Posts Tagged ‘3D’

RealD Swings to a Loss in Q2 FY 2013

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Oct 29 2012

RealD said that its revenue for the second quarter of its 2013 fiscal year was $55m, down 38% versus the same period a year ago.

Licensing revenue in the quarter was $35m, down 33% versus last year. International markets generated 61% of license revenue, compared to 56% of license revenue in the second quarter of fiscal 2012.

Product and other revenue was $20m, down 44% versus last year. International markets generated 44% of product and other revenue, compared to 41% of product and other revenue in the second quarter of fiscal 2012.

The GAAP net for the quarter was $4.2m, or $0.08 per share, compared to GAAP net income of $18.9m, or $0.33 per diluted share, last year.

Although the company’s revenue in the quarter was higher than the consensus estimate of $47m, RealD missed on the bottom line expectation of a loss of $0.04 per share.

Adjusted EBITDA, a non-GAAP metric, was $13.8m for the quarter, down 69% versus the same period a year ago.

As of September 21, 2012, the company had deployed approximately 21,500 RealD-enabled screens, an increase of 15% compared to last year, and an increase of 800 screens, or 4%, compared to the previous quarter.

As of September 21, 2012, the company had approximately 12,300 domestic screens at approximately 2,700 domestic theater locations and approximately 9,200 international screens at approximately 2,600 international theater locations.

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Related Content:

Press Release: RealD Inc. Reports Financial Results for Second Quarter of Fiscal 2013

RealD Q2 2013 Earnings Call Transcript

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RealD Delivers Strong Results in Q2, But Loss of Samsung Deal Crushes Stock

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Nov 03 2011

3D technology provider RealD reported that its net revenue for its second quarter of its 2012 fiscal year was $88m, up 35% from the same period a year ago.

Licensing revenue in the quarter was $52m, up 119% from last year.  License revenue increased to 59% of gross revenue during the quarter from 46% of gross revenue in the second quarter of fiscal 2011. 56% of licensing revenue in the quarter came from international markets, compared to 52% last year.

Product revenue for the quarter was $36m, a decline of 13% versus last year.  Product revenue decreased to 41% of gross revenue during the quarter from 54% of gross revenue in the second quarter of fiscal 2011. The company attributed the lower product revenue to an increasing number of international consumers returning to the cinema with RealD eyewear purchased at a previous RealD showing.

GAAP net income for the quarter was $18.9m versus a GAAP net loss of $5.1m last year.  Gross margins for the quarter were 48%, up from 21% last year.

On a non-GAP basis, the company’s “adjusted EBITDA” in the quarter was $44.4m, an increase of 169% versus last year.

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Loss of Samsung Deal

As part of the earnings announcement, RealD also disclosed that consumer electronics giant Samsung has decided not to proceed with a previous plan to build TVs using the RealD’s technology.

The company said in a statement: “ RealD today is announcing revised expectations for its license agreement with Samsung Electronics LCD Business. In May 2011, RealD and Samsung announced that panels featuring RealD 3D display technology were expected to be made available to consumer electronics manufacturers by early 2012. RealD has recently learned that Samsung’s initiative to manufacture panels under the RealD license agreement is not being pursued at this time. As a result, RealD is now pursuing other potential partners for its 3D display technology among consumer electronics panel manufacturers.”  This news sent the company’s shares down sharply on the day following the release of this news.

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RealD Screen Deployments

The company said that at the end of the quarter it had deployed approximately 18,700 RealD-enabled screens, an increase of 101% versus the same period a year ago, and an increase of 7% versus the previous quarter.  Of these deployments 59% are in the United States, with the remaining 41% in international locations.

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Related Content:

Press Release: RealD Inc. Reports Financial Results for Second Quarter of Fiscal 2012

Previous Quarter: RealD Inc. Reports Financial Results for First Quarter of Fiscal 2012

Previous Year: RealD Q2 2010: Revenue up 69%, Deployments up 24%, Losses Remain

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Harris Reports Q1 2012 Results, Says Broadcast Revenue Increasing

Broadcast technology vendor financials | Posted by Joe Zaller
Oct 27 2011

Harris Corporation reported results for the first quarter of its 2012 fiscal year.

The company’s broadcast division is now part its Integrated Network Solutions (INS) unit, which was created when Harris strategically realigned its business segments in March of 2011, so the company no longer breaks out the specifics of its broadcast business.

Thus the information provided by the company about the broadcast business was scant compared to past earnings announcements.

Here’s what they did say:

Harris Corp. chairman and CEO Howard Lance said that the broadcast division it continues to see revenue growth in international regions: the South America, Middle East and Asia. In the company’s earnings presentation Harris said that broadcast was continuing to benefit from international demand.

Significant broadcast orders during the quarter, included $3 million from TV Azteca for the first live 3D transmissions throughout Mexico.

Harris also said it received a $3 million order from Svyaz Engineering, the company’s Russian manufacturing partner, with which it will begin local production of digital television transmitters. According to Harris, Russia is currently in the initial stages of its transition from analog to digital, and will this will ultimately include the replacement of 22,000 transmitters across the country. The Russian digital transition will take place over the next several years, and Harris believes it is well positioned to participate significantly in this revenue opportunity.

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Broadcast Business Impacted by Flooding in Thailand

On the conference call with equity analysts, Lance said the company “recently learned that one of our contract manufacturers located in Thailand has been impacted by the recent flooding. It’s really too soon for us to understand the extent of the impact and what impact it might have on the second quarter results in broadcast. We’re working feverishly to mitigate any impact. All of our finished goods have been moved out of Thailand, and our suppliers in the process of moving production and starting it at an alternate location.”

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Related Content:

Press Release: Harris Corporation Reports Fiscal 2012 First Quarter Results and Significantly Higher Orders

Harris Corporation Q1 FY 2012 Conference Call Transcript

Harris Corporation Q1 FY 2012 Earnings Call Presentation

Harris Corporation Strategically Realigns Business Segments; Broadcast Communications Rolled into New “Integrated Network Solutions” Unit

Previous Quarter: Harris Broadcast Division Posts Strong Growth in Q4 2011, Returns to Profitability for Quarter and Full Year

Previous Year: Harris Broadcast Division Reports $9m Loss on Rising Orders for First Quarter of 2011 Fiscal Year

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IBC 2011 Trends: Cloud, Channel-in-a-Box, 3D

broadcast industry technology trends, broadcast industry trends, broadcast technology market research | Posted by Joe Zaller
Sep 30 2011

Note: This article was originally published last week by TVNewsCheck

Technology vendors at IBC answered the broadcasters’ call for efficiency in a variety of ways, including “cloud” oriented product offerings, highly integrated IT-based systems for broadcast playout, and the introduction of new versions of existing systems that are smaller and less featured, but more affordable to broadcasters with limited budgets.

Also on display at the annual tech show, which wrapped up a six-day run in Amsterdam last week and drew more than 50,000 professionals, were technologies aimed at making 3D production more affordable and compatible with standard 2D operations.

Many vendors were touting the advantages of deploying some type of cloud-based or service-oriented architecture (SOA) applications such as capturing, producing, processing and distributing video and audio as digital files.

Cloud services are drawing attention because broadcasters are being challenged to support an ever-increasing number of distribution platforms. The breadth and rapidly changing nature of the multi-screen environment makes it difficult for even large broadcasters to deploy the appropriate hardware and software solutions in an affordable and timely manner. Thus, broadcasters are now increasingly willing to contemplate outsourcing some of these functions to cloud-based technologies and services.

Many vendors at IBC demonstrated technologies to address some of the fundamental concerns that broadcasters have about cloud-based architectures, notably content security, access to content, collaboration, bandwidth and workflow continuity.

Avid, Chyron, Grass Valley, Panasonic, Sony, Quantel and Vizrt showed their own methods for deploying “media-friendly” SOAs that provide a common interface and pre-authorized access to a wide variety of production tools from every staff member’s desktop.

In addition, the Advanced Media Workflow Association, the European Broadcasting Union and SMPTE came together to develop a standard for configuring an SOA that would allow each manufacturer’s equipment to talk to each other. The effort stems from the vendors’ realization that — due to R&D cost efficiencies — their next-generation products will be predominantly software based and operate best in this type of networked environment.

SOAs also help broadcasters produce and distribute content much more efficiently and allow staff to collaborate even though they may be in separate locations.

Many of these IT-centric concepts are not new ideas, but are now becoming attractive to the video production and broadcasting communities, looking to do more with the same resources. Industry connectivity to Internet protocol (IP) infrastructures has matured and newer consumer-industry file transfer technologies — like IP, HDMI and Apple/Intel’s Thunderbolt — offer benefits for broadcasters that were not apparent before.

Another significant hub of IT-oriented activity at the IBC was in the area of IT-based playout or, as it is more commonly known, channel in a box. These systems offer the promise of dramatically reducing the cost of broadcast playout by enabling users to migrate to off-the-shelf IT hardware running software that integrates, automates and replaces much of the traditional broadcast master control infrastructure.

Technology in this area had matured significantly over the past 6-12 months, and is now are under serious consideration by a number of large and small broadcasters around the world. Miranda Technologies, which became the de facto leader in this emerging field when it acquired the OmniBus Systems’ iTX platform last year, showed the latest advances in its IT-based playout offerings.

Other notable players in this space include traditional broadcast suppliers such as Snell and Evertz, as well as smaller specialized players like Playbox and VSN. Significantly, other large technology vendors are rumored to be readying competing systems that will be introduced in time for the annual NAB Show in April 2012.

In addition to the increasing drive for increased efficiencies, many IBC attendees were gearing up for the high-profile sporting and political events of 2012. In some cases, that means 3D. While the technology has yet to even be considered by local broadcasters in the U.S., a variety of live sports production companies across Europe are already producing events like soccer and rugby in 3D or are anticipating that they will by the time of the Olympics in London.

The games will be the first in 3D, with many events, including the opening and closing ceremonies, produced in the format. Panasonic will be supplying large quantities of 3D cameras and other gear.

Avatar director and 3D pioneer James Cameron put in appearances at several places at the IBC, promoting his new company, The Cameron/Pace Group, and urging industry professionals to pursue and help develop new tools for producing 2D and 3D content simultaneously.

According to Cameron, it’s the only way to stimulate the market to develop much-need original 3D content, and, in turn, spur 3D TV set sales. Previously, the cost of producing 3D has been prohibitive for everyone but a fortunate few who are being sponsored by TV set manufacturers.

“We’re on a relentless path to grow the 3D business,” said Cameron, at the Grass Valley IBC press conference. “We’ve been in the 3D game for 12 years now. We are so excited about what’s happening right now [with 3D] but it’s a little bit daunting staying ahead of the rapid rate of technology change, so we have to have powerful alliances with people that are major players in broadcast who will be able to fulfill this future and supply the kind of quality 3D that people enjoy.”

At the same press conference, Cameron’s partner (and equally influential 3D pioneer) Vince Pace said, “It’s so critical to the industry that we integrate the solutions and come up with a very clean and determined business plan that makes sense to the industry to increase the amount of 3D productions. So, this business of saying we have fewer cameras or we don’t tell the whole story is going to go away.”

IBC attendance was up slightly this year (4%, according to the IBC, to 50,462), again signaling that broadcasters are spending money — on hardware and T&E. Unlike last year, there were several representatives of all the major U.S. TV networks.

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RealD Q1 2011 Revenue Declines 8%, Sinking Stock

broadcast technology market research, Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Aug 01 2011

3D technology licensing leader RealD announced that its revenue for its first quarter  of fiscal 2012 ended June 24, 2011 was $59.6m, a decrease of 8% versus the same  period a year ago, and up slightly versus the previous  quarter.

Licensing revenue in the quarter was $35.7m, an increase of  39% from the first quarter of fiscal 2011, and up 8% versus the previous quarter. Licensing revenue represented 60% of total revenue in the quarter.  International markets generated 58% of net license  revenue in the first quarter of fiscal 2012 compared to 35% of net license revenue in the first quarter of fiscal 2011.

Product revenue for the quarter was $23.9m, down 39% from the same period a year ago, and down 6% versus the previous quarter. The company attributed the decline in product revenue to “an increasing number of international consumers returning to the cinema with RealD eyewear purchased at  a previous RealD 3D showing.”

GAAP net income in the quarter was $9.6m, an increase of 226% versus the same period a year ago.

Gross margin increased to 59% from 28% in the first quarter of fiscal 2011 and reflects the higher mix of net license revenue and improved product and other gross profit referenced above.

Investors were unimpressed with the results.  RealD’s shares have dropped 22% since the company released its Q1 2011 earnings, and are now trading below the company’s IPO price.

 

3D Screen Deployments:

As of June 24, 2011, the company has deployed approximately 17,500 RealD-enabled screens, an increase of 133% from approximately 7,500 screens at June 25, 2010, and an increase of 2,500 screens, or 17%, from approximately 15,000 screens at March 25, 2011.  Domestic screens (U.S. and Canada) were approximately 10,300 and international screens were approximately 7,200 at June 24, 2011.

 

Related Content:

Press Release: RealD Inc. Reports Financial Results for First Quarter of Fiscal 2012

Barron’s Article: Harsh Reality Hits RealD

Bloomberg: RealD Slides Below IPO Price After First-Quarter Revenue Misses Estimates

Press Release: RealD Inc. Reports Financial Results for Fourth Quarter and Fiscal Year 2011

Bloomberg: RealD Slumps Most Since IPO as Analysts Question Appeal of 3-D Movies

RealD President Bows Out, Cashes In

Press Release: RealD Co-Founder Joshua Greer to Transition into Advisory Role and Remain on Board of Directors

RealD SEC filing detailing separation agreement between RealD and Joshua Greer

 

 

Barco Revenue Jumps 33 Percent in 1H 2011, But Says Digital Cinema Growth Is Slowing

broadcast technology market research, Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Jul 20 2011

Barco said that its revenue for the first half of 2011 was 490.3 million euro, a 33.1% year-on-year increase. There was growth in all divisions except for the Defense & Aerospace division. The highest growth was realized by the Entertainment and the Control Rooms & Simulation divisions. The top line of the Healthcare division and the Ventures increased with high single digit figures compared to the same period the year before.

Sales to Europe, Middle East, Africa and Latin America (EMEALA) represented 43% of consolidated sales, while 34% of sales were realized in North America and 23% in Asia Pacific. Compared to 1H10 sales were up 30.4% in absolute numbers in the EMEALA region, while they grew respectively with 34.8% and 36.1% in North America and the APAC region.

Order intake in 1H11 was 560.4 million euro. Compared to the same period the year before this is an increase of 8.8%, carried by the  Entertainment and the Healthcare divisions.

In order intake the APAC region realized 29% of total, compared to 34% for North America and 37% for the EMEALA region. The latter region had a decline of 9.2% in orders, while orders in North America and in the APAC region increased with 12.4% and 38.9% respectively.

 

Outlook:

Commenting on the remainder of 2011, the company said: “Although Barco’s progress has recently been carried predominantly by the growth momentum in the Entertainment and Healthcare divisions, management believes that all other divisions are well on the way to realize their corporate objectives. Even though growth in digital cinema will begin to level off in coming quarters, Barco’s progress is sustainable.  Barring any unexpected macro-economic turmoil 2011 will be a good year for Barco.”

 

Related Content:

Press Release:  Barco announced results for the six month period ended 30 June, 2011

Barco 1H 2011 earnings conference call investor presentation

More Broadcast Vendor M&A: EVS Sells XDC CineStore Digital Cinema Technology to Barco

Information about Barco’s Q4 and full year 2010 results is here.

 

 

 

RealD Posts Profit in Q4, Analysts Question of Appeal of 3D Movies

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Jun 13 2011

RealD, which licenses 3D technologies, announced that its revenue for the fourth quarter of its fiscal year was $58.5m, an increase of 6% versus the same period a year ago. The company posted GAAP net income of $4.5m in the quarter, versus a GAAP loss of $20.9m during the same period a year ago.

For the full fiscal year, the company had revenue of $246.1m, an increase of 64% versus the previous year.  Net loss for the year was $12.3m, versus a loss of $51.2m the previous year.

Despite RealD’s increasing revenue and profitability, investors sold off the stock on fears that 3D may not have the market traction that had been anticipated previously.  According to a Bloomberg article, shares in RealD fell the most since its initial public offering after analysts questioned executives about the appeal of the 3D format.

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Related Content:

Press Release: RealD Inc. Reports Financial Results for Fourth Quarter and Fiscal Year 2011

Bloomberg Article: RealD Slumps Most Since IPO as Analysts Question Appeal of 3-D Movies

RealD President Bows Out, Cashes In

RealD SEC filing detailing separation agreement between RealD and Joshua Greer

RealD Files Prospectus for $200m Secondary Stock Offering. All Proceeds Destined for Current Shareholders Rather than the Company Itself

Wall Street Journal Article: RealD Insiders Capitalize on IPO

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RealD President Bows Out, Cashes In

Uncategorized | Posted by Joe Zaller
Jun 01 2011

RealD, a global licensor of 3D technologies announced that company co-founder Joshua Greer will no longer serve as President of the Company effective July 15, 2011.

According to a filing with the Securities and Exchange Commission, Greer, who made tens of millions of dollars through RealD’s IPO and subsequent share sales, has entered into a consulting agreement with RealD that will pay him $275,000 to act as a strategic and technology advisor to the company.  He will also remain on the company’s board of directors.

 

Greer will also receive the following separation benefits:

 

  • cash severance of $450,000 (Greer’s annual base salary according to RealD’s S1 filing)

 

  • reimbursement from the Company for insurance coverage under COBRA for 18 months

 

  • a pro-rated cash Performance Bonus for fiscal year 2012 (to be paid no later than June 15, 2012), in an amount equal to 30% of 80% of Mr. Greer’s salary, computed assuming that Mr. Greer had remained as President of the Company through the end of fiscal year 2012; and

 

  • acceleration of a time-based vesting stock option for 105,000 shares granted to Mr. Greer on July 15, 2010

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Related Content:

Press Release: RealD Co-Founder Joshua Greer to Transition into Advisory Role and Remain on Board of Directors

RealD SEC filing detailing separation agreement between RealD and Joshua Greer

RealD Files Prospectus for $200m Secondary Stock Offering. All Proceeds Destined for Current Shareholders Rather than the Company Itself

Wall Street Journal Article: RealD Insiders Capitalize on IPO

RealD S1 (filing with SEC)

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RealD Losses Widen to $16.6m as Q3 Revenue Jumps 91%

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 03 2011

RealD, a global licensor of 3D technologies, announced that its revenue for the third quarter of its fiscal year was $57.8m, an increase of 91% versus the same period a year ago, but down 11% from the previous quarter.

The company posted a net loss $16.6m during the quarter on a GAAP basis, compared to a GAAP net loss of $15.1m during the same period a year ago, and a GAAP net loss of $5.1m during the previous quarter.  However, the company said that on a non-GAAP basis, it achieved adjusted EBITDA of $16.9 million, an increase of 213% versus the same period a year ago, and up slightly from the adjusted EBITDA of $16.5m posted last quarter.

Along with the jump in revenue, RealD’s costs increased significantly during the quarter.  The company’s cost of revenue increased 63% to $51.6m, and its operating expenses more than doubled to $20.8m.

RealD continues to post impressive expansion numbers. During the quarter it deployed approximately 2,000 3D-enabled screens, bringing its total 3-D screen deployment to 11,300.  On a geographic basis, the company said it has deployed 6,900 domestic (United States and Canada) screens and 4,400 international screens. 

These updated screen deployment numbers represent an increase of 163% versus last year, and an increase of 22% versus the previous quarter.

Year to date, the company’s net revenue was $187.6 million, an increase of 99% versus the first nine months of the last fiscal year.   The company’s years to date operating expenses were $51.2m, an increase of 81% versus the first nine months of last year.

On a GAAP basis, RealD lost $16.8m during the first nine months of its fiscal year.  However the company said that on a non-GAAP basis (which excludes the impact of motion picture exhibitor option expense) it achieved net income of $17.3m, compared to a non-GAAP net loss $12.4m for the first nine months of its last fiscal year.  The company also said that its adjusted EBITDA (a non-GAAP measure) was $44.4m, compared to $11.5m for the first nine months of last year.

RealD said it ended the quarter with cash and cash equivalents of $35.5m.  During the quarter the company successfully completed a $200m secondary stock offering, but all proceeds went to company investors and insiders rather than the company itself. 

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You can read the full RealD Q3 earnings release here.

You can read information on RealD’s previous quarter (Q2) results here.

Information on the company’s $200m secondary stock offering is here.

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CES 2011 – Connected TV, Mobile DTV, 3D and Big Crowds

broadcast industry technology trends, broadcast industry trends, broadcast technology market research | Posted by Joe Zaller
Jan 13 2011

Last week I was shocked back to post-holiday reality by my annual winter pilgrimage to Las Vegas for the 2011 CES exhibition.  I spent a couple of days in the conference session and walking the (very crowded) show floor.

As in 2010, some of the key themes at CES were making money (or not) from online content, connected TV, 3D TV, and mobile TV broadcasting.

The conference session I attended focused on connected TV, online TV and the monetization of content via these channels.  On the monetization point, I lost count of the number of times I heard the word “experimentation” during these sessions – particularly from content owners.  In other words, although everyone agrees that multi-platform content delivery is a very important trend, many players have still not figured out the business model.

Connected TV however is another story – it’s an area where the business model is a bit more straightforward.

A long time ago, I used to work in the interactive TV space, and this is what connected TV reminds me of… it’s an interactive EPG that just happens to point at web content and your media library in addition to the channels that you receive from your provider.  However there is one critical difference with today’s connected TV platforms versus the interactive TV technology of a decade ago – the ability to deliver target advertising to specific viewers. 

Although I look at connected TV as a fancy EPG that’s connected to a sophisticated ad serving platform, I think it’s where I think we’ll be seeing real innovation (and revenue) over the next few years.  To me the promise of connected TV is stronger than that of 3D, another hot topic at CES.

After all that 3D hype at the beginning of 2010, the hysteria over 3D seems to have cooled down a bit in 2011.  3D set sales are slow, there’s not much content out there, and on the professional side broadcast vendors have significantly toned down their statements about 3D, as evidenced by the IBC press conferences of companies such as Grass Valley and Harris.

Nevertheless, there was still a great deal of 3D at CES this year – particularly at Panasonic, which as you can see in the photo below dedicated a considerable portion of its CES booth to 3D technologies.

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I am still a 3D skeptic, particularly in terms of its real impact on the professional market. Yes, there is some equipment being sold, and yes there are a few dedicated 3D channels out there… but in terms of the overall market 3D today is still a drop in the bucket.  Only time will tell if 3D ever really becomes mainstream.  Nevertheless the 3D hype goes on, albeit in a somewhat toned-down form.

Another technology platform on which many have pinned their hopes is mobile TV broadcasting.  US OTA broadcasters are fighting a battle on many fronts – from the government, to Gary Shapiro at the CEA, to the need to generate new revenue streams, to the need to remain relevant in a multi-channel, always-on media environment — and they see mobile DTV broadcasting as a key way to help them succeed on all fronts. 

 

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At CES, there was a small group of booths that were showing off technologies for ATSC mobile DTV broadcasting.  US broadcasters are serious about mobile TV, and they were there in force along with some well established (Harris, LG) and new technology vendors.  Over the course of the show, I ran into broadcasters from most of the networks and major station groups.  There were also a large number of broadcast vendors in attendance with one (Evertz) even having a booth at the show.

From the conversations I had at CES, I expect mobile DTV broadcasting to be a major theme of the NAB show in April.  Given the political climate this could be the make or break year for mobile DTV broadcasting in the US.  It’s going to be interesting to watch.

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