Posts Tagged ‘Belden’

Industry Thought Leaders to Discuss “Shifting Media Economics: Impact on Strategy, Finance, and Technology” at 2015 NAB Show

Analysis, broadcast industry technology trends, broadcast technology market research, Broadcast technology vendor financials, Broadcast Vendor M&A, Conference Sessions, Online Video, OTT Video | Posted by Joe Zaller
Apr 09 2015

Whether you are a supplier, buyer, or investor in the media technology sector, you won’t want to miss the fourth annual NAB Show event co-produced by Devoncroft Partners and the organizers of the NAB Show.

 

NAB Devoncroft 2015 Shifting Media Economics Session Announcement

 

Now part of the NAB 2015 Media Finance and Investor Conference, “Shifting Media Economics: Impact on Strategy, Finance, and Technology,” will be held on Sunday April 12, 2015 in room N235 of the Las Vegas Convention Center.

Designed to be a thought-provoking kickoff to the 2015 NAB Show, this half-day conference examines the “the business of the media business” from the perspective of all levels of the media value chain. It includes panel discussions featuring C-level executives from leading broadcasters, service providers, technology vendors, and private equity investors. Each group will offer a candid assessment of how their respective business models, operational practices, and strategic decision making have been impacted by the dramatic shift in media industry economics.

The keynote, “The Future of TV. One Man’s Opinion.” will be delivered by Bob Bowman, President, Business & Media of Major League Baseball (MLB), who oversees MLB Advanced Media (MLBAM) and MLB Network.

MLBAM has been involved with several recent high-profile streaming events including WrestleMania 31, the opening day of Major League Baseball, the NCAA March Madness basketball tournament, and the recent launch of HBO Now.  Bowman is scheduled to take the stage just one hour before the highly anticipated season 5 premiere of “Game of Thrones” becomes available via HBO Now.

The conference will also include presentations of the latest market research on industry trends and financial performance.  This includes preliminary excerpts from the Devoncroft Big Broadcast Survey, the industry’s definitive demand-side study of the broadcast and digital media industry; and the 2015 IABM DC Global Market Valuation Report, the industry’s definitive supply-side market sizing report.

In advance of the NAB Show, Devoncroft Partners has published an analysis of the trends and strategic drivers in the broadcast and media technology sector. This report is available to download here (registration required).

This conference is intended for senior executives from technology vendors, end-users, and investment firms in the media technology sector. It provides an excellent opportunity to network with industry executives and the financial community ahead of NAB show commitments.

Approximately 400 executives attended this standing-room only event in 2014. We hope to see you there on Sunday April 12, 2015.

Please note that because this event is part the 2015 NAB Show Media, Finance and Investor Conference, registration is required.

 

An overview of the conference is included below.  Full details are available on the NAB Show website.

 

Shifting Media Economics: Impact on Strategy, Finance, and Technology

 

1:40pm – Welcome and Introductions

Presenter:

  • Peter White, CEO IABM

 

 

1:50pm – Review of Market Developments

Josh Stinehour of Devoncroft will take the podium for his annual (enthusiastic) presentation on developments in the media technology sector.  If you have any final announcements you would like Josh to consider for his presentation, let him know.

Presenter:

  • Joshua Stinehour, Principal Analyst Devoncroft Partners

 

 

2:15pm – The Broadcast & Media Technology Industry in 2015

Devoncroft founder Joe Zaller will present a data-driven overview of the forces bringing dynamic change to the media technology sector in 2015. This will include preliminary results of the 2015 Big Broadcast Survey, the industry’s most comprehensive demand-side study, and observations from the 2015 IABM DC Global Market Valuation Report, the industry’s definitive supply-side market sizing report.

Presenter:

  • Joe Zaller, President Devoncroft Partners

 

 

2:40pm – Business Strategy Perspectives from Industry Executives

CEOs from four of the media and broadcast industry’s largest technology suppliers will debate the most important commercial issues facing the industry, and discuss their strategies to position their companies for success in a rapidly evolving marketplace.  The panelists will also offer opinions on how changes in the business environment are impacting vendors and customers.

