quarter

 

 

On a segment basis:

  • Digital marketing and enterprise customers was $17.7 million, or 57% of total revenue in the quarter, compared to $16.7 million, or 62% of revenue last year, and $18.3 million, or 59% of total revenue last quarter. The company said that revenue from digital marketing and enterprise customers grew 6% on a year-over-year basis

 

  • Media revenue was $13.3 million, or 43% of total revenue in the quarter, compared to $10.2 million, or 38% of revenue last year, and $12.7 million, or 41% of total revenue last quarter. The company said that revenue from media customers grew 31% on a year-over-year basis

 

Gross margins for the quarter were 66%, flat on a percentage basis versus the same period a year ago and up from the 64%recordedduring the previous quarter.  On a non-GAAP basis (excluding stock-based compensation and amortization of acquired intangible assets) gross margins for the quarter were 68%.

Brightcove ended the quarter with 401 employees (a decrease of 10 employees from the preceding quarter), a total customer base of 5,995 (a decrease of 131 versus the preceding quarter), and cash and cash equivalents of $20.8m, down from $21.4m at the end of the first quarter of 2014.

 

Guidance Lowered for Full Year 2014

Brightcove now says it expects it to post a full year 2014 non-GAAP operating loss in the range of $6.5m to $7.5m on revenue in the range of $122m to $123.5m.  The Company had previously projected full year revenue in the range of $126m to $130m, and a non-GAAP operating loss in the range of $5m to $7m.

The company says its losses are likely to continue through the fourth quarter of next year, when it expects to achieve positive non-GAAP operating income.

“While we delivered solid financial results relative to our guidance, we also faced headwinds that have negatively impacted our outlook for the second half of 2014”, said Brightcove CEO David Mendels.

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Related Content:

Press Release: Brightcove Announces Financial Results for Second Quarter 2014

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Ateme raises €13.3 Million through Initial Public Offering

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Jul 11 2014

Video compression specialist ATEME announced that it has raised €13.3m through Initial Public Offering.

According to the company, the offering was well received by institutional and individual investors and was oversubscribed at a rate of nearly 2.5 times the number of shares offered.

The IPO pricing translates to a market capitalization of €44.7m.

“We are very pleased with the success of our IPO and we wish to warmly thank and welcome the investors to the ATEME family,” said ATEME CEO Michel Artières. “This validates our commercial achievements in encoding the world’s most valuable video content and enhances our financial capabilities to meet the continuing high demand for our video encoding technologies. With the funds raised, we will now be able to further accelerate our research and deployment, increase our market share and consolidate our technological leadership.”

ATEME had revenue of €29.7m in 2013, up 13% versus the full year 2012. The company posted a net loss of €1m in 2013, versus a net profit of €300,000 in 2012.

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Related Content:

Press Release: ATEME Announces Successful Initial Public Offering

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© Devoncroft Partners 2009 – 2013. All Rights Reserved.

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Dalet Revenue Grows 3 Percent in Q1 2014

Broadcast technology vendor financials, Broadcast Vendor M&A, Quarterly Results | Posted by Joe Zaller
May 06 2014

MAM and newsroom specialist Dalet reported that its consolidated revenue for the first quarter of 2014 was €7.6m, up 3% versus the same period a year ago, and down 25.5% versus the previous quarter.

On a geographic basis, Europe represented 55% of revenues in the quarter, the Americas represented 26%, Asia-Pacific was 14% and the Middle-East Africa region accounted for 5% of revenue.

Europe accounted for 48% of revenue, while MEA and Asia-Pacific accounted for 8% and 4% respectively.

Gross margins for the first quarter of 2014 were 79%, down from 85.1% last year. The company attributed the lower gross margins to a less favorable sales mix during the quarter.

The company did not disclose any other financial metrics, including profitability.

These results figures do not include any financials related to AmberFin, which Dalet acquired at the beginning of April 2014. Dalet says that it will begin consolidating AmberFin revenue into its accounts starting in Q2 2014.

AmberFin revenues for fiscal year ended 31/3/2013 were £4.6 million, with an operating loss of £1.1 million.

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Related Content:

Press Release: Dalet Announces Revenues for First Quarter 2014

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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