Archive for the ‘Quarterly Results’ Category

Autodesk FY 2015 Media & Entertainment Revenue Declines 13.9 Percent

Analysis, Annual Results, Broadcast technology vendor financials, Quarterly Results, SEC Filings | Posted by Joe Zaller
Feb 27 2015


Autodesk reported that its Q4 FY 2015 revenue from its Media and Entertainment (M&E) business segment was $43m, an increase of 5% compared to the same period last year, and flat with the previous quarter.

M&E gross margins for the fourth quarter were 79.1% ($34m), down from 81% during the same period a year ago, and up from 74.4% last quarter


Full Year M&E Revenue Declines 13.9 Percent

Media & Entertainment revenue for the full FY 2015 was $167m, down 13.9% versus the full FY 2013.

M&E gross margins for the full year 2015 were 76%, down from 81% in both 2013 and 2012.


Decline in M&E Revenue Continues

As shown below, the latest year-on-year decline in M&E revenue continues the trend that began more than five years ago.

Autodesk M&E Revenue 2008-15


Between fiscal 2008 and fiscal 2015, the company’s M&E business has a CAGR of -6%.  During this same time, M&E sales as a percentage of total Autodesk revenue has declined from 12% to 6%.

This is perhaps not surprising, given that company has been talking for some time about the anticipated decline in M&E revenue.  Last year, Autodesk CEO Carl Bass said the company expects its M&E revenue to decline over time as Autodesk incorporates greater functionality into its design suites.


Autodesk M&E: A Tale of Two Product Lines

Another reason for the ongoing decline is likely the changing mix of products sold by Autodesk into the M&E sector, including the sale of hardware versus software.

Autodesk breaks out products sold media and entertainment customers into two separate categories:

  • Animation (including design visualization): includes products, such as Autodesk Maya, Autodesk 3ds Max, and the Autodesk Entertainment Creation Suites. These products provide tools for digital sculpting, modeling, animation, effects, rendering and compositing, for design visualization, visual effects and games production.


  • Creative Finishing: include Autodesk Flame, Autodesk Smoke, Autodesk Lustre, and Autodesk Flare. These products provide editing, finishing and visual effects design and color grading.


In a filing with securities regulators last year, the company said that for the year ended January 31, 2014, revenue from Creative Finishing products declined by 17% due to “a general decrease in M&E industry end-market demand.”  In the same filing, the company said that Animation products had declined 7% during the fiscal year ended January 31, 2014.

On last night’s Q4 and full year fiscal 2015 earnings call, the company did not discuss its M&E product in either the prepared remarks or the Q&A session with equity analysts.

Indeed, the company has not discussed M&E on an earnings call since August 2014, when an analyst from JP Morgan asked Autodesk CEO Carl Bass: “How should we think about where the media and entertainment revenue line goes from here, is it something that actually could start to fade away?”

Bass replied: “No. I think, as we always try to distinguish, media and entertainment they are two different parts of the business. There is the creative finishing. Creative finishing has been diminishing, some of it is just nature of the market and some of it has to do with the hardware component in there which we no longer sell. And then there’s the other part which is the software part of the business. The software part of the business is good and healthy and we like all the dynamics in that part of the business. What we see in the other part less happy with it. That’s been going on for the last half dozen years in the creative finishing part.”



Related Content:

Press Release: Autodesk Reports Strong Fourth Quarter Results

Previous Year: Autodesk Media & Entertainment Revenue Down 16% in Q4 FY 2013, Down 10% for Full Fiscal Year

2012: Autodesk Media & Entertainment Revenue Rises Nine Percent in Fiscal 2012



© Devoncroft Partners 2009 – 2015. All Rights Reserved.




Vitec Group Broadcast Revenue Up 6.3 Percent in 2014; Changes Reporting Structure to Focus on Core Businesses

Broadcast technology vendor financials, Broadcast Vendor M&A, Quarterly Results | Posted by Joe Zaller
Feb 26 2015

The Vitec Group, which owns more than a dozen brands in the broadcast industry as well as technical services company Bexel, announced that its total for the full year 2014 was £309.6m, a decline of 1.8% versus 2013.

Operating profit was £38.8m, a decline of 1.8% versus last year.  On a constant currency basis, however revenue increased 3.3% and operating profit increased 7.4%.


Changes to Financial Reporting Structure Reflects Focus on Core Businesses

Vitec has about a dozen brands that serve various parts of the broadcast industry, including Anton/Bauer, Autocue, Autoscript, Bexel, Camera Corps, The Camera Store, Litepanels, OConnor, Petrol Bags, Sachtler, Teradek, SmallHD, Vinten and Vinten Radamec.

During 2014, Vitec divested its IMT wireless communications and microwave business, which included the IMT, Nucomm, and RF Central brands.

Historically, Vitec reported its broadcast-centric activities through its Videocom and Services divisions, but following the sale of IMT, the company has changed its financial reporting structure, starting with the release of its full year 2014 results. Vitec now reports its broadcast revenue through its newly named “Broadcast Division,” which it further breaks out as “Broadcast Equipment” and “Broadcast Services.”