Moderator:

  • Joe Zaller, President Devoncroft Partners

 

Panelists:

  • Patrick Harshman: President and Chief Executive Officer, Harmonic, Inc.
  • John Stroup: President, Chief Executive Officer, Belden, Inc.
  • Tim Thorsteinson: Chief Executive Officer, Quantel and Snell
  • Charlie Vogt: Chief Executive Officer, Imagine Communications

 

 

3:20pm – The Broadcast Buyer Perspective on Industry Trends

Senior technology executives from four leading broadcasters will offer informed perspectives on the most significant industry trends affecting technology budgets and the technology purchase decision.  The audience will benefit from an emphasis on the business implications of technology decisions to broadcasters.

Moderator:

  • Joe Zaller, President Devoncroft Partners

 

Panelists:

  • Ken Brady: SVP Media Technology and Operations, Turner Broadcasting Systems
  • Richard Friedel: EVP & General Manager, Fox NE&O
  • Fred Mattocks: GM Media Operations & Technology, Canadian Broadcasting Corporation
  • Bob Ross: SVP East Coast Operations, CBS Broadcasting, Inc.

 

 

4:00pm – The Service Provider Perspective on Industry Trends

A panel of executives from leading media service providers will discuss views on both technology developments and deployment considerations for media organizations.  Discussion topics will include solutions for multi-platform content delivery, the economics of outsourcing, how service providers can leverage their scale to deliver increased performance and agility, and how next-generation data center architecture may impact the media ecosystem.

Moderator:

  • Joe Zaller, President Devoncroft Partners

 

Panelists:

  • Darcy Antonellis: Chief Executive Officer, Vubiquity
  • Anil Jain: SVP & GM Media Group, Brightcove, Inc.
  • Steve Plunkett: Chief Technology Officer, Ericsson Broadcast & Media Services

 

  

4:30pm – The Institutional Investor Perspective on Industry Trends

A panel of leading investment professionals in the media and entertainment sector will offer the audience the institutional investor’s perspective on the industry. The discussion will include the panelists’ intelligence-gathering plans for the NAB Show, views on the trends that are driving investment dollars in the sector, and a review of the characteristics influencing the evaluation of an investment opportunity in the media technology industry.

Moderator:

  • Joshua Stinehour, Principal Analyst Devoncroft Partners

 

Panelists:

  • Chris Kanaley: Vice President, Parallax Capital
  • Nick Lukens: Vice President, Vector Capital
  • Bryce Winkle: Vice President, The Gores Group

 

5:00pm – Keynote: The Future of TV. One Man’s Opinion.


Presenter:

  • Bob Bowman, CEO MLB Advanced Media

 

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© Devoncroft Partners 2009 – 2015. All Rights Reserved.

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Thorsteinson Replaces Cross as CEO of Quantel and Snell

Analysis, Broadcast technology vendor financials, Broadcast Vendor M&A, Broadcaster Financial Results | Posted by Joe Zaller
Mar 04 2015

Quantel and Snell announced that Tim Thorsteinson has replaced Ray Cross as CEO, effective immediately.news_Tim_Thorsteinson

According to the company, Thorsteinson “is the ideal individual to lead the next stage in the development of the combined Quantel and Snell.”

Cross, who had been CEO of both Quantel and Snell since March 2014, when it was announced that Quantel had acquired fellow UK-based broadcast technology vendor Snell, a deal that had been long-rumored in the industry, since the two companies already had a common parent, Lloyds Development Capital (LDC), the investment arm of Lloyds Bank.

Previously, Cross had been CEO of Quantel since December 2005.

At the time of the Quantel-Snell deal, the company said in a statement that the combined entity had revenue of more than $170 million and office in 16 locations around the globe, making it one of the larger vendors in the broadcast industry.  The company has not provided an update on its performance since that time.

It will be interesting to see what moves Thorsteinson, a longstanding broadcast industry executive, will make as CEO of Snell and Quantel, companies he has competed against in previous roles.

Thorsteinson is a well-known figure in the broadcast industry having headed-up several of the industry’s largest technology vendors over the past 15 years.

In January 2013, Thorsteinson was named CEO of Grass Valley, replacing Alain Andreoli, who had been appointed by private equity firm Francisco Partners following their 2010 acquisition of Grass Valley from Technicolor.

Just over a year later, Thorsteinson oversaw the $220m sale of Grass Valley to Belden Corporation, who combined it with Miranda, keeping the Grass Valley moniker for the enlarged entity.

