Posts Tagged ‘broadcast asset management’

Vizrt Q1 2013 Revenue Declines 15 Percent Due to Weakness in Europe

broadcast technology market research | Posted by Joe Zaller
May 09 2013

Vizrt reported that its revenue for the first quarter of 2013 was $27m, down 15% versus the same period a year ago, and down 11% versus the previous quarter.

The company said that market and economic conditions in Europe continue to be difficult, attributable mainly to falling domestic demand for goods and services and lower exports, and that this general weakness strongly affected the company’s sales in the EMEA region during the quarter.

Gross margins for the first quarter of 2013 were 65%, down from 67% last year and down from 70% last quarter.  In its earnings presentation, the company highlighted the fact that its gross have remained “relatively stable,” despite declining revenue.  Company management said this was due to a “shift in product mix towards higher margin broadcast graphics activities, and by a continued focus on cost control.”

Operating expenses for the quarter were $15.5m, down 9% versus last year due to cost control measures that the company has had in place for several quarters. The company said that OpEx was kept at a similar level to the 2012 average quarterly run rate, leading to continued profitability and cash generation from operating activities, though at lower levels. Specifically:

  • R&D expenses in the quarter were $5m (19% of revenue), down 2% versus the same period ago, and up 31% versus the previous quarter

 

  • Sales and marketing expenses in the quarter were $7.7m (29% of revenue), down 14% versus the same period a year ago, and down 1% versus the previous quarter

 

  • General and administrative expenses in the quarter were $2.8m (10% of revenue), down 8% versus the same period a year ago, and up 4% versus the previous quarter.

 

EBITDA was $3.1m for the quarter, down 44% from $5.6m last year, and down 65% versus the previous quarter.   The EBITDA margin for the quarter was 12% versus and EBITDA margin of 18% last year and 29% last quarter.

Net profit for the quarter was $1.18m, down 45% versus the same period a year ago, and up 28% versus the previous quarter.

 

Product Line Results for the Quarter:

  • Broadcast Graphics (BG) accounted for $21.9m during the quarter (81% of total revenue), a decline of 12% versus the same period ago, and a decline of 7% versus the previous quarter. The BG order backlog was $26.8m, up 7% versus last year, and up 6% versus the previous quarter. The company said that broadcast graphics performed in-line with its expectations.

 

  • Media Asset Management (MAM) revenue in the quarter was $4.2m (16% of total revenue), down 12% versus the same period a year ago, and down 7% versus last quarter. The company said that MAM was strongly affected by uncertainties in Europe. The MAM order backlog was $18,5m, down 12% versus the same period a year ago, and up 1% versus the previous quarter. Vizrt management said there has been a “further lengthening of investment decision-making cycles” for MAM deployments, especially for larger projects.  Vizrt said it has not lost MAM deals, instead projects have been postponed or are still under negotiation, and therefore still in the company’s MAM pipeline.

 

  • Online & Mobile (OLM) revenue in the quarter was $876,000 (3% of total revenue), down 44% versus last year and down 31% versus last quarter.  The OLM order backlog was $3.7m, down 6% versus last year, and up 5% versus the previous quarter. The company said that ONM performance “continues to be below expectations and, as announced on April 30, 2013, an additional impairment charge of MUSD 3.0 for 2012 was recorded, following which no goodwill or intangible assets remain on Vizrt’s balance sheet in relation to the Escenic acquisition.”

 

Geographic Performance for the Quarter:

Vizrt had a rough quarter in EMEA, traditionally its strongest market, but this weakness was offset partially by a strong performance from the Americas region.

  • Revenue from EMEA was $11.1m (41% of total revenue), down 38% versus the same period last year and down 20% versus last quarter

 

  • Americas revenue was $9.4m (35% of total revenue), up 32% versus last year, and up 18% versus last quarter.  The company said that “although certain macro-economic conditions in the U.S., such as reduced government spending, have had a somewhat dampening effect on GDP development, overall the region posted solid economic growth.”

 

  • APAC revenue was $6.5 (24% of total revenue), down 3% versus last year, and down 23% versus last quarter

 

The company ended the quarter with 582 employees, up from 575 last quarter, and $77.86m in cash, down 1% versus last quarter.

 

Outlook

The company said that despite economic uncertainties, it continues to see a number of positives in the market. Though management expects the economic uncertainties to continue affecting the business climate into 2013, it still believes that the second half of the year will start to show an improvement in the global economy in general, and bring a return to growth for Vizrt.  Focus for 2013 will remain on cost control, without compromising the company’s ability to innovate and support our strategic growth ambitions.