According to the company this new reporting structure more appropriately describes its core operating businesses. “Following our exit from the loss-making IMT business we are focused on our core Broadcast and Photographic markets supplemented with selective value-adding acquisitions,” said Vitec CEO Stephen Bird.


Vitec Broadcast Division

As shown in the chart below, Vitec’s Broadcast Division had revenue of £171.1m in 2014, an increase of 6.3% versus 2013 (up 11.9% on constant currency basis).

Vitec Broadcast Division Revenue FY 2014



2014 Broadcast Division Operating profit for 2014 was £21.1m, an increase of 9.3% versus 2013’s results (16.6% on constant currency basis).  Operating profit for 2014 would have been negatively impacted by £1.8m had IMT’s results been included.

“Our Broadcast Division performed well in a variable market including a strong performance from Teradek, acquired in the second half of 2013,” said Bird. “We also benefited in 2014 from contracts to support the Sochi Winter Olympics and the FIFA World Cup. Our premium product and service offering was further strengthened through the acquisitions of Autocue, the specialty camera assets of SIS, and more recently SmallHD.”



Broadcast Equipment

The Broadcast Equipment business (excluding IMT) had 2014 revenues of £131.9m, an increase of 1.6% (7.0% on constant currency) versus 2013.

Vitec Broadcast Wquipment and Broadcast Services Revenue FY 2014


Vitec made three acquisitions during 2014, which are now reported in the Broadcast Equipment business:

  • The specialty camera assets of SIS Outside Broadcasts Limited (integrated into Vitec’s Camera Corps business)


  • Autocue, a well-known provider of teleprompters (now combined with Vitec’s Autoscript business)


  • SmallHD, a provider of high definition on-camera field monitors


The combination of currency fluctuations, and the inorganic contributions from these acquisitions accounted for all the growth in the Broadcast Equipment business.  On an organic constant currency basis, Broadcast Equipment revenue in 2014 was declined by 2.2% versus the previous year.

Broadcast Equipment operating profit was £18.8m in 2014, an increase of 5.0% (12.3% on a constant currency basis) over 2013.

Operating margin for Broadcast Equipment was 14.3% a slight improvement from the 2013 margin of 13.8%.

The company said that a lower level of investment by studios in larger camera supports had impacted its business, but that this was offset by smaller camera support products performing in line with expectations.

The Anton-Bauer battery business had lower revenue, but is expected to benefit from new ranges of products launched in 2014.

Although Vitec did not specifically break out the performance of Teradek, it did disclose that “contingent consideration of £4.2 million ($7.0 million) was accrued during the year to be paid to the previous owners of Teradek in 2015 in relation to the business’s performance in 2014 and is subject to final agreement. The business has delivered strong growth in the year and has performed ahead of our pre-acquisition expectations.”

Vitec offered Broadcast Division results excluding the performance of the IMT business.  IMT had recorded an operating loss of £1.3m in 2014 on revenue of £7.9 million.  IMT had breakeven results in 2013 on revenue of £14.0m.


Broadcast Services

The Broadcast Services generated revenue of £39.2m in 2014, an increase of 26.0% (32.9% on a constant currency basis) versus 2013.  2014 operating profit for Broadcast Services was £2.4m, equating to an operating margin of 6.1%.  This compares favorably to the operating profit of £1.5m in 2013 (4.8% operating margin).

Management attributed the strong performance of the Broadcast Services segment to major events in 2014 including the Sochi Winter Olympics and the FIFA World Cup, along with a rise in the underlying rentals business for other major events. The company also cited participation in a number of improvements in the infrastructure of NFL stadiums including player positioning systems.

It is interesting to review the capital expenditure requirements of the Broadcast Services business.

Broadcast Services spent £12.7m on rental assets in 2014.  This constitutes the majority Vitec’s capital expenditures as a company, which totaled £17.5 million excluding capitalization of software development costs.  Broadcast Services capital expenditures are partially financed by proceeds from the sale of certain rental assets.  These sales amounted to £5m in 2014.  Thus, total net capital expenditures were £6.7m for Broadcast Services.  This £6.7m cash outflow is in the context of a £3.8m operating cash inflow generated by the segment.

There is additional strategic rationale in Broadcast Services, which was noted in the Company’s release. Management stated the Broadcast Services business “enables Vitec to closely monitor changes in technology and to showcase our products.”




Related Content:

Press Release: The Vitec Group plc, 2014 Full Year Results

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

Broadcast Vendor M&A: Vitec Group Buys SmallHD for up to $30 Million in Cash

Vitec Group Announces Intention to Divest IMT Wireless Communications and Microwave Business

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



© Devoncroft Partners 2009 – 2015. All Rights Reserved.



Vizrt Posts 16% Revenue Growth in 2014, Provides Update on Pending $374 Million “Going Private” Deal

Broadcast technology vendor financials, Broadcast Vendor M&A, Quarterly Results | Posted by Joe Zaller
Feb 26 2015

Broadcast graphics MAM specialist Vizrt reported strong results for the fourth quarter and full year 2014.

The company also provided an update on the pending $374 million all-cash deal with Nordic Capital to take the company private.

For the fourth quarter of 2014 revenue was $36.2 million, an increase of 9% versus the fourth quarter in 2013, and an increase of 2.8% versus the preceding quarter, Q3 2014.

Gross margins for Q4 2014 were 71%, which compares favorably to the 69% margins recorded during Q4 2013 and is consistent with the 71% gross margins from the preceding quarter.

Operating expenses for the quarter were $17.9 million.  This represents a 9% increase when compared to the fourth quarter of 2013 and is flat versus the preceding quarter.

  • R&D expenses in the quarter were $5.5m (15.1% of revenue), down 1% versus the same period ago, and down 4% versus the previous quarter


  • Sales and marketing expenses in the quarter were $8.5m (23.6% of revenue), up 7% against the year earlier period and down 5% versus the Q3 2014


  • General and administrative expenses in the quarter were $3.8m (10.7% of revenue), up 31% versus the same period a year ago, and up 18% versus the preceding quarter


EBITDA was $7.8 million for the quarter, up 357% from $1.7 million during the fourth quarter of 2013, and up 9% from $7.2 million in the previous quarter.  The EBITDA margin for the quarter was 22% versus an EBITDA margin of 5% during the comparable quarter last year and 21% during the third quarter of 2014.

Net profit for the quarter was $4.5 million, compared to a net loss of $3.4 million last year, and down slightly versus last quarter’s net profit of $5.2 million.


Product line results for the Quarter:

  • Broadcast Graphics (BG) accounted for $30.8 million during the quarter (85% of total revenue versus 86.7% last quarter), an increase of 6% versus the same period ago, and an increase of 1% versus the previous quarter. The BG order backlog was $35.6 million, comparable to the size observed at the same time last year, and down 3.6% versus the previous quarter.


  • Media Asset Management (MAM) revenue in the quarter was $5.66 million (18% of total revenue versus 16% last quarter), up 5% versus the same period a year ago, and up 35% versus last quarter.   The MAM order backlog was $14.6 million, up 37% versus last year, and up 5% versus last quarter


Geographic Performance for the Quarter:

  • Revenue from EMEA was $17.1 million (47.2% of total revenue versus 47.5% last quarter), up 25% versus the same period last year and up 2% versus last quarter


  • Americas revenue was $8.9 million (24.8% of total revenue versus 27.6% last quarter), down 14% versus last year, and down 13% versus last quarter.


  • APAC revenue was $10.1 million (27.9% of total revenue versus 23.2% last quarter), up 9% versus last year, and up 3% versus last quarter


Results for full year 2014:

The full year results were headlined by growth of 31% in EBITDA and 80% in cash flow from operations.

Vizrt’s 2014 revenue was $141.5 million, an increase of 16% versus the $122.4 million recorded during 2013.

Net profit for the 2014 was $15.5 million ($0.23 per share), which is considerably higher than the $3.6 million ($0.06 per share) net profit from 2013.  The attributed its improved profitability to a change in product mix, consistent financial prudence, and the acquisition of Mosart MediaLabs

Gross margins for 2014 were 70%, which was a slight improvement from the 68% margins from 2013.    EBITDA was $27.7m (20% operating margin) for the full year 2014, a significant year-over-year increase from the $15.5 million (13% operating margin) recorded during 2013.

Operating expenses for 2014 were $71.1 million, a 14% increase over the operating expense level of 2013.

  • R&D expenses for the full year were $22.5 million (31.6% of revenue), an increase of 18% versus 2013


  • Sales and marketing expenses for 2014 were $35.2 million (49.6% of revenue), up 9% against the sales and marketing expense from 2013


  • General and administrative expenses were $13.3 million (18.8% of revenue), up 23% versus the 2013 calendar year


The geographic breakdown of 2014 sales consisted of 26% from Americas, 48% from EMEA, and 26% from APAC.

Vizrt ended 2014 with 584 employees compared to 542 at the end of Q4 2013. 24 employees were added following the Mosart acquisition in Q1 2014.



Update on Pending Acquisition by Nordic Capital

Company management provided an update on its previously announced acquisition by Nordic Capital.  Final closing of the transaction remains subject to certain conditions including the decision of Israeli tax authorities regarding a tax withholding ruling. Vizrt believes the process will come to a positive conclusion in the next several weeks.  The acquisition was first announced on November 10, 2014 and approved by a majority of shareholders on December 18, 2014.




Business Outlook:

Martin Burkhalter, Vizrt’s CEO, stated: “Our strong performance continued in Q4, despite the fact that we did not see the discretional spending towards the year-end that we normally have witnessed in previous years. Our strong performance is also reflected in our solid backlog going forward. I am particular pleased with the improvement of MAM results and the MAM backlog which increased by 37% compared to the same time last year.”