Interestingly, Thorsteinson was also involved in the sale of Miranda to Belden.  In April 2012, he appointed a director of Miranda Technologies during the time that activist investor JEC Capital was agitating for a sale of that business.  Three months after Thorsteinson became a director of the company, Belden Corporation acquired Miranda for an enterprise value of $356m.

Thorsteinson was the President of Harris Corporation’s Broadcast Communications Division from 2006-2010.  He was appointed to this role following the $460m purchase by Harris of Leitch Technology Corporation, where Thorsteinson had been CEO since November 2003.

Prior to Leitch, Thorsteinson was CEO of Grass Valley Group, and oversaw the December 2001 sale of Grass Valley Group to Thomson Multimedia for $172m.

“We are delighted to have Tim Thorsteinson join Quantel to continue the company’s transformation. Tim has a proven track record of value creation, and his knowledge and experience are a great fit to grow the combined Quantel and Snell business into a major force in the rapidly changing broadcast industry,” said Chris Hurley, Managing Director Lloyds Development Capital and Quantel Board Director. “I would also like to thank Ray for all his hard work and achievements at Quantel over the past 10 years.”

“I’m very excited to be joining Quantel,” said Thorsteinson. “It is one of the larger independent businesses in our industry, with world class products and a rich history of innovation. I want to build on that tradition to create an organization 100% focused on helping our customers prosper in the media technology world.”

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Related Content:

Press Release: Tim Thorsteinson becomes Quantel CEO

Broadcast Vendor M&A: Quantel Acquires Snell

Press Release: Quantel acquires Snell to create new force in media technology

Quantel – Snell FAQ

Belden Makes it Official – Combination of Grass Valley and Miranda to be Called Grass Valley

Broadcast Vendor M&A: Belden Completes Acquisition of Grass Valley, Will Invest $25 Million in Integration of Combined Business

Broadcast Vendor M&A: Belden Buys Grass Valley for $220 Million

Belden Closes Deal to Acquire Miranda

Thorsteinson Appointed to Miranda’s Board of Directors in Otherwise Uneventful AGM

Miranda Nominates Tim Thorsteinson as Director

Activist Shareholder Drama Continues at Miranda Technologies

Technicolor Receives a Binding Offer from Francisco Partners for Grass Valley Broadcast Business

Press Release: Tim Thorsteinson Named President of Harris Corporation’s Broadcast Communications Division

Press Release: Harris Corporation Completes Acquisition of Leitch Technology

WSJ Article: Thomson Multimedia to Buy Grass Valley for $172 Million

Broadcast Vendor M&A: Belden Buys Grass Valley for $220 Million

Belden’s Acquisition of Miranda to Close on or Before July 27, 2012

TVNewsCheck Article (9-29-2011): Tech One-on-One With Simon Derry — Snell Aims To Master the U.S. Market

Advent Venture and LDC close £72m broadcasting merger

Advent Venture Partners and LDC Complete Their Portfolios Merger – March 9, 2009

Video: Pro-Bel and Snell & Wilcox CEOs Discuss Merger (2009)

Press Release (11-6-2003): Chyron Sells Pro-Bel to LDC

Broadcast Magazine (2002): Snell Secures £22m from Advent

Press Release (2002) Advent Venture Partners invests GBP13m in Snell & Wilcox

Variety Article (7-14-2000): Carlton sells tech arm Quantel to LDC for £51 million 

 

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© Devoncroft Partners 2009 – 2015. All Rights Reserved.

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Belden Makes it Official – Combination of Grass Valley and Miranda to be Called Grass Valley

broadcast industry trends, Broadcast Vendor M&A | Posted by Joe Zaller
Apr 02 2014

One day after Belden completed its $220m acquisition of Grass Valley, the company has officially revealed that the combined company will be called Grass Valley.

The company branding combines Grass Valley’s “GV” script and Miranda’s trademark, purple ellipse.

If you want to hear what’s next for the new Grass Valley, be sure to attend the annual IABM Annual NAB State of the Industry Breakfast at the 2014 NAB Show, where Grass Valley Marco Lopez will be featured on a panel of technology vendor CEOs that also includes Brian Cram from Dejero Labs, Charlie Vogt from Imagine Communications (formerly Harris Broadcast), and Carl Dempsey from Wohler Technologies.

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Combined GV-Miranda Logo

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Related Content:

Broadcast Vendor M&A: Belden Completes Acquisition of Grass Valley, Will Invest $25 Million in Integration of Combined Business

Broadcast Vendor M&A: Belden Buys Grass Valley for $220 Million

2014 NAB Show Session Details – IABM Annual NAB State of the Industry Breakfast

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Broadcast Vendor M&A: Belden Completes Acquisition of Grass Valley, Will Invest $25 Million in Integration of Combined Business

Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
Apr 01 2014

Belden announced that it has completed the acquisition of the previously announced offer to purchase Grass Valley. When the deal was announced in February 2014, Benden CFO Henk Derksen told equity analysts that the $220m deal would be funded with existing cash.

Grass Valley had approximately $290 million in revenue according to Belden’ press release, so the deal values Grass Valley at 0.75 revenue.

It is believed that the enlarged company will be branded Grass Valley.

According to Belden, the value of the combination of the two companies is clear for both customers and shareholders is clear. The company says that by aligning both resources and strategies, the business will have a broader offering, while realizing the benefits of scale.

Belden also says the combined company “will be able to deliver the ability to simplify the purchasing and management of highly complex infrastructures.”

Belden says acquisition of Grass Valley will be immediately accretive to adjusted earnings per share with an estimated impact of approximately $0.20 in 2014 and $0.50 in 2015.

Much of the increased profitability of the new company is likely to come through synergy savings.

One of the hallmarks and core competencies of the Belden team is the efficient integration of acquired companies into the Belden family, and the associated inculcation with the “Belden Business System, including LEAN enterprise techniques and the Market Delivery System.”

There are many examples of Belden buying underperforming companies and subsequently using its internal processes to achieve strong financial performance and operating return.

Indeed, the company says “there is a significant opportunity in the application of the Belden Business System” in the case of Grass Valley

Derksen told analysts at the time of the announcement that Belden plans “to invest approximately $25 million during the first 12 months of integration largely through restructuring efforts to capture the value of the combined company. The strategic actions will include cost actualization, manufacturing footprint and leveraging a combined sales and marketing function and the implementation of lean principles.”

At same time Belden CEO John Stroup said “the result of the integration is unlikely to include meaningful reductions in R&D investment. However, I think there’s going to be an opportunity for Miranda to throttle back on some investments where Grass Valley’s stronger and for Grass Valley to throttle back on opportunities where Miranda’s stronger. Manufacturing is a clear opportunity. Today, Grass Valley outsources a lot of their manufacturing. We think there’s an opportunity for us to leverage our existing fixed cost structure, absorb that manufacturing. So that’s a clear opportunity to create value in the combined business and there’s clearly an opportunity to leverage our global sales force. Both of us at 200 and 300 million respectively, have created a global sales force calling on the same customers and we see a clear opportunity to improve our efficiency there. So the assumptions that we have in place include manufacturing cost synergies as well as the opportunity to leverage the combined sales organization, both in terms of cost and revenue.”

 

The following slides show the strategic rationale for the Miranda – Grass Valley merger, as explained by Belden in February 2014.

 

Belden Buys Grass - 1

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Belden Buys Grass - 2.

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Belden Buys Grass - 3

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Belden Buys Grass - 4

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Belden Buys Grass - 5

 

 

Given that it is believed that the combined company will be branded as Grass Valley, the deal marks a new beginning rather than the end of the road for the formidable broadcast brand.

Prior to officially becoming part of Belden, what is now Grass Valley has been through a number of strategic changes in the last 10-15 years.

This started in December 2000 when Thomson purchased Philips Professional, which at that time had revenue of approximately 250m Euros, and employed 1,050 people. Philips products, which included cameras, film imaging, signal processing, media networking & control, and systems integration services, became part of Thomson Multimedia.

After the Philips acquisition, the combined company, which was renamed Thomson Multimedia, had combined revenue of approximately 366m Euros.

In 2001, Thomson bought Grass Valley in 2001 for $172m.  At that time, Grass Valley had revenues of about $200m.

Technicolor then went on a buying spree, acquiring multiple companies that were ultimately folded into the Grass Valley brand.

Thomson added to its Grass Valley holdings with the 2005 acquisition Canopus for more than $100m.

By the late 2000s Thomson – which had by this time changed its name to Technicolor – put Grass Valley on the block, initially with what has been described as a very high price tag.

After several rumored bids, and more than a year on the block Technicolor sold what is now Grass Valley to Francisco Partners, a San Francisco – based private equity firm.

Technicolor retained other parts of the business, including transmitters and head-end equipment, and later sold-off these assets in two separate transactions.

Technicolor sold the Grass Valley transmission business to PARTER Capital Group.

The Grass Valley head-end business was sold to FCDE in March 2011.

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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Related Content:

Press Release: Belden Announces Successful Completion of Grass Valley Acquisition

Broadcast Vendor M&A: Belden Buys Grass Valley for $220 Million

Press Release: Technicolor to sell its Broadcast Services activity to Ericsson

Belden Q3 2012 Revenue Declines 6 Percent, Miranda “Off to a Slow Start”

Broadcast Vendor M&A: Miranda Buys Softel

Belden Closes Deal to Acquire Miranda

More Broadcast Vendor M&A: Belden Buys Miranda for $350 Million in All-Cash Deal

More Broadcast Vendor M&A: Technicolor Closes Deal to Dispose of Grass Valley Transmission Business

Technicolor Receives Binding Offer for Video Head-End Business

Technicolor decides not to sell digital signage provider PRN

Technicolor completes sale of Grass Valley to Francisco Partners

 

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Broadcast Vendor M&A: Belden Buys Grass Valley for $220 Million

broadcast technology market research | Posted by Joe Zaller
Feb 06 2014

Belden has submitted a binding offer to purchase privately held Grass Valley, a leader within the broadcast market, for $220 million.

The binding offer is subject to consultation with Grass Valley’s foreign labor works council, after which we will enter into a definitive agreement. Grass Valley provides innovative technologies including production switchers, cameras, servers, and editing solutions within the mission critical applications of broadcast customers. When combined with Miranda, the resulting end-to-end solution will be the most complete and compelling in the industry.

Grass Valley had approximately $290 million in revenue according to Belden’ press release, so the deal values Grass Valley at 0.75 revenue.

Even so, it’s probably not a bad deal for Grass Valley’s owner, PE firm Francisco Partners, which  purchased Grass Valley from Technicolor in 2011 (closed in January 2011), for no money down, and an $80 million promissory not payable five years from the date of the deal.

Part of Francisco Partner’s deal to buy Grass Valley included an undisclosed additional pay-out if Francisco Partners sold Grass Valley for a partner in the future.  Since these numbers are unknown, it’s difficult to know if the payments were triggered.

“The great thing about this overlap is the limited overlap,” said Belden CEO John Stroup.

“We are extremely excited to have Grass Valley join the Belden family. By combining Grass Valley and Miranda, we will create the broadcast industry’s largest and most complete portfolio,” said Mr. Stroup.

 

Here’s info on the deal and the rationale for it:

 

Belden Buys Grass - 1

Belden Buys Grass - 2

Belden Buys Grass - 3

 

Belden Buys Grass - 4

 

 

Belden Buys Grass - 5


Belden Buys Grass - 6


Related Content:

Press Release: Belden Reports Solid Results in Fourth Quarter 2013 and Announces Binding Offer to Acquire Privately Held Grass Valley for $220 Million

Press Release: Technicolor to sell its Broadcast Services activity to Ericsson

Belden Q3 2012 Revenue Declines 6 Percent, Miranda “Off to a Slow Start”

Broadcast Vendor M&A: Miranda Buys Softel

Belden Closes Deal to Acquire Miranda

More Broadcast Vendor M&A: Belden Buys Miranda for $350 Million in All-Cash Deal

More Broadcast Vendor M&A: Technicolor Closes Deal to Dispose of Grass Valley Transmission Business

Technicolor Receives Binding Offer for Video Head-End Business

Technicolor decides not to sell digital signage provider PRN

Technicolor completes sale of Grass Valley to Francisco Partners

 

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

Belden Eyes Improvement in Broadcast Business in Second Half of 2013 After “Tepid” First Six Months

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Aug 12 2013

Belden said its broadcast revenue for the second quarter of 2013 was $169.7m,   up 7.1% versus last quarter.  The company said the sequential growth in broadcast was “driven largely by typical seasonal patterns.”

Broadcast operating profit margins were 14.2%, up from 4.7% last year (prior to the acquisitions of Miranda and PPC), and up 90 basis points sequentially, which the company said was in line with its overall results.

Belden management said that “broadcast markets in 2012 benefited from the Olympic Games and U.S. election cycle, with an unfavorable impact to the second quarter of approximately $2 million to $4 million on a year-over-year basis.”

On the company’s conference call with equity analysts, Belden CEO John Stroup described the broadcast market as cyclical, saying “2012 had a lot of demand as a result of the Olympic Games as well as the U.S. presidential election. And as a result, I think the first half (of 2013) was a little tepid (for broadcast), and I think we’ll see improvement in the second half (of 2013).

Although Belden did not break our revenue figures for Miranda, which it acquired last year, it did say that the Miranda business performed in-line with its expectations.

 

Outlook

“The global macroeconomic environment in 2013 is generally as we anticipated, and we remain confident in our ability to deliver consistent operating results in the second half of the year,” said Stroup.  “Therefore, we are increasing the midpoint of both our revenue and earnings outlook for the full year.”

Belden says expects third quarter 2013 adjusted revenues to be in the range of $525m – $535m and adjusted income from continuing operations per diluted share to be in the range of $0.90 – $0.95. For the full year ending December 31, 2013, the Company now expects adjusted revenues to be the range of $2.09 billion – $2.12 billion and adjusted income from continuing operations per diluted share to be in the range of $3.54 – $3.69.

Previously, the company said it expected full year adjusted revenues to be in the range of $2.07 billion – $2.12 billion and adjusted income from continuing operations per diluted share to be in the range of $3.49 – $3.69.

On a GAAP basis, Belden expects third quarter 2013 revenues to be in the range of $522m – $532m and income from continuing operations per diluted share to be in the range of $0.55 – $0.60. For the full year ending December 31, 2013, the company expects revenues to be in the range of $2.08 billion – $2.11 billion and income from continuing operations per diluted share to be in the range of $2.11 – $2.26.

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Related Content:

Press Release: Belden Reports Solid Results in Second Quarter 2013

Belden Q2 2013 Earnings Call Transcript

Belden Creates Broadcast Business Unit, Discloses Broadcast Revenue and Profitability

Belden Presentation (April 25, 2013) — Explanation of New Business Unit Reporting Structure

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© Devoncroft Partners 2009 – 2013. All Rights Reserved.

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Belden Creates Broadcast Business Unit, Discloses Broadcast Revenue and Profitability

Broadcast technology vendor financials | Posted by Joe Zaller
Apr 25 2013

Belden announced that it will now report its earnings according to the following four business segments: Industrial Connectivity Solutions, Industrial Information Technology (IT) Solutions, Enterprise Connectivity Solutions, and Broadcast Solutions.

The company said that these reporting changes have no impact to Belden’s consolidated financial results and no adjustment to previously provided financial guidance or strategic goals is intended or implied by this announcement.

Belden will be reporting results under these new business segments on the beginning with its Q1 2013 earnings announcement.

As per the chart below, the company had previously reported its financials according to geography.

Belden Segmentation

 

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Belden CFO Henk Derksen said that the reporting changes are a more intuitive and insightful way to present Belden’s results going forward changes, and that the solutions-based orientation enables Belden to be more focused and agile as an organization, and provide investors with further transparency into the company’s business operations.

The broadcast business will continue to be managed by Strath Goodship (Miranda CEO), Dave Jackson, and Jimmy Rayford (Belden VP, Business Development).

Denis Suggs, EVP, Americas Operations & Global Cable Products, who had previously overseen the broadcast business, has decided to pursue opportunities outside of Belden. Denis will continue at Belden through July to allow for an orderly transition. “We thank Denis for his solid performance over the past six years, and appreciate the strong team he has assembled. We wish Denis the best in his future endeavors.” said John Stroup, president and CEO of Belden.

As shown below, the company’s broadcast solutions segment consists of Belden’s existing broadcast sales as well as those of Miranda (acquired in July 2012 for $362m) and PPC (acquired in December 2012 for $515.7m).

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Belden Broadcast Segment Financial Metrics

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Belden’s broadcast business had 2012 revenue of $362.6m in 2012.  However these results include only 5 months of revenue from Miranda, and minimal contribution from PPC.

According to Derksen, if full year 2012 revenue from both Miranda and PPC were included in the broadcast business figures, total broadcast revenue in 2012 was $684m with an operating margin of 13-15%. For reference, according to previously published reports Miranda’s last full year of reported revenue was approximately $180m, and PPC’s revenue in 2012 was approximately $238m.

As part of the changes to reporting, Belden will no longer report geographic results on a regular basis, but may occasionally report geographic results for illustrative purposes.  However, in order to help analyst transition their financial models, Derksen disclosed that 87.2% of 2012 broadcast revenue came from the Americas, 7.9% was from EMEA, and 4.9% was from APAC.

Similarly the company will not make product results available as the company mores from product sales to solution selling.

The company also said it will not be breaking out its operating expenses (R&D, G&A, and sales and marketing) on a segment basis.

Derksen said these changes were made because “the old way of looking at Belden is no longer insightful” due to the many changes at the company and in its markets over the past several years.

“This announcement marks another key milestone in the transformation of our business. We believe this action highlights our strategic focus on continuing to build leading global businesses with strong financial attributes. Through this, Belden can deliver even more value to our enterprise, industrial and broadcast customers around the world and quickly capitalize on new market opportunities,” said Stroup.

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Related Content:

Press Release: Belden Announces Formation of Global Business Segments

Revenues at Miranda Technologies Down 10 Percent in Q4 2012

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© Devoncroft Partners. All Rights Reserved.

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Revenues at Miranda Technologies Down 10 Percent in Q4 2012

Broadcast technology vendor financials, Broadcast Vendor M&A, Quarterly Results, SEC Filings | Posted by Joe Zaller
Mar 04 2013

Miranda Technologies posted Q4 2012 revenue of approximately $44.3m, down about 10% versus the same period a year ago (when the company reported record revenues for both the quarter and the full year), and down about 8% versus the previous quarter.

The results were disclosed in a regulatory filing from parent-company Belden, which stated: “Our revenues and income (loss) from continuing operations before taxes for 2012 included $73.6 million and ($11.5 million), respectively, from Miranda. Included in our income from continuing operations before taxes for 2012 are $10.6 million of cost of sales related to the adjustment of inventory to fair value and $10.9 million of amortization of intangible assets. In addition, we recognized $2.5 million of transaction costs associated with the acquisition in 2012, which are included in our selling, general, and administrative expenses.”

Miranda was acquired by Belden in July 2012 for $374.7m, and its results have been included in Belden’s consolidated financial statements since July 27, 2012.

Because of the timing of Belden’s purchase of Miranda, the company’s revenue for the full year 2012 is unknown.  This is because Miranda did not report its results for the second quarter of 2012 as it was acquired by Belden just prior to the date when it was scheduled to announce these results.

Miranda did however, disclose revenue for Q1, Q3, and Q4 2012 of $41.35 (C$42.2m), ~$48m and ~$44.3m respectively, or approximately $133.65m in aggregate for the three quarters.

Miranda’s revenue for the full year 2011 was $177.3 (C$181.9m), so unless the company had revenue in excess of $43.65m in the second quarter of 2012, its 2012 revenue will have been lower than the previous year.  Miranda’s revenue for the second quarter of 2011 was $42.1m (C$43.2m).

Please keep in mind that the above numbers are approximate due to exchange rate fluctuations between the Canadian Dollar and the US Dollar since the beginning of 2011.

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Related Content:

Belden FY 2012 10-K Filing

Belden Q4 and FY 2012 Earnings Presentation

Previous Quarter: Belden Q3 2012 Revenue Declines 6 Percent, Miranda “Off to a Slow Start”

Broadcast Vendor M&A: Miranda Buys Softel

Belden Closes Deal to Acquire Miranda

More Broadcast Vendor M&A: Belden Buys Miranda for $350 Million in All-Cash Deal

Previous Year: Miranda Reports 27% Revenue Increase in 2011

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© Devoncroft Partners. All Rights Reserved.

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Broadcast Vendor M&A: Miranda Buys Softel

Broadcast Vendor M&A | Posted by Joe Zaller
Jan 25 2013

In a move that it says will bolster its playout offering, Miranda Technologies announced that it will acquire Softel, ad UK-based, provider of captioning and subtitling technology. Terms of the deal were not disclosed.

This is Miranda’s first acquisition since the company was purchased by Belden in 2012.  At that time Belden executives said that they intended to use Miranda as a “platform” through which they could build a larger business in the broadcast industry through strategic M&A.  Although this initial deal is a “bolt-on” to Miranda’s existing playout business, it offers evidence that Miranda will indeed continue to be a consolidator in the broadcast technology market.

According to Miranda President Marco Lopez, captioning is one of the areas of the playout chain that is often difficult to manage. “By introducing Softel’s technology into the Miranda portfolio and directly integrating it into our iTX solution, we’ll present broadcasters with further efficiencies, not only in the purchase process, but also during deployment and in post-sale support as well. Miranda will continue to support the full Softel solutions suite and honor all Softel partner agreements.”

“We’re certain our customers will benefit from the synergies this acquisition creates,” said Sam Pemberton, Softel’s CEO. “Being aligned with Miranda in the Belden family extends our reach into potential new markets and being part of this team allows us to focus on continuous innovation.”

Integration planning will be led by a team of Miranda and Softel executives, but there will be no business disruption for Miranda or Softel during the transition. The integration is expected to be complete by this summer.

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Belden Q3 2012 Revenue Declines 6 Percent, Miranda “Off to a Slow Start”

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Nov 12 2012

Belden reported that its revenue for the third quarter fiscal 2012 was $490.4m, down 6% versus the same period a year ago, and up 1% versus the previous quarter.

The Q3 net loss was $38.8m, or $1.14 per share, versus net income of $31.2m last year, and a net income of $42.4m during the previous quarter. The operating loss for the quarter was $7.6m, versus operating income of $51.9m last year, and operating income of $58.35m last quarter.

Third-quarter SG&A expenses were $88m, or 17.8% of revenue. R&D expenses for the quarter were $18.1m. The company said that both SG&A and R&D expenses increased sequentially, and year over year, as a result of the addition of Miranda, which was acquired by Belden at the end of July 2012. After adjusting for the impact of foreign currency and Miranda, SG&A and R&D expenses combined were down more than $3m year over year.

The networking and connectivity segments, which include Miranda, contributed $161.8m of consolidated revenues, or 33%, up 3 percentage points versus last year.

Broadcast-related revenue in the quarter was $98.1m, or 20% of total revenue.  The company said that broadcast revenue was impacted by the timing of new product launches.

Belden CEO John Stroup said Miranda, which was part of Belden for two months of the quarter, was “off to a slow start, contributing approximately $32m of revenue and $0.08 of earnings per share during the quarter on an adjusted basis.”

This implies that Miranda’s revenue for the full third quarter was approximately $48m, essentially flat with the same period a year ago when Miranda reported a profit of C$13.2m on revenue of C$48.8m. (Miranda did not report results last quarter because their acquisition by Belden closed before the reporting data).

Stroup also said that the company anticipates Miranda to contribute $46m of revenue in the fourth quarter of 2012, implying an 8% decline versus Q4 of 2011 when Miranda reported revenue of $50.1m.

 

Guidance

Belden said it expects adjusted revenues for the fourth quarter 2012 to be $500m – $510m and adjusted income from continuing operations per diluted share to be $0.72 – $0.77.

For the full year 2012 Belden expects adjusted revenues to be $1.94Bn – $1.95Bn, down from last quarter when the company said it expected adjusted revenue, inclusive of Miranda, to be in the range of $1.95Bn to $1.97Bn.

The company maintained its full year EPS target of $3.00 – $3.05.

“Clearly, the weak demand environment presents challenges and the uncertainty affects our visibility. We believe this climate is likely to continue, therefore we’ll focus on driving improvements to the business through the implementation of our strategic plan. Despite these pressures, we remain committed to our full year EPS guidance,” said Stroup.

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Related Content:

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Belden Q3 2012 Earnings Call Presentation

Previous Belden Quarter: Belden Grows Earnings 22 Percent on Lower Revenue in Q2 2012, Closes Miranda Acquisition

Previous Year – Miranda: Miranda Reports Record Revenue and Profit in Q3 2011, Raises Margin Targets

Belden Sells Off Chinese CE Assets

Belden Closed Deal to Acquire Miranda

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