Posts Tagged ‘Avi Sharir’

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

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Aug 20 2013

Graphics and media asset management (MAM) provider Orad reported that its revenue for the second quarter of 2013 was $7.2m, down 29% versus the same period a year ago, and up 1% versus the previous quarter.

 “The lower level of activity which started in Q3 2012, mostly due to the economic situation in Europe, continued through the second quarter of 2013, as reflected in the disappointing results for the second quarter and also for the first half of the year,” said Orad CEO Avi Sharir.

Orad has been struggling since the third quarter of last year, particularly in Europe, which is the company’s largest market. In February 2013, the Orad issued a profit warning for the full year 2012, saying at that time that it expected its profit to fall by about 34 percent.

The company’s results in Q2 2013 show that the company continues to struggle in the European market. However, the company also reported a bright spot in an otherwise disappointing quarter, saying that its order intake increased during the quarter. “We are happy to announce that during Q2 2013 we booked the highest volume of orders ever in Orad’s history, setting a new record,” said Sharir.

Orad’s product revenue in the quarter was $5.6m (78% of total revenue), down 33% versus the same period last year, and up 7% versus the previous quarter.  Service revenue in the quarter was $1.6m, down 11% versus last year, and down 14% versus the previous quarter.

The net loss for the second quarter of 2013 was $1.3m, or -$0.11 per share, compared to a net profit of $732,000 or $0.06per share last year, and a net loss of $944,000, or $0.08 per share last quarter. 

Including additional charges in the quarter, the total comprehensive loss for the second quarter of 2013 was $1.375m, compared to total comprehensive income of $507,000 last year, and a total comprehensive loss of $1m last quarter.

Gross margins for the quarter were 63% versus 69% last year, and 65% last quarter.

The operating loss for the quarter was $1.46m, compared to an operating profit of $1m last year, and and operating loss of $657,000 last quarter.

Operating expenses for the quarter were $6m (83% of total revenue), down slightly from last year, and up 14% versus the previous quarter.

R&D costs for the second quarter of 2013 were $1.45m, up 5% versus the same period last year, and down 5% compared to last quarter.  R&D costs were 20% of total revenue in the quarter, compared to 14% of total revenue last year, and 21% of total revenue last quarter.

Sales and marketing expenses in the quarter were $3.7m, down 2% versus the same period last year, and up 29% compared to last quarter.  Sales and marketing costs accounted for 51% of total revenue in the quarter, compared to 37% of total revenue last year, and 40% of total revenue last quarter.

Following the company’s sharp rise in sales and marketing costs this quarter, Sharir says that Orad will continue to spend in this area.  “We also continue to invest in our sales and marketing infrastructure and in particular have put emphasis on strengthening our North America office with the addition of a few senior people,” he said.

General and administrative expenses in the quarter were $853,000, down 4% versus the same period last year, and down 4% compared to last quarter.  G&A costs accounted for 12% of total revenue in the quarter, compared to 9% of total revenue last year, and 12% of total revenue last quarter.

The company ended the quarter with $5.6m in cash equivalents and restricted cash, compared to $9.6m last year, and $7.2m last quarter.

 

Announcement of 10 Percent Workforce Reduction

Although the company says it had strong order intake during the second quarter of 2013, Sharir says it’s “too early to tell if we reached a turning point in the level of activity, but it is certainly a very encouraging sign.”

“As a measure of caution, we have decided to align our operating expenses with our current financial results, and have decided to reorganize some departments, reducing our overall headcount by 10% and trim other operational costs as well. The result of these measures will be seen in the lower cost of operating expenses expected as of the fourth quarter of 2013. The decrease in our operational expenses will not affect our continuous focus on strategic initiatives.”

 

First Half 2013 Results

For the first six months of 2013, Orad’s revenue was $14.4m, down 24.7% versus the first half of 2012.

The net loss for the first six months of 2013 was $2.2m, compared to net income of $1.7m for the first half of 2012.

Gross Margins for the first half of 2013 were 64%, down from 69% for the first six months of 2012.

The operating loss for the first six months of 2013 was $2.1m compared to operating income of $1.8m for the first six months of 2012.

Operating expenses in the first six months of 2013 were $11.3m, or 78% of total revenue, down 1% versus last year when total operating expenses accounted for 60% of overall revenue.

R&D expenses for the first half of 2013 was $3m, or 20% of total revenue, up 9% versus the same period a year ago when R&D accounted for 15% of revenue,

Sales & marketing expenses for the first six months of 2013 $6.6m, or 45% of total revenue, down 3% % versus the first half of 2012 when sales and marketing accounted for 45% of revenue.

General and administrative expenses for the first six months of 2013 were $1.7m, or 12% of total revenue, down 9% versus the first half of 2012 when G&A expenses were or 10% of total revenue.

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Related Content:

Press Release: Orad Results for the second quarter and for six months of 2013

Previous Year: Revenue Up, Profit Down at Orad in Q2 2012

Previous Quarter: Orad: Results for the First Quarter

Orad Warns of Lower Revenue, Net Loss in Q4 2012 of 2013

 

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Orad Warns of Lower Revenue, Net Loss in Q4 2012

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 27 2013

Graphics and media asset management (MAM) provider Orad disclosed that it expects its Q4 2012 revenue to be in the range of between approximately $ 6.9m and $7.1m, 18% to 21% lower than the third quarter of 2012.

As a result of the lower revenue, the company says it now expects to report a net loss in the range of $600,000 to $800,000 for the fourth quarter of 2012.

The company said its Q4 2012 revenue decline was “largely due to the economic weakening of Orad’s target markets, particularly Europe. The uncertainties in the economic environment have led to lengthening of sales cycles and to delay of some customers’ investment decisions.”

Orad says that it now expects to report a net profit in the range of $1m to $1.2m for the full year 2012, 27% to 34% lower than last year.

This announcement appears to be a continuation of the decline in European revenue that Orad began to experience in the third quarter of 2012.  The company’s revenue in the third quarter of 2012 was $8.8m, down 2.7% versus the same period a year ago, and down 14% versus the previous quarter. At that time, company CEO Avi Sharir said the company’s Q3 results were impacted by a slowdown in its markets, especially in Europe.

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Related Content:

Press Release: Ad-hoc-Disclosure According to § 15 WpHG

European Slowdown Results in Lower Revenue and Profit for Orad in Q3 2012

Orad Top Line Grows 21% in 2011, Profit up 24%

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European Slowdown Results in Lower Revenue and Profit for Orad in Q3 2012

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Nov 19 2012

Graphics and media asset management (MAM) provider Orad reported that its revenue for the third quarter of 2012 was $8.8m, down 2.7% versus the same period a year ago, and down 14% versus the previous quarter.

Company CEO Avi Sharir said the company’s Q3 results were impacted by a slowdown in its markets, especially in Europe.

Net profit for the quarter was $122,000, down 85% versus last year, and down 81% versus last quarter.

Gross margins for the quarter were 67% versus 71% last year, and 69% last quarter.

Operating income for the third quarter was $11,000, down from $1.036m last year, and $919,000 last quarter.

Operating expenses for the quarter were $5.87m, up 9% versus last year.

R&D expense for the quarter was $1.4m, or 16% of total revenue, up 7% versus the same period a year ago, and flat versus the previous quarter.

Sales & marketing expenses were $3.57m, or 41% of total revenue in the quarter, up 17% versus the third quarter of 2011, and down 6% versus the previous quarter.

G&A expenses in the quarter were $897,000, or 10% of total revenue, down 12% from last year, and flat with the previous quarter.

The company ended the quarter with 261 employees, up from 251 last quarter; and $8.3m in cash, down from $13.1m last year, and $9.6m last quarter.

 

Year-to-date Revenue up 8.5 Percent

For the first nine months of 2012, Orad’s revenue was $27.9m, up 8.5% versus the first nine months of 2011. The company attributed the YTD revenue increase to new products and expansion into new geographic territories.

Net Profit for the first nine months of 2012 was $1.6m, down 30% versus the same period a year ago.

Gross Margins for the first nine months of 2012 were 68%, down from 70% for the same period a year ago.

Operating income for first nine months of 2012 was $1.621m, down 29% versus last year.

R&D expenses for the first nine months of 2012 was $4.22m, or 15% of total revenue, up 12% versus the same period a year ago.  Sales & marketing expenses for first nine months of 2012 were $10.487m, or 38% of total revenue, up 14% versus the same period last year. Year-to-date G&A expenses were $2.795m, or 10% of total revenue, essentially flat with last year.

 

Sharir said that the company’s revenue in the first nine months of 2012 grew by 8% versus the same period in 2011, but that revenue in the third quarter of 2012 was impacted by a slowdown in its main markets, especially in Europe.  This is a contrast to last quarter when the company said that weak macroeconomic environment in Europe, which accounts for approximately half of Orad’s revenue, had not impacted its results.

“We feel proud with the significant part that Orad took in the American elections, a project that demonstrates the company’s strength and status as a leading provider in its field. Orad was chosen to supply equipment and services to 4 leading broadcasting networks in the U.S. during and following the election period, and we are currently engaged in a number of processes for the purpose of selling equipment and services to leading media operators in the U.S.A., Europe and Asia,” said Sharir.

Sharir did not provide an update on the company’s continuing evaluation of registration its shares on the Tel Aviv Stock Exchange, which Orad disclosed earlier this year.

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Related Content:

Press Release: Orad Hi Tec Systems Ltd: Revenues in the first nine months of 2012

Previous Quarter: Revenue Up, Profit Down at Orad in Q2 2012

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Revenue Up, Profit Down at Orad in Q2 2012

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Aug 23 2012

Graphics and media asset management (MAM) provider Orad reported that its revenue for the second quarter of 2012 was $10.2m, an increase of 17.1% versus the same period a year ago, and up 13% versus the previous quarter.  

The company did not break out revenue from UK-based MAM provider IBIS, which Orad acquired in 2011.

Net profit for the quarter was $638,000, down 26% versus last year, and down 24% versus last quarter. Net profit in the quarter was impacted by an unspecified finance charge of $209,000.

Gross margins for the quarter were 69% versus 70% last year, and 69.2% last quarter.

Operating income for the quarter was $919,000, up 14% versus last year, and up 33% versus the previous quarter.

Operating expenses were up across the board.  R&D expense for the quarter was $1.4m, or 14% of total revenue, up 24% versus the same period a year ago.  Sales & marketing expenses were $3.8m, or 37% of total revenue in the quarter, up 16% versus the second quarter of 2011. G&A expenses in the quarter were $899,000, or 9% of total revenue, up 1% from last year.

The company ended the quarter with 251 employees, up from 247 last quarter; and $9.6m in cash, compared to $17.6m last year and $9.2m last quarter.

 

First Half 2012 Results

For the first six months of 2012, Orad’s revenue was $19.1m, up 14.5% versus the first half of 2011. 

Net Profit for the 1H 2012 was $1.5m, flat with last year.  Gross Margins for the first half of 2012 were 69%, flat with 2011.

Operating income for 1H 2012 was $1.6m, up 27.7% versus last year.

R&D expenses for the first half of 2012 was $2.8m, or 15% of total revenue, up 15% versus the same period a year ago.  Sales & marketing expenses for 1H 2012 were $6.9m, or 36% of total revenue, up 13% versus the first half of 2011. G&A expenses in the 1H 2012 were $1.9m, or 10% of total revenue, up 7% from last year.

 

Orad CEO Avi Sharir said the company finished the first half of 2012 with the highest level of income in its history, and that weak macroeconomic environment in Europe, which accounts for approximately half of Orad’s revenue, had not impacted its results.

Sharir did not provide an update on the company’s continuing evaluation of registration its shares on the Tel Aviv Stock Exchange, which Orad disclosed last quarter.

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Related Content:

Press Release: Orad Results for the second quarter and for six months of 2012 

Previous quarter: Orad Revenue Up 12 Percent in Q1 2012 

More Broadcast Vendor M&A: Orad Buys 63 Percent of MAM Specialist IBIS for $2.11m

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Orad Revenue Up 12 Percent in Q1 2012

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
May 31 2012

Graphics and media asset management (MAM) provider Orad reported that its revenue for the first quarter of 2012 was $9m, an increase of 12% versus the same period a year ago, and down 7% versus the previous quarter.

Net profit for the quarter was $840,000, up 32% versus last year, and down 24% versus last quarter. Gross margins for the quarter were 69.2% versus 68.5% last year, and 65% last quarter.

Operating income for the quarter was $691,000, up 51% versus last year.

The company ended the quarter with $9.2m in cash and 247 employees.

Company CEO Avi Sharir said the quarter results reflect continued revenue growth and profitability, driven by new product introductions such as the VJ server, which contributed approximately 10% of revenue in the quarter. Sharir also said that the company is continuing to evaluate the registration of the Company in the Tel Aviv Stock Exchange.

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Related Content:

Press Release: Orad – Results for the First Quarter of 2012

Previous Quarter: Orad Top Line Grows 21% in 2011, Profit up 24%

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Orad Top Line Grows 21% in 2011, Profit up 24%

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Mar 01 2012

Graphics and media asset management (MAM) provider Orad reported that its revenue for 2011 was $35.3m, up 21% versus the full year 2010.  The company attributed its growth to sales of new products and improved performance in Europe and North America

Net profit for the year was $3.4m, up 24% versus 2010. Gross margins for the year were 69%, down from 70% in 2010.

The results include six months contribution from IBIS, a MAM vendor that was acquired by Orad in August of 2011. On a pro-forma basis, assuming a full year’s contribution from IBIS, Orad reported a profit of $2.96m on revenue of $36.7m.

 

Results for Q4 2011

Orad’s revenue for the fourth quarter of 2011 was $9.6m, up 18% versus the same period a year ago, and up 7% versus the previous quarter.

Net profit for the fourth quarter was $1.1m compared to $0.7 million last year. Gross margins for the fourth quarter were 65% versus 58% last year.

Orad president & CEO Avi Sharir was upbeat about the results saying  “We are publishing today record results for the company, both in terms of revenue for 2011 and its fourth quarter, and in terms of net profit. Revenue growth in 2011 was due to the launch of new products and a double-digit growth in sales in Europe and North America. We increased orders, particularly in the second half of the year and we anticipate continued growth in 2012 mainly from large sporting events like Euro 2012 and London Olympics, and due to the U.S. Presidential elections.”

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Related Content:

Press Release: Orad Announces Results for the fourth quarter and for full year of 2011

Previous Quarter Press Release: Results for the third quarter and for the nine months of 2011

Previous Year Press Release: Results for the fourth quarter and for full year of 2010

More Broadcast Vendor M&A: Orad Buys 63 Percent of MAM Specialist IBIS for $2.11m

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