Related Content:

Press Release: Vizrt Reports Q4 and 2014 Results

Broadcast Vendor M&A: Vizrt to be Taken Private in $374 Million All-Cash Deal



© Devoncroft Partners 2009 – 2015. All Rights Reserved.



EVS Revenue Up 1.8 Percent in 2014, Appoints New CEO

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 25 2015

Production and playout video server specialist EVS reported Q4 2014 and full year 2014 results.
EVS_Logo (2013)

Revenues for the full year 2014 were €131.4 million, an increase of 1.8% over 2013 results.

Net profit for full year 2014 was €35.5 million (€2.63 per share), an increase 4.4% versus 2013.

Gross margins for the full year were 74.5%, which is a slight reduction versus the 75.5% achieved in 2013.  Management attributed the impact to gross margins to product and project mix, along with reclassification of certain expenses.

EBIT margin for the full year was 35.1%, which compares to 37.5% during the full year 2013.

R&D expenses for the full year 2014 were €25.2 million, or 19.1% of total revenue, an increase of 11% versus the R&D expense recorded in 2013.

Selling and administrative expenses for the full year 2014 were €25.1 million, or 19.1% of total revenue, representing a 2.9% increase over the full year 2013.

The company ended 2014 with 512 employees, down from 514 at the end of the third quarter of 2014, and up 5.3% from the 486 employees at the end of 2013.  Average headcount in 2014 represented a 6.8% increase over 2013.

The order book stood at €29.8 million as of February 15, 2015.  This represents a 38.3% decrease versus the order book on February 15, 2014 and an increase of 53.0% versus October 31, 2014.


Q4 2014 Results:

EVS had Q4 2014 revenue of €30.5 million, a decrease of 20.8% versus the same period last year, and a decrease of 15.3% versus the previous quarter.

Excluding the effect of exchange rate movements and event rentals, the Company’s Q4 2014 revenue decreased 22.4% versus the year earlier period.

Net profit for Q4 2014 amounted to €8.3 million (€0.61 per share), compared to €10.7 million (€0.80 per share) in the year earlier period and €11.3 million (€0.84 per share) in the preceding quarter.

Gross margins for the fourth quarter were 73%, equivalent to the gross margins recorded in Q4 2013, and a slight decrease from the 74.9% gross margins recorded in Q3 2014.

EBIT (Earnings before Interest and Tax) for the fourth quarter 2014 was €8.9 million, down 44.1% compared to the fourth quarter of 2013 and down 21.2% versus Q3 2014.

Operating margin for the quarter was 29.1%, substantially lower than 41.3% from the same period last year and the 39.8% operating margin achieved during the third quarter of 2014.

The drop in profitability for the quarter was attributable to a rise in operating expenses related to increases in headcount, one-time costs associated the departure of former CEO Joop Janssen, and various IS/IT investments.

Operating expense for the quarter grew by 11.7% versus the same period a year ago.

R&D expenses in the quarter were €6.6 million, or 21.6% of revenue, up 10% from the same period last year, and up 8.1% versus last quarter.

Selling and administrative expenses in the fourth quarter were €6.6 million, or 21.6% of revenue, up 13.8% versus the same period a year ago, and up 4.7% versus the previous quarter.


Revenue by Vertical Segment:

  • Revenues from sports-related applications during the fourth quarter of 2014 were €19.8 million, or 65.1% of total revenue, a decrease of 8.5% versus the fourth quarter of 2013. For the full year 2014, this segment contributed 65.1% of the total revenue, a decrease of 6.6% versus 2013.


  • Revenues from Entertainment, News & Media (ENM)during the quarter were €10.6 million, or 34.9% of total group sales, down 36.8% compared to year earlier period.  For the full year, this segment contributed 34.7% of total revenue, a decrease of 14% versus 2013.



Product and Service Revenue:

  • Systems revenue in the quarter was €28.2 million, or 92.4% of total revenue, down 22.3% versus Q4 2013. During the full year 2014, Systems revenue was €122.4m representing 92.5% of total revenue and was up slightly (0.9%) versus 2013.


  • Services revenue was €2.3 million for Q4 2014, or 7.6% of total revenue, up 5.4% versus the year ago period. Contribution to full year 2014 results was €8.9 million for this segment, representing 7.5% of total revenue, which was an increase of 15.3% when compared to 2013.



Geographic Revenue:

  • Revenue from EMEA (excluding events) in the fourth quarter of 2014 was €16.9 million, up 3.8% against last year’s quarter. Sales in EMEA accounted for 55.4% of group revenue during the fourth quarter.  This compares to 42.2% of total revenue during the fourth quarter of 2013.  For the entire year of 2014, EMEA revenue (excluding events) was €62.8 million or 47.7% of total revenue and was flat when compared to 2013.


  • Americas’ revenue for the fourth quarter of 2014 was €7.6 million, down 30.5% versus last year. Americas accounted for 25.0% of total revenue during the quarter, down from 28.5% of total revenue during the fourth quarter of 2013. For the entire year of 2014, Americas’ revenue was €32.9 million or 25.0% of total revenue and was up 12.3% when compared to Americas’ revenue during 2013.


  • Q4 2014 revenue from the APAC region was €5.9m, down 47.1% versus last year’s quarter. APAC accounted for 19.4% of total revenue in the fourth quarter, down from a contribution of 29.1% during Q4 2013. For the full year 2014, APAC’s revenue was €21.3 million or 16.2% of total revenue and was down 41.5% when compared to APAC’s revenue in 2013.



New CEO Appointed:

The Company also announced the appointment of Muriel De Lathouwer as the Managing Director & CEO of the Company.  Ms. De Lathouwer had been serving as interim president of the Executive Committee since the departure of Joop Janssen in October 2014.  She has been a member of the board of EVS since November 2013.




The Company’s full year 2014 results were in line with management’s guidance of low single digit growth over the performance in 2013.  Management cited a continued challenging market situation in the broadcast industry and specifically the live production server market segment.  This gives EVS limited visibility on expectations for 2015, though EVS did expanded on the discussion of the market by noting macro-economic headwinds and longer investment cycles.  In fact, the headline of the press release noted “2015 will be a transition year.”

The company provided additional commentary on the market environment in its Q4 2014 earnings presentation.  Management cited market data confirming its strong market share in outside broadcast vans and the opportunity for future upgrades of this existing installed base.  EVS also referenced a slide from Devoncroft’s pre-IBC 2014 analysis illustrating the ongoing “Trend Spend Disconnect” in the broadcast technology sector (included below as a reference).  The slide was supportive of management’s view that product investments by EVS are aligned with long-term trends in the sector.


.Devoncroft BBS Trend-Spend Disconnect

Related Content:

Press Release: EVS Reports 2014

Results:Press Release: EVS Broadcast Equipment Appoints Muriel De Lathouwer as Managing Director & CEO

EVS Q4 and FY 2014 Earnings Presentation  

Broadcast Vendor M&A: EVS Acquires All Shares of SVS GmbH and Dyvi Live SA

EVS Parts Ways with CEO Joop Janssen Over Differing Opinions on Strategic Implementation




© Devoncroft Partners 2009 – 2015. All Rights Reserved.



ATEME Posts 24 Percent Revenue Gain in 2014, Provides Upbeat Outlook for 2015

Annual Results, Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 16 2015

Video compression specialist ATEME announced that its revenue for 2014 was €25.4m, an increase of 24% versus the same period a year ago.

The company, which raised €13.3m through Initial Public Offering last year, said 2014 was its third consecutive year of revenue growth.

The company’s full performance appears to indicate that its growth accelerated during the second half of 2014, following on from revenue of €12m during the first six months of the year.

ATEME attributed its continued growth to both new business from existing customers such as the European Broadcasting Union (EBU), the acquisition of new customers including the BBC, leading Hollywood studios, tier-1 service providers and post-production studios; and the use of its technology at major events including the FIFA World Cup.

“We have a well-established, worldwide footprint and 2014 allowed us to solidify our base for growth,” said ATEME CEO Michel Artieres. “We are now the trusted technology partner in video compression for 200 customers from around the world. We will continue with investment strategies to provide full, flexible software solutions and to become a more agile solutions provider.”

The company said it believes it is “positioned to profit from soaring worldwide video consumption,” pointing to “the launch of new ultra high-definition/4K channels in Japan, Russia and the United Kingdom in 2015” as evidence of its future potential growth prospects.



Related Content:

Press Release: ATEME Posts Significant Growth in 2014

Ateme raises €13.3 Million through Initial Public Offering

HD World Cup Drives 22 Percent Growth for ATEME During First Six Months of 2014



© Devoncroft Partners 2009 – 2015. All Rights Reserved.



Dalet 2014 Revenue up 15 Percent, Driven by Strong Sales in MAM and Radio Solutions

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 10 2015

Dalet, a provider of broadcast newsroom computer systems, asset management, and radio automation solutions, reported that its revenue for 2013 was 2012 revenue was €42.1m, an increase of 15% versus 2013.

Fourth quarter revenue was €13.1m, up 6% versus the same period a year ago.

The above figures include approximately 9 months revenue from AmberFin, which was acquired by Dalet in April 2014.

Excluding AmberFin, the company’s revenue was up 7% versus the previous year.

Gross margin for the full year 2014 were 85%, down from 87% in 2013, and 86% in 2012


On a geographic basis:

  • Revenue in Europe was €21.1m in 2014, up by 19% versus the full year 2013.  Europe represented 50.1% of total revenue for the year, versus 48.5% in 2013.


  •  Revenues grew 7% in the Americas to €13.9m, or 33% of total revenue for the year, down from 35.4% in 2013


  • 2014 revenue from MEA was €2.8m, up 4% versus 2013. The MEA region represented 6.7% of revenue in 2014, down from 6.7% in 2013.


  • APAC revenue in 2014 was €4.2m, up 32% versus the previous year. APAC revenue was 10% of total revenue in 2014, up from 8.7% in 2013



On a product basis:

  • Asset management revenue was €18.5m, up 36.2% versus the previous year.  Asset management revenue represented 44% of total revenue in 2014, compared to 37.1% in 2013, and 44.9% in 2012


  • TV Newsroom systems was €12.2m, down 5.4% versus the previous year. TV newsroom systems represented 29% of total revenue in 2014, compared to 35.1% in 2013, and 25.2% in 2012


  • Sport solutions revenue was €2.9m, up 5.3% versus the previous year. Sports solutions revenue was 7% of total revenue in 2014, versus 10% in both 2013 and 2012


  • Radio solutions revenue was €7.6m, up 51.6% versus 2013. Radio solutions represented 18% of total revenue in 2014, versus 13.6% in 2013 and 14.6% in 2012


  • Integration revenue was €0.84m, down 39.9% versus the previous year.  Integration revenue represented 2% of total revenue in 2014, versus 3.8% in 2013 and 5.5% in 2012



Dalet CEO David Lasry said the company “experienced growth in 2014 despite the depressed economic conditions in Europe and the uncertainty in Eastern Europe. Even with negative market factors and the restructuring costs associated with the acquisition of AmberFin, the company’s operating profit for the year should remain positive. The Q4 order intake is strong, particularly in North and South America. Our ongoing investments in Asia Pacific are now gaining traction and we expect to see revenue growth in this region as well. These positive factors should further enhance our position in the Media Asset Management and broadcast space as we continue to expand our roster of premier media customers.”

The company said that its Dalet’s backlog of orders to be executed in 2015 stands currently at €30m, similar to its level at the same period last year.

Dalet finished the year with approximately €5.2m in cash (including 0.3 M€ of restricted cash), down from €7.7m on December 31, 2013. Short term and long term bank debt on December 31, 2014 totaled €5.4m, up from €2m on December 31, 2013, following the €3.4m loan taken to finance AmberFin’s acquisition.



Related Content:

Press Release: Dalet Revenues 2014 – €42.1 million, +15%

Previous Year: Dalet Revenue Grows 7 Percent in 2013 on Strong Sales of Newsroom Solutions

2012 Results: Dalet Reports 10 Percent Revenue Growth in 2012 Thanks to Strong MAM Sales

Broadcast Vendor M&A: Dalet Acquires AmberFin



© Devoncroft Partners 2009-2015. All Rights Reserved.



Quantum Media & Entertainment Revenue up 150 Percent through First Nine Months of FY 2015

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Jan 30 2015

Quantum_LogoQuantum announced  that revenue for the third quarter of its 2015 fiscal year, which ended December 31, 2014, was $142.1m, down 3% versus the same period last year, and up 5% versus the previous quarter.

GAAP net income for the quarter was $6.9m, or $0.03 per diluted share, versus a net loss of $2.5m million (or $0.01 per diluted share) last year, and net income of $1.2m last quarter.

The results were below the low-end of previously issued guidance ($145 million to $150 million).  The company attributed the sales decline to a 31% year-over-year drop in the revenue from its OEM tape automation partners.

Despite the drop in OEM revenue, Quantum’s scale-out storage business, which includes its StorNext product line, continued to experience significant growth.

During the earnings conference call with equity analysts, Quantum president and CEO Jon Gacek said that “since StorNext 5 became generally available early last year, StorNext and Lattus combined solutions have been adopted in some of the largest most demanding workflows around the world, and was one of the key contributors to our overall media and entertainment product revenue growing more than 150% year-over-year in Q3 and our mid-market media and entertainment product sales nearly tripling.”

Highlighting the success of the StorNext and Lattus product lines, Gacek said Quantum closed a $4m deal during the quarter for managing video in one of the world’s largest consumer electronics companies. Other significant M&E wins in the quarter include a sale of nearly $300,000 to a large media production company, and StorNext sales of more than $300,000 each to two of the top U.S. broadcast networks and a major international radio broadcaster.

On an overall basis, Quantum’s scale-out storage and related service revenue was $27m in the third quarter, up 55% from the year-earlier period and up 6% from the preceding quarter.  Year-todate, the company’s scale-out storage products have seen growth of nearly 60% versus the first three quarters of fiscal 2014 year.

In a November 2014 press release, Quantum said its scale-out storage revenue had increased by nearly 60% during the first six months of its fiscal 2015, and with an annualized run-rate of more than $100m. At that time, the company attributed this growth to demand for its StorNext 5 high-performance shared storage and Lattus extended online storage solutions, from M&E customers including BBC Sport, MLB Network and UFC, who have deployed a suite of scale-out storage systems managed by StorNext 5. Quantum SVP Geoff Stedman, called StorNext a ‘hidden gem’ in Quantum’s portfolio, and said “an increasingly broad range of customers is recognizing the unique benefits it provides, including in conjunction with Lattus.  To a great extent, this represents the triumph of specialized workflow-intelligent storage over general-purpose storage that simply can’t handle the complexities of effectively managing and protecting modern digital assets.”

The company ended the quarter with cash and cash equivalents of approximately $110m.



Quantum says it expects to post a GAAP net loss of $0.8m to $1.8m in its fiscal Q4, with revenue in the range of $130m to $135m, and GAAP and non-GAAP gross margin of approximately 43-45 percent.




Related Content:

Press Release: Quantum Corporation Reports Fiscal Third Quarter 2015 Results

Press Release: Quantum Scale-Out Storage Revenue Grows 50 Percent In First Half Of Fiscal Year



© Devoncroft Partners 2009 – 2015. All Rights Reserved.



Evertz Revenue Increases 2 Percent in Q2 FY 2015, Misses Analyst Estimates

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Dec 04 2014

Evertz announced revenue for its second fiscal quarter of 2015 (ending October 31, 2014) of C$82.9 million, an increase of 2% versus the same quarter in 2014 and down 15% from the previous quarter.

Net earnings for the quarter were C$14.3 million ($0.19 earnings per share), a decline of approximately 8% against the 2014 second quarter performance and down 27% versus the preceding quarter.  It is important to note the revenue result from the first quarter of 2015 was the highest in Evertz’s corporate history.

The results for the quarter were lower than the consensus estimate of equity analysts, who were expecting revenue of C$88m and earnings of C$0.23 per share.

The revenue miss was principally attributable to the softness in international markets.

Revenue in the US/Canada region was C$45.4m, up 19% versus the same period a year ago, and up 18.2% versus the previous quarter. US/Canada sales were 55% of total revenue during the quarter, up from 47% of revenue during the same period a year ago, and 57% of revenue last quarter.

International revenue was C$37.5m, representing a 13% decline versus the previous year’s result and a slight decrease of 11.8% when compared to the previous quarter. International sales were 45% of total revenue, down from 53% last year and 43% last quarter.

Gross margins in the quarter were 56.2%, down slightly from 57.4% last year and up from 57.0% last quarter. This result remained in Evertz’s previously communicated target gross margin range of 56% to 60%.

R&D expenses in the second quarter were C$15.1m, an increase of 3% versus the same period last year, and down 4.5% versus the previous quarter.  R&D expenses were approximately 18.2% of revenue in the quarter, higher on a percentage basis of revenue than last year (17.9%) and last quarter (13.6%) due to higher revenue.

Selling and administrative expenses for the quarter were C$15.1m, an increase of 10% versus last year, and an increase of 12.6% versus the previous quarter. Selling and administrative expenses represented approximately 18.2% of revenue in the quarter versus 16.8% of revenue during the same period last year, and 15.5% of revenue last quarter.

One interesting non-financial note from the quarter was the disclosure that Evertz has signed deals with more than thirty customers for its IP routing products, including its new 46 TB/s EXE router.



© Devoncroft Partners 2009 – 2014. All Rights Reserved.





Broadcast Vendor M&A: ChyronHego to be Taken Private by Vector Capital in $114 Million Deal

Analysis, Broadcast Vendor M&A, Quarterly Results, SEC Filings | Posted by Joe Zaller
Nov 17 2014

Broadcast graphics specialist ChyronHego announced that it has entered into a definitive agreement with Vector Capital, under which an affiliate of Vector will acquire all of the outstanding shares of ChyronHego common stock for $2.82 per share in cash.

San Francisco-based Vector Capital is a private equity firm with experience in the digital media sector. Recent portfolio investments include Corel and Technicolor. To fund the ChyronHego deal, Vector has secured committed financing consisting of a combination of equity and debt.

This is the second recent take-private transaction of a broadcast graphics provider. Earlier this month. Vizrt announced that it will be taken private by Nordic Capital in a $374m all-cash deal.

The $2.82 per share purchase price represents a premium of approximately 18% over the company’s average closing share price for the six months ending on November 14, 2014, and a 4% premium over the company’s closing share price on November 14, 2014, the last day of trading before the announcement.

Based on the total number of shares outstanding in ChyronHego, the deal equates to an equity value of approximately $114m. After backing out the cash on the company’s most recently published financial statements, this represents an enterprise value of approximately $108m.  On a valuation multiple basis, this is approximately 1.8x trailing 12 month’s revenue.

According to a shareholder FAQ, ChyronHego’s management team will stay the same after the transaction closes. Johan Apel will continue as CEO, and Soren Kjellin will continue as CTO.

The contractual details of the ChyronHego – Vector Capital agreement are complex and worth a longer discussion. We are preparing an analysis of the deal, and we will post this later this week.

A very brief synopsis of certain deal points follow:

  • Technically, the deal is a merger rather than an acquisition. ChyronHego is being merged into an entity controlled by Vector Capital, in order to create a new corporate entity, which will also be owned and controlled by Vector Capital.