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Related Content:

Press Release: Vizrt Reports Q1 2013 Results

Vizrt: Q1 2013 Earnings Call Presentation

Broadcast Vendor M&A: Vizrt Buys Remaining Shares of LiberoVision

Previous Quarter: Vizrt Posts Lower Revenue, but Higher Margins and Profit in Q4 and Full Year 2012

Previous Year: Vizrt Revenue Increases 13% in Q1 2012 Driven by Strong Performance in Graphics and MAM

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Dalet Issues Final 2012 Results, Revenue Up 10 Percent

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

MAM specialist Dalet announced that its board of directors have approved the company’s consolidated financial statements for the 2012 fiscal year.

Consolidated revenue for the year ended December 31, 2012 was €34.4m m, compared to €31.3 m (+10%) in 2011.

Gross margin for the year was €29.7m, compared to €25.2m in 2011. The gross margin rate for 2012 increased from 81% in 2011 to 86%, due to the strong shift away from the Italian subsidiary’s traditional hardware integration business in its domestic market.

The operating profit before non-recurring items for the year was €1.7m, compared to €1.3m in 2011 (+29%).
After taking into account a depreciation of the goodwill of the Italian subsidiary for €0.2 m, the operating profit was €1.5m.
Consolidated net profit for 2012 was €1.2m, compared to €1.3m in 2011.

The company ended the year with €6.5m in cash, up from €5.1m at the end of 2011, and long term debt increased from €1.1m to €1.6m.

Dalet CEO David Lasry said “In 2012 we continued a steady growth trend in revenue and profitability which has confirmed our strategy to provide MAM-driven solution to key market segments. The growth in North America has been significant, especially as related to the sports segment where we are achieving a recognized presence with several successful project deployments and new contracts.”

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Related Content:

Dalet Press Release: Financial Results for 2012

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

Previous Year: Dalet Revenue Jumps 22 Percent in 2011, Reports Strong Backlog for 2012

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Vizrt Posts Lower Revenue, but Higher Margins and Profit in Q4 and Full Year 2012

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 21 2013

Broadcast graphics and media asset management (MAM) provider Vizrt reported that its revenue for the fourth quarter of 2012 was $30.3m, down 9% versus the same period a year ago, and up 2% versus the previous quarter. 

The company attributed the revenue decline to weakness in the European market.

On an operating basis, the company posted a profit of $5.6m, down 22% from last year, and up 30% versus last quarter.

Despite the lower top line number, the company’s EBITDA for the fourth quarter of 2012 was $8.9m, flat with last year and up 51% versus last quarter.   The translates to an EBITDA margin for the quarter of 29% versus 27% last year and 20% last year.

Gross margins for the fourth quarter of 2012 were 70%, up from 69% last year, and 66% last quarter.

Operating expenses for the quarter were $14.28m, down 11% versus last year, and down 6% versus last quarter.

R&D expenses in the quarter were $3.84m, down 19% versus last year, and down 14% versus the previous quarter.

Sales and marketing expenses in the quarter were $7.76m, down 3% versus last year, and down 4% versus the previous quarter.

G&A expenses in the quarter were $2.68m, down 17% versus last year, and down 1% versus the previous quarter.

The order backlog at the end of the quarter was $47.1m, up 2% versus the same period a year ago, and down 1% versus last quarter.

The company ended the fourth quarter of 2012 with 575 employees, compared to 585 last quarter, and 575 last year The company said that the year-over-year decrease in headcount is due to the its strict recruitment policy in 2012, which limited both replacements and new recruitments.

At the end of the quarter, Vizrt had no debt and $78.9m in cash, up from $73.1m last year, and $75.4m last quarter.

 

Product Line Results for the Quarter:

  • Broadcast Graphics (BG) revenue in the quarter was $23.6m (78% of total revenue), down 12% versus last year and up 4% versus last quarter.  The BG order backlog was $25.3m, up 1% versus last year, and up 2% versus last quarter.

 

  • Media Asset Management (MAM) revenue in the quarter was $5.4m (18% of total revenue), up 12% versus the same period a year ago, and down 7% versus last quarter. The MAM order backlog was $18.3, up 9% versus the same period a year ago, and down 3% versus last quarter.

 

  • Online & Mobile (OLM) revenue in the quarter was $1.3m (4% of total revenue), down 29% versus last year and up 16% versus last quarter.  The OLM order backlