Posts Tagged ‘Arris’

2016 Big Broadcast Survey (BBS) Reports Now Available

broadcast technology market research, Broadcast Vendor Brand Research, market research | Posted by Josh Stinehour
Jul 21 2016

The 2016 Big Broadcast Survey (BBS) Reports are now available.

We have been publishing the BBS Reports since 2009.  Each new edition is created through several months of research, including interviews with technology end-users, global surveys of technology decision makers, analysis of the end-user responses, and visualization of the data collected.  Now in its eighth year of publication, the BBS remains the most comprehensive annual study of technology end-users in the global broadcast and media technology industry.  Nearly 10,000 technology professionals in 100+ countries participate in the BBS each year, making it the largest market study of the media technology industry.

Based on feedback from technology vendors, media companies, and investors, we have updated the vendors, product categories, and market trends profiled in the 2016 BBS to better align with recent market developments.

Select updates include the global tracking of IP Standard Adoption, a product level review of the 4K upgrade cycle, and planned usage of programmatic advertising exchanges.

The continual updates over the past eight years have helped the BBS reports remain a critical reference for industry executives to improve strategic decision-making, customer engagement, marketing strategy, product planning, and sales execution.  In addition to technology vendor and service provider strategic planning, BBS reports are also used frequently for M&A and investment activities by both buyers and sellers.

Three types of 2016 BBS reports are available:

  • 2016 BBS Global Brand Reports: provides deep insight into how each more than 100 broadcast technology suppliers (see full list below) are perceived by market participants, along with comprehensive benchmarking of broadcast technology vendors on a wide variety of metrics
  • 2016 BBS Product Reports: provide detailed information from buyers, specifiers, and users of broadcast technology products in 32 separate categories (see full list below)
  • 2016 BBS Global Market Report: provides detailed information about industry trends, major projects being planned, products being evaluated for purchase, current and future plant infrastructure, broadcast technology budgets, and planned deployment of new technologies including 4K, HEVC compression, and IP-based technology infrastructure

 

For additional information on the 2016 BBS report, please call or email me.

As is Devoncroft’s custom, we will publish highlights from this year’s BBS reports on the Devoncroft website.  These articles are posted on a semi-regular basis, so please check back often.

To receive posts when published, please enter register with your email in the box in the upper right-hand corner of the page.

The below table of logos (in alphabetical order) lists the technology vendor brands covered in the 2016 BBS.

2016-BBS-Logos

 

Technology Product Categories & Vendor Brands Covered in the 2016 BBS, by Application Area

 

Acquisition & Production:

ENG Cameras

Canon, Hitachi, Ikegami, JVC, Panasonic, Sony

Large Format Single Sensor Cameras

ARRI, Blackmagic Design, Canon, Red, Sony

Production Switchers

Blackmagic Design, For-A, Grass Valley, NewTek, Panasonic, Ross Video, SAM, Sony

Studio / System Cameras

Grass Valley, Hitachi, Ikegami, JVC, Panasonic, Sony

 

 

Post Production: 

Graphics & Branding

Adobe, Autodesk, Avid/Orad, ChyronHego, Evertz, Grass Valley, Imagine Communications, Ross Video, Vizrt

Video Editing

Adobe, Apple, Avid, Blackmagic Design, EVS, Grass Valley, Imagine Communications, Sony

 

 

Content Communications and Infrastructure:

Bonded Cellular

Dejero, LiveU, Teradek, TVU

Routing Switchers

Blackmagic Design, Evertz, Grass Valley, Imagine Communications, Ross Video, SAM, Utah Scientific

Signal Processing / Interfacing / Modular

Aja Video, Axon, Blackmagic Design, Evertz, For-A, Grass Valley, Imagine Communication, Ross Video, SAM

Video Transport

Aspera, Cisco, Ericsson, Evertz, Harmonic, Imagine Communications, Lawo, Media Links, Net Insight, Nevion, Riedel, Signiant

 

 

Storage:

High Performance Shared Storage:

Avid, Harmonic, Hitachi, HPE, Isilon Systems/EMC, NetApp, Quantum

Playout / Transmission Servers

Avid, EVS, Grass Valley, Harmonic, Imagine Communications, Ross Video

Production Servers

EVS, Grass Valley, Harmonic, Rohde & Schwarz, SAM

 

 

Audio:

Audio Consoles

Avid, Calrec, Lawo, Salzbrenner Stagetec, Solid State Logic (SSL), Soundcraft, Studer, Wheatstone, Yamaha

Audio Processing & Monitoring

Adobe, Avid, Dolby, Linear Acoustic, RTW, TSL, Wohler

Intercom / Talkback

Clear-Com, Riedel, RTS Intercom Systems, Trilogy

Microphones

AKG, Audio-Technica, beyerdynamic, Electro Voice, Marshall Electronics, Neumann, Schoeps, Sennheiser, Shure, Sony

Monitors (speakers)

Adam, Avid, Focal, Genelec, JBL, KRK Systems, Mackie, Neumann, PMC,

 

 

System Automation and Control:

Broadcast Business Management Systems

arvato/S4M, Imagine Communications, MediageniX, MSA Focus, SintecMedia, Wide Orbit

Archive & Archive Management

Masstech, Oracle/Front Porch Digital, Quantum, SGL, XenData

Media Asset Management

arvato/S4M, Avid, Dalet, EVS, Imagine Communications, Prime Focus Technologies, Vizrt, VSN

Playout Automation

Grass Valley, Imagine Communications, Pebble Beach, Playbox, Snell

Workflow Orchestration / BPM

Aspera, Avid, Imagine Communications, IBM, Sony, Telestream

 

 

Playout and Delivery:

Encoding / Transcoding

Arris, ateme, Cisco, Dalet/AmberFin, Elemental Technologies, Ericsson, Harmonic, Imagine Communications, Telestream

Integrated Playout (Channel in a Box)

Evertz, Grass Valley, Harmonic, Imagine Communications, Pebble Beach, Playbox, SAM

On-line / Streaming Video Delivery Platforms

Brightcove, Kaltura, Neulion, Ooyala, Piksel

Transmitters

GatesAir, Hitachi, NEC, Plisch, Rohde & Schwarz, Screen Service, Toshiba

 

 

Test, Quality Control and Monitoring:

Multiviewers

Avitech, Axon, Evertz, For-A, Grass Valley, Imagine Communications

Test & Measurement

Imagine Communications, IneoQuest, Leader, Phabrix, Rohde & Schwarz, Tektronix

 

 

© Devoncroft Partners 2009 – 2016. All Rights Reserved.

 

 

2015 Big Broadcast Survey (BBS) Reports Now Available

broadcast technology market research | Posted by Joe Zaller
Aug 04 2015

The 2015 Big Broadcast Survey (BBS) Reports have now been published and are available from Devoncroft Partners.

We have been publishing the BBS Reports since 2009.  Each new edition is created through several months of research, including interviews with technology end-users, global surveys of technology decision makers, analysis of the end-user responses, and visualization of the data collected.  Now in its seventh year of publication, the BBS remains the most comprehensive annual study of technology end-users in the global broadcast and media technology industry.  Nearly 10,000 technology professionals in 100+ countries participated in the 2015 BBS, making it once again the largest market study of the media technology industry.

Based on feedback from technology vendors, media companies, and investors, we have updated the vendors, product categories, and market trends profiled in the 2015 BBS to better align with recent market developments.

These updates help ensure the BBS reports remains a critical reference for industry executives to improve strategic decision-making, customer engagement, marketing strategy, product planning, and sales execution.  In addition to technology vendor and service provider strategic planning, BBS reports are also used frequently for M&A and investment activities by both buyers and sellers.

Three types of 2015 BBS reports are available:

  • 2015 BBS Global Brand Reports: provides deep insight into how each more than 100 broadcast technology suppliers (see full list below) are perceived by market participants, along with comprehensive benchmarking of broadcast technology vendors on a wide variety of metrics

 

  • 2015 BBS Product Reports: provide detailed information from buyers, specifiers, and users of broadcast technology products in 30 separate categories (see full list below)

 

  • 2015 BBS Global Market Report: provides detailed information about industry trends, major projects being planned, products being evaluated for purchase, current and future plant infrastructure, broadcast technology budgets, and planned deployment of new technologies including 4K, HEVC compression, and IP-based technology infrastructure

 

For additional information on the 2015 BBS report, please email us.

As is Devoncroft’s custom, we will publish selected highlights from this year’s BBS reports on the Devoncroft website.  These articles are posted on a semi-regular basis, so please check back often.

To receive posts when published, please enter register with your email in the box in the upper right-hand corner of the page.

The tables below list the  technology vendor brands and product categories covered in the 2015 BBS.

 

All Brands Covered in 2015 Big Broadcast Survey (BBS)


Product Categories Covered in the 2015 Big Broadcast Survey

Technology Products & Vendor Brands Covered in the 2015 BBS, by Application Area

 

Acquisition & Production:

Camera Lenses

Angenieux, Canon, Fujinon

 

ENG Cameras

Canon, Hitachi, Ikegami, JVC, Panasonic, Sony

 

Large Format Single Sensor Cameras

ARRI, Blackmagic Design, Canon, Red Digital Cinema, Sony

 

Production Switchers

Blackmagic Design, Broadcast Pix, For-A, Grass Valley, NewTek, Panasonic, Ross Video, Snell, Sony

 

Studio/System Cameras

Grass Valley, Hitachi, Ikegami, JVC, Panasonic, Sony

 

 

Post Production:

 

Graphics & Branding

Adobe, Autodesk, Avid, ChyronHego, Evertz, Grass Valley, Imagine Communications, Orad, Pixel Power, Ross Video, Vizrt

 

Transcoding / Streaming

Dalet/AmberFin, Elemental Technologies, Envivio, Harmonic, Imagine Communications, Telestream

 

Video Editing

Adobe, Apple, Avid, EVS, Grass Valley, Imagine Communications, Sony

 

Infrastructure:

Bonded Cellular

Dejero, LiveU, Teradek, TVU, Vislink

 

Routing Switchers

Blackmagic Design, Evertz, Grass Valley, Imagine Communications, Nevion, Pesa, Ross Video, Snell, Utah Scientific

 

Signal Processing / Interfacing / Modular

Aja Video, Axon, Blackmagic Design, Evertz, For-A, Grass Valley, Imagine Communication, Ross Video, Snell

 

Video Transport

Arris, Aspera, Cisco, Ericsson, Evertz, Harmonic, Imagine Communications, Media Links, Net Insight, Nevion, Riedel, Signiant

 

 

Audio:

Audio Consoles

Avid, Calrec, Lawo, Salzbrenner Stagetec, Solid State Logic (SSL), Soundcraft, Studer, Wheatstone, Yamaha

 

Audio Processing & Monitoring

Adobe, Avid, Dolby, Linear Acoustic, RTW, TSL, Wohler

 

Intercom / Talkback

Clear-Com, Riedel, RTS Intercom Systems, Trilogy

 

Microphones

AKG, Audio-Technica, beyerdynamic, Electro Voice, Marshall Electronics, Neumann, Schoeps, Sennheiser, Shure, Sony

 

Monitors (speakers)

Adam, Avid, Focal, Genelec, JBL, KRK Systems, Mackie, Neumann, PMC,

 

 

Storage:

High Performance Shared Storage:

Avid, Harmonic, HP, IBM, Isilon Systems/EMC, NetApp, Quantum

 

Playout / Transmission Servers

Avid, EVS, Grass Valley, Harmonic, Imagine Communications, Ross Video

 

Production Servers

Avid, EVS, Grass Valley, Harmonic, Quantel

 

 

System Automation and Control:

Broadcast Business Management Systems

arvato/S4M, Imagine Communications, MediageniX, MSA Focus, SintecMedia/Pilat Media, VSN, Wide Orbit

 

Archive & Archive Management

ASG/Atempo, Masstech, Oracle/Front Porch Digital, Quantum, SGL, XenData

 

Playout Automation

Grass Valley, Imagine Communications, Pebble Beach, Playbox, Snell

 

Workflow / Asset Management

arvato/S4M, Avid, Dalet/Amberfin, EVS, Imagine Communications, Sony, Vizrt, VSN

 

 

Playout and Delivery:

Integrated Playout (Channel in a Box)

Evertz, Grass Valley, Harmonic, Imagine Communications, Pebble Beach, Playbox, Snell, Thomson Video Networks

 

On-line / Streaming Video Delivery Platforms

Brightcove, Kaltura, Ooyala, Piksel

 

Transmission Encoders

Arris, ATEME, Cisco, Elemental Technologies, Envivio, Ericsson, Harmonic, Imagine Communications, Thomson Video Networks

 

Transmitters

GatesAir, Hitachi, NEC, Plisch, Rohde & Schwarz, Screen Service, Toshiba

 

 

Test, Quality Control and Monitoring:

 

Multiviewers

Avitech, Axon, Evertz, For-A, Grass Valley, Imagine Communications

 

Test & Measurement

Imagine Communications, IneoQuest, Leader, Phabrix, Rohde & Schwarz, Tektronix

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© Devoncroft Partners 2009 – 2015. All Rights Reserved.

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Broadcast Vendor M&A: ARRIS Buys Pace for $2.1 Billion

Analysis, Broadcast technology vendor financials, Broadcast Vendor M&A, Quarterly Results, SEC Filings | Posted by Joe Zaller
Apr 22 2015

In the latest round of media technology consolidation ARRIS announced  it will acquire Pace for $2.1 billion in stock and cash.

ARRIS is financing the deal with just $55 million in cash.  The remaining $2.05 billion comes from a new incremental $800m credit facility underwritten by Bank of America Merrill Lynch, and $1.455 billion worth of newly issued ARRIS shares.

The transaction will result in the formation of “New ARRIS,” which is expected to be listed on the NASDAQ stock exchange under the ticker ARRIS.

Full details of the transaction are available in the Agreement and Plan of Merger file with the SEC.

In a presentation to investors, ARRIS provided the following graphical description of the post-closing structure of New ARRIS:

ARRIS Acquires Pace -- New Arris Post-Closing Structure

 

The deal comes just over two years since ARRIS paid $2.2 billion to acquire the Motorola Home business from Google and catapulted itself to global leader status in the process.

According to the company, the deal “significantly enhances ARRIS international presence, provides large scale entry into satellite segment, [and a] broader product portfolio in equipment, software and services.”

In a letter to employees, ARRIS chairman & CEO said the acquisition of Pace “opens the door for ARRIS’s next phase of growth – through a broader geographic and customer footprint, newly combined complementary product offerings, and enhanced scale. It will provide us with a large-scale entry into the satellite segment. By adding Pace’s innovation and talent, we can further broaden our product portfolio in equipment, software, and services. We will also benefit from Pace’s strong presence in Latin America – one of our industry’s highest growth regions – opening up new global opportunities.”

ARRIS described the Pace product portfolio in the chart below:

ARRIS Acquires Pace -- Pace Product Portfolio

 

The acquisition of Pace gives ARRIS a stronger position in the set-top box business, at the same time as Cisco is being urged by investors to exit from its set-top box unit.  For the first six months if its 2015 fiscal year, revenue in Cisco’s “Service Provider Video” business, which includes STBs decreased by more than 15% versus the same period last year.

“This transaction is another example of ARRIS’s ongoing strategy of investing in the right opportunities to position our company for growth. Adding Pace’s talent, products and diverse customer base will provide ARRIS with a large scale entry into the satellite segment, broaden our portfolio and expand our global presence. We expect this merger will enable ARRIS to increase its speed of innovation. We believe this is a tremendous opportunity for ARRIS and our customers, employees, shareholders and partners around the world as we collaborate to invent the future,” said  Stanzione.

“Pace plc is a great company with a strong track record of pioneering innovation and excellent customer service. Through a combination of organic development and acquisitions, Pace has grown to be a leading technology solutions provider to the PayTV and Broadband industries serving cable, satellite and telco customers across the globe. Over the last three years, Mike Pulli and the wider Pace team have successfully executed against our strategic plan to develop Pace into a more distinctive, profitable and cash generative company, creating significant value for shareholders.

“The Pace Directors believe that ARRIS’s offer recognises this value and also gives our shareholders the opportunity to share in the future success of the combined group. While we believe that Pace is strongly positioned to continue to execute its strategy in the medium and long term, we believe that the combination of the complementary ARRIS and Pace businesses will create a platform for future growth above and beyond our standalone potential. We believe this is a great fit for both companies, our employees, customers and trading partners,” said Allan Leighton, Chairman of Pace.

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Related Content:

Press Release: ARRIS to Acquire Pace plc for $2.1 Billion in Stock and Cash

ARRIS-PACE AGREEMENT AND PLAN OF MERGER

Investor Presentation — ARRIS TO ACQUIRE PACE PLC

ARRIS Employee Letter

Arris-Pace Merger Credit Agreement

Reuters: Arris to buy British set-top box maker Pace in $2.1 billion deal

Reuters — Analysis: Some Cisco investors urge an exit from set-top box unit

Press Release: ARRIS Acquires Motorola Home: Creates Premier Video Delivery and Broadband Technology Company

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© Devoncroft Partners 2009 – 2015. All Rights Reserved.

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Arris Restructures Reporting Following Acquisition of Motorola Mobility, Creates New Business Units

Broadcast technology vendor financials | Posted by Joe Zaller
May 20 2013

 

Cable technology provider Arris announced that following the acquisition of the home businesses of the Motorola Home business from Google, it will now operate in two business segments, Network & Cloud and CPE (Customer Premises Equipment).

 

New Arris Segments - May 15 2013

 

 

The Network & Cloud segment include the former ARRIS CMTS EMP, ATS and MCS products. It also include the former Home, Video, head-end, CMTS equipment as well as the converged experience products. Bruce McClelland has been named president of the Network & Cloud segment. Previously he was Group President Products and Services, and was also responsible for the CPE business unit as VP & GM.

The CPE segment includes include both cable and DSL modems, EMTAs, gateways and set-top boxes from both companies. Larry Robinson, former Motorola Mobility SVP and GM of Home Devices has been named the president of the CPE business unit.

 

On an update conference call with equity analysts, Arris chairman & CEO Robert Stanzione said following the acquisition of Motorola’s Home business, Arris is now a “vastly different company from what we were before.”

Stanzione provided an update on the synergy savings from the deal, which Arris has targeted in the range of $100m – $125m. “Programs are well under way, and we’ve — we’re already meeting or beating the timelines. Sales and marketing synergies are essentially complete. Supply chain analysis is confirming our savings estimates, and actions are under way. G&A and R&D integration plans are also well under way. These will take a little longer to achieve.”

Stanzione also gave a frank assessment of the Motorola home business, but also indicated that the recently acquired business will improve now that uncertainty about its future has been resolved.  “As you know, prior to the acquisition, Motorola Home sales had been in decline. Over the past 2 years, the business went through the long process of being acquired by Google and subsequently being auctioned off. Some momentum was lost due to the internal distractions and customer reluctance to expand their business with Motorola Home given the uncertainty around its ultimate disposition. It’s clear that the management teams put a lot of time and effort into the auction process, and the uncertainty throughout the process took its toll on the employees. An executive of one of our largest customers told me very candidly that his company was holding back on new business until they were satisfied that Motorola Home would land in a good place. Over the past few weeks, I’ve met with other major customers who have expressed similar sentiments as well as an eagerness to get on with some of the projects that they’ve been planning for quite some time. Despite these distractions, the team has done a remarkable job in moving forward with several important initiatives that are going to move the needle in the very near future.”

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Related Content:

Transcript of Arris Q2 2013 Guidance/Update Call, May 15, 2013

ARRIS Second Quarter 2013 Update Conference Call Presentation

Zacks Equity Research: Arris Restructures Business Model

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© Devoncroft Partners. All Rights Reserved.

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ARRIS Announces Preliminary Third Quarter 2010 Results

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Oct 27 2010

Communications technology company Arris Group announced its preliminary results for the third quarter of 2010.

Revenue for the quarter was $274.3m, down slightly from the $275.8m recorded in the same quarter a year ago, and down 2% from the previous quarter.

GAAP net income in quarter was $14.5m, a decrease of 35% versus the same period a year ago.  Year to date, GAAP net income decreased 8% to $52.8m, compared to the first nine months of 2009.  

Gross margin for the quarter 2010 was 37.2% versus 41.9% during the same quarter a year ago.  The company attributed the margin decline to a shift in product mix.

David Potts, ARRIS EVP & CFO said that the company’s Q4 revenue will be in the range of $250 to $275m, with adjusted GAAP net income per diluted share, in the range of $0.05 to $0.09.

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You can read the full Arris Q3 earnings press release here.

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Devoncroft Digest — July 30, 2010 – Earnings Season Continues, Grass Valley Finds a Buyer, More Broadcast Industry M&A, Harris Creates New Division, Elemental and Envivio Close Funding Rounds

broadcast industry technology trends, broadcast industry trends, broadcast technology market research, Broadcast technology vendor financials, Devoncroft Digest, market research | Posted by Joe Zaller
Jul 30 2010

The Devoncroft Digest provides an overview of and insight into industry news items that I think might be interesting / important for readers and clients. 

Here are a few of the things that have caught my eye this week.

Earnings Season Continues

A number of broadcasters, TV platform operators and broadcast technology vendors announced their earnings this week. With one or two exceptions the results were generally positive.

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Broadcast Technology Vendor Earnings

Harmonic posted strong Q2 results.  The company’s revenue was up 18% versus the same period last year, and up 13% versus the previous quarter.  More importantly, the company’s net income of the quarter was $4.4m vs. a loss of $7.9m during the same period last year.

On the company’s earnings conference call and slide presentation Harmonic executives also discussed the pending acquisition of video server company Omneon, and provided a bit more information on Omneon’s business.  Omneon recorded bookings of $57.8m during the first half of 2010, a 19% y/y increase.  For the full year, Omneon is expected to have revenues of $120-$125m, with (non-GAAP) gross margins of 57-57% and (non-GAAP) operating margins of 6-7%.

The market seemed to like what Harmonic had to say.  On the day after the earnings announcement, Harmonic shares were up by almost 17%.

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Technicolor announced its results for the first half of 2010 this week, which saw revenues decline 18.5% versus the previous year.  The company achieved EBIT of €15m from “continuing operations,” but recorded an EBIT Loss of €109m from “discontinued operations.”  The company attributed this EBIT loss “mostly to Grass Valley,” which found a buyer this week after being for sale for more than a year (more on that below).  More information about Technicolor can be found in the slide presentation that the company used during its analyst earnings conference call. 

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Belden issued strong numbers for Q2, beating the expectation of equity analysts.  Driven by strong results from the Americas (which were up 27% y/y), the company’s revenues rose 24% versus the same period a year ago, and 6% versus the previous quarter.    The company issued an upbeat forecast and raised its guidance for the future.

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Audio (and now video) specialist Dolby Labs delivered strong results for its 3rd quarter.  The company’s revenues rose 34% versus the same period last year, and its net income increased by 25% versus Q3 2009.  Dolby which has been pushing aggressively into the 3D and Digital Cinema markets, recorded a non-cash impairment charge of $9.6 million in cost of revenue related to digital cinema systems provided under operating leases to exhibitors.

Separately, Dolby announced an additional $300m for its stock repurchase program, which has the objective of offsetting dilution from the company’s equity compensation programs.

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Cable technology vendor ARRIS announced its preliminary Q2 Results.  The company’s revenues were up slightly, but its net income and gross margins were both down.  Investors were unhappy with these results and sent the company’s shares down sharply.

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Leading set-top box vendor Pace announced strong results for the first half of 2010.  For the first six months of the year the company’s revenues rose by 21% and profit jumped by 46% versus the same period in 2009.  Separately, the company announced its intention to acquire 2Wire (see below).

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Broadcaster & Platform Operator Earnings

European satellite operator Eutelsat announced this week that it achieved a record year, and that its revenue and EBITDA growth both exceeded 11% versus 2009.  The company’s earnings press release that it now delivers 3,662 broadcast TV Channels, and that the number of HDTV channels had grown by 80% during 2010.

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Belo, one of the largest pure-play TV broadcasters in the US delivered strong results for its second quarter of 2010.  The company’s revenue for Q2 was up by 13% versus 2009, and its net income almost doubled.  Significantly the company’s revenue from the automobile sector was up by 51% and its digital (website) revenues grew by 14%. 

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US cable operator Comcast reported that its revenues increased by 6.1% in its second quarter of 2010/  The company’s operating income and cash flow were both up, but it lost 256,000 basic video subscribers.  The company, which is currently seeking approval to purchase NBC-Universal, disclosed that it spent a total of $59m on the deal during the quarter

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UK-based Virgin Media delivered strong results for its second quarter.  The company’s revenue, operating income and cash flow all increased. 

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Broadcast Industry M&A Continues

Multiple broadcast technology M&A deals were announced today:

  • Grass Valley is to be acquired by Francisco Partners, a private equity firm
  • Ross Video is buying Codan
  • Pace announced  proposed their acquisition of 2Wire

 

Francisco Partners has made a binding offer to buy 100% of the shares in Grass Valley

After more than a year on the block, and several rumored bids, Technicolor appears to have found a buyer for Grass Valley – a Private Equity firm called Francisco Partners.    According to Technicolor CFO Stephane Rougeot “This binding offer is a key step in the largest of the disposals we decided to make as part of the strategic refocus of our activity portfolio. This will clarify and solidify our financial profile. This is also positive news for Grass Valley Broadcast employees and customers who will benefit from the engagement of a new shareholder recognized as a leader in technology-based businesses.”

Francisco is buying all of Grass Valley, except for the transmission business, which is being retained by Technicolor.

Technicolor certainly did not get rich from this deal.  It paid $172m for Grass Valley in 2002, and then acquiring multiple companies (including Canopus for more than $100m) over the past few years, the company has now struck a deal with Francisco Partners which according to a Technicolor press release values Grass Valley at $100m.

After reviewing the structure of the deal, one industry insider told me that Grass Valley was sold at what one industry insider described to me a “fire sale.”  In fact it appears that no money will change hands, and that Technicolor will actually pay €20m to Grass Valley in order to fund “ongoing management of the activity.”

For its part, Francisco Partners will sign an $80m IOU, which carries capitalized interest of 5% per year.  This means that Francisco will not pay anything for Grass Valley for at least five years, and that Technicolor will make a large cash injection into the company to keep it going. 

Clearly Technicolor wanted to get rid of Grass Valley and its associated losses so it can focus on its now core business activities.  The only silver lining for Technicolor is that it has the right to “receive additional consideration from the buyer based on the potential future remuneration of the new owners of the disposed entity.”

Grass Valley announced the deal in a press release and a letter to customers.    The company has set up a deal-oriented website where information about the transaction has been published, and has also created an “Ask Jeff.” (as in Jeff Rosica, head of the Grass Valley Broadcast & Professional business) email address where questions about the deal can be sent directly to the company. According to Rosica, who was interviewed by industry website TVNewsCheck, it’s Business As Usual At Grass Valley.

Grass Valley is one of the industry’s great companies and I am sure that the people there are happy to finally have resolved their fate.  Let’s hope they can now focus on making great products – and of course money for their new owners.

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Ross Video Acquires Codan

Ross Video, which is best known for its production switchers and newsroom automation systems, announced that has it entered into a letter of intent to buy 100% of the shares of Codan Broadcast Products Pty Ltd. The sale, subject only to the finalization of due diligence, is scheduled for completion on 31 August, 2010.  The deal will expand the Ross portfolio by adding Codan’s product range of routing switchers, signal processing and audio monitoring.  It also strengthens Ross Video’s foothold in the important Australian broadcast market. This is the second Ross acquisition in the past two years. In 2009 Ross purchased Dutch graphics firm Media Refinery.  

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Pace to Acquire 2Wire

Leading set-top box vendor Pace plc announced its proposed $475m acquisition of 2Wire, a provider of residential gateways and associated software for the broadband service provider market.  According to the press release, 2Wire has established customer relationships in the tier one telco market, including AT&T, which has been a customer of 2Wire for 10 years and uses 2Wire solutions in its U-Verse platform.  2Wire is currently owned by a consortium including Alcatel-Lucent, AT&T, Telmex, and Oak Investment Partners.

Pace says that following the completion of the acquisition it will be the number one provider of telco residential gateway devices in the US and the number three globally.

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3D News – RealD Insiders Cash in on IPO

The Wall Street Journal reports that following on from their successful IPO, insiders at 3D firm RealD Insiders Made More Money in IPO than Company Did.  A skeptical Wall Street equity analyst is quoted in the article as saying that the only reason for the IPO was to generate liquidity for investors.

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Other Broadcast Technology Vendor News

Harris Creates New Division, Names Means GM

The changes continue at the broadcast communications division of Harris.  The company announced this week that it has created a new “Workflow, Infrastructure & Networking” (WIN) business unit, and named newly hired Doug Means as its General Manager.  According to the company’s press release, Means will lead the newly formed WIN business unit, which encompasses the Harris Broadcast infrastructure, networking, server, automation and asset management product portfolios. WIN was formed as part of an overall strategy to create scale, reduce organizational complexity and deliver more interoperable solutions to address the continually changing needs of Harris Broadcast customers.

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 Ross Video Appoints Nigel Spratling to Marketing Role

Production switcher specialist Ross Video has appointed industry veteran Nigel Spratling to a marketing role at the company.  Spratling was most recently the CEO of Echolab, which was forced to liquidate earlier this year when its primary shareholder pulled the plug.  The fate of Echolab is still undetermined, but I have been hearing rumours that Blackmagic Designs is set to announce that they have acquired the company’s assets. 

 

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Evertz Lands Big International Order

Canadian infrastructure vendor Evertz, which prides itself on not doing marketing, took the unusual step of issuing a short press release to announce the fact that the company has received orders in excess of C$7m from an unnamed international customer.   

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Elemental Closes $7.5m Funding Round

Video transcoding firm Elemental Technologies, which uses GPU processing announced that it has closed a $7.5 funding round, bringing the total VC money raised by Elemental to more than $14 million.  The round was led by Steamboat Ventures, with Voyager Capital and General Catalyst Partners also participating.  Interestingly, according to an SEC document filed by Elemental earlier this year,  the company had provisioned to raise up to $9m.  The company says it intends to use the capital to expand its business in the United States and internationally.   Transcoding is a tough business as evidenced by the recent sale of Ripcode (who had raised considerable financing) to RBG.  Perhaps Elemental’s unique GPU-based approach will enable the company to thrive – it gets pretty good reviews from broadcasters according to an article about Pitch Blue which appeared in Broadcasting & Cable magazine this week.

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Envivio Raises $15m

GigaOm property NewTeeVee reported this week that Envivio, another player in the video encoding / transcoding space,  has secured $15m in additional funding and shaken up its management team. 

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Other Platform Operator News

Ascent Media Hires 3 New VPs

Ascent Media has appointed three new vice-presidents for its media and digital services operations in Burbank, CA. 

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MobileTV News

The Wall Street Journal published an interesting article about the state of the mobileTV marketin the USA, which discusses Qualcomm’s Plans for FLO TV, the US broadcaster-backed Open Mobile Video Coalition and mobileTV operator MobiTV.  The WSJ’s finding?  The picture for mobile TV in the US is “fuzzy.”

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Other News

Broadcasting & Cable magazine’s Glen Dickson wrote an interesting article about the new HD file delivery platformsthat are being rolled out by Ascent Media and DG FastChannel. 

According to B&C, Pitch Blue, the new HD file delivery platform from Ascent Media and CBS is now delivering HD content to 1,350 US TV stations, while the new system from DG FastChannel has been deployed in 500 US TV stations.  The B&C article also highlights the need for transcoding systems in TV stations to convert these HD file to house formats.  As mentioned above, Elemental gets a good review from stations.    

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Market Research Note of the Week: Reliability Rankings of Broadcast Technology Vendors — The Top 30 Globally

Broadcast technology products are purchased by discerning customers for what are often mission-critical applications. Thus, the reliability of products is a paramount concern for buyers of these products.

To measure the rankings of the reliability of vendors, respondents were asked to rank broadcast technology vendor brands for “reliability” on a 10-point scale, with 10 being best in the market and one being worst in the market. The top 30 ranked brands are shown in the graph for the global sample of all respondents. There are a wide variety of vendors on this list, including large and small companies and those who produce audio and video products.

When reviewing these results it’s important to understand how many products are produced by each vendor on this list. This will help us to understand if reliability comes from small, focused companies or large, multiproduct vendors.

The 2010 BBS evaluated 27 separate product categories. As with the previously published top 30 quality rankings, single-product companies (those who were covered on only one product category in the 2010 BBS) dominate the rankings for reliability.

To read the full article, including a breakdown and analysis of the findings, click here.

Devoncroft Digest — Week Ending April 30, 2010 — Good new outnumbers bad news for the week

broadcast industry technology trends, Broadcast technology channel strategy, broadcast technology market research, Broadcast technology vendor financials | Posted by Joe Zaller
Apr 30 2010

Devoncroft Digest – Week Ending April 30, 2010

 

Is the market picking up?  Good new outnumbers bad news for the week.

TVB reported that broadcasters have resumed their HD newsroom upgrades.  The article lists multiple stations that have moved ahead with the transition to HD news.  This is welcome news for broadcast vendors, and further reinforces my post-NAB thoughts that the market is picking up.

TVB also reported that, according to BIA/Kelsey, US broadcast station income will increase by 7.5% this year versus 2009.

Further signs of the market is improving were see this week with the four big US broadcast networks seeing a healthy increase in upfront ad sales.  According to Media Post (via TVNewsCheck) Barclays Capital estimated a 20% jump in the upfront market, giving the Big Four broadcasters a combined $8.26 billion.

 

 Earnings Season Continues

 Earnings season is in full swing this week, with Arris, Belden, DivX, Dolby, Discovery and Harris reporting their results.

For the most part, the results were positive, indicating that the market has picked up:

  • Belden announced strong results for their first quarter of 2010.

 

 

 

  • Discovery Communications also posted strong earnings, beating analyst expectations.  Both revenue and profits increased, with an especially strong showing in the international market

 

However, not all results were positive:

  • Arris reported a revenue increase of 5% versus the same period a year ago, but its net income declined 11% versus the previous quarter.  The stock was downgraded by several banks.

 

  • The Broadcast Communications Division of Harris posted a $5m loss for the quarter and took a $1m restructuring charge.  The company lowered guidance for the broadcast division for the full year and announced that it would be taking a further $6m restructuring charge in the current quarter in order to achieve further cost reduction.

 

Other interesting things this week:

According to the Wall Street Journal, RED Cameras has paid almost $20m for a house in Beverly Hills, CA that will be used for guests of the company.  How do I get invited to that house warming party?

Google is reportedly working on Android-based software to enable set-top boxes, TVs and other devices to more content from the Internet.  According to the Wall Street Journal Google’s move has attracted interest from partners that include Sony Corp., Intel Corp. and Logitech International SA, which are expected to offer products that support the software, these people said. None have so far discussed the efforts publicly.

 

 

Market Research Note of the Week:

How are broadcast technology products typically purchased – Direct from vendor, SI or dealer?

As part of the 2010 Big Broadcast Survey I asked several thousand technology buyers (including broadcasters, playout centers, cable/satellite/IPTV operators, education, film studios etc) in 120+ countries how they typically buy broadcast technology products – direct from a vendor; through a systems integrator; through a dealer; or some other way.

It turns out that there is considerable variation in the way broadcast technology products are purchased, with each category of buyer exhibiting different purchasing preferences. 

These results help readers to better understand the channel structure in the broadcast market.  They are interesting because they highlight that there are some times when it makes more sense for vendors to use a channel than go direct.  They also show that there are some types of buyers who are more used to buying through the channel versus direct.

To see the results, including a chart that breaks responses down by company type, please click here.

Devoncroft Digest: A Busy Week for Broadcast Technology Suppliers

Broadcast technology vendor financials | Posted by Joe Zaller
Apr 23 2010

In a week when many in the broadcast industry were busy following up from the NAB show (and quite a few volcano-stranded travelers still struggling to make it home from Las Vegas),  there was quite a bit of activity among broadcast suppliers.

Here are a few highlights:

* Barco reported that the company has “returned to profitable growth.” In the company’s earnings announcement, CEO Eric Van Zele said he is “cautiously optimistic” about the remainder of 2010.  The company also published a 20 page quarterly report in e-book form.

* Avid reported their Q1 FY10 earnings this week.  Losses narrowed on y/y revenue improvement, but the stock was still downgraded by JP Morgan.   Avid also announced that it has completed the acquisition of audio console vendor Euphonix, which was announced last week at the NAB show.

* Storage vendor Isilon released their Q1 FY10 numbers, which saw revenue increase 5% sequentially and 46% versus the previous year.  The company’s stock shot up on the news.  Isilon also filed its 10Q with the SEC.

* Wegener was delisted by the NASDAQ and will now trade on the OTC BB

* Privately held UK-based broadcast systems integrator TSL was ranked #77 in the Sunday Times “Profit Track 100.”  According to the poll, the company’s profits have grown at 47% to £4.28m.

* Harmonic was sued by Arris over VOD patents

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