  • All major shareholders on the ChyronHego management team have agreed to re-invest approximately 50% of their holdings in ChyronHego into the new corporate entity, for which they will receive approximately 31% of the equity in the new entity


  • Interestingly the merger agreement includes a “go shop” provision whereby ChyronHego has seven weeks to find a buyer who will offer a higher price than Vector Capital’s offer of $2.82 per share. Given Vizrt’s valuation in the Nordic Capital deal, and the fact that shares of ChyronHego have traded above $3.00 several times during the past year, it is possible that ChyronHego will be able to find a better offer. However, the “go shop” provision includes termination fees that will triggered under specified circumstances such as the acceptance of a superior offer. The company says it does not intend to disclose developments with respect to the solicitation process unless and until a decision has been made in respect to any potential superior proposal. 


The transaction is subject to customary closing conditions and most notably the approval by holders of two-thirds of ChyronHego’s outstanding shares and the approval by holders of a majority of shares held by current ChyronHego’s stockholders who will not become stockholders in the going-forward entity.  The Company expects the transaction to close in the first quarter of fiscal 2015.

The company said that its  board of directors and a special committee of the board composed entirely of independent directors have unanimously approved the deal, and have recommend that ChyronHego’s stockholders approve the transaction

“We are very happy to announce this partnership with Vector Capital, an established global technology oriented private equity firm that is focused on building long-term value. Our management is convinced that this is the right opportunity at the right time for ChyronHego’s customers, employees and stockholders,” said Apel.

In the third quarter of 2014, ChyronHego posted a net loss of $2.6m on revenue of $14m. During the first nine months of 2014, ChryronHego posted a net loss of $2.8m on revenue of $43.3m.



Related Content:

ChyronHego Investor FAQ and Introduction to Vector Capital

Agreement and Plan of Merger: ChyronHego Corporation, Vector CH Holdings (Cayman), L.P., And CH Merger Sub, Inc.

ChyronHego SEC Filing: Entry into a Material Definitive Agreement with Vector Capital

ChyronHego One Year Stock Price Chart

Broadcast Vendor M&A: Vizrt to be Taken Private in $374 Million All-Cash Deal



© Devoncroft Partners 2009 – 2014. All Rights Reserved.



Avid Releases First Financial Results in Nearly Two Years, Revenue Down 11.4 Percent in 2013

Broadcast technology vendor financials, Quarterly Results, SEC Filings | Posted by Joe Zaller
Sep 12 2014

Avid released financial results for the first time in nearly two years, following a protracted audit of it historic accounting treatment of software upgrades, dating back to 2009, which were made available to certain of its customers at no-charge.

The company has now completed the audit, and released financial results for both 2012 and 2013.  Avid has also released re-stated results for 2009-2011, which reflect the results of the audit.

For the full year 2013, Avid’s revenue was $563.4m, down 11.4% versus the previous year.

GAAP net income for the full year 2013 was $21.2m, down sharply from $92.9m in 2012. Non-GAAP income from continuing operations was $57.2 million or $1.46 per share. The company attributed the decline in revenue and net income to the larger portion of revenue from periods prior to 2011 being amortized in 2012 as compared to 2013 due changes in accounting rules.

The results for 2012 and 2013 are shown below, along with re-stated results from 2009-2011.


Avid restated earnings


“As a result of our restatement and in accordance with GAAP, revenue that had originally been recognized in earlier periods is now being recognized ratably over an extended timeframe,” said Avid EVP and CFO John Frederick. “The amount of revenue earned or to be earned over the entire period of recognition essentially remains unchanged from the amount we historically recognized. There was no change to the cash characteristics of the transactions being restated nor to the Company’s liquidity directly relating to these transactions. As a result of the restatement, the balance sheet reflects a significant increase in deferred revenue, which will be recognized in revenue over a number of years and will provide significant visibility into our future revenues. The revenue recognized from deferred revenue originating in periods prior to 2011 will continue in declining amounts through 2016, creating downward pressure on revenue growth until 2017.”

“We have worked diligently for well over a year on the restatement and are delighted to have completed the process,” said Louis Hernandez, Jr., president and CEO of Avid. “Throughout this period, we have put a premium on maintaining our focus on continued innovation for our customers and reasserting our commitment to being a strategic leader for the media industry with our Avid Everywhere vision. I’m encouraged by the progress we’ve made in executing against our three phase transformational strategy, and specifically with the growth in bookings over the past few quarters. Now that we have completed the restatement process, we are excited to continue our work on the transformation and feel the momentum building.”

Following the filing of Avid’s first quarter 2014 financial report, Avid plans to apply for relisting on the NASDAQ stock exchange, and hopes to be relisted on the NASDAQ stock exchange sometime after becoming current with its SEC reporting obligations. In the interim, Avid stock will continue to trade on OTC Markets — OTC Pink Tier under the trading symbol AVID.



Related Content:

Avid 2013 10-K Filing

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

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



© Devoncroft Partners 2009 – 2014. All Rights Reserved.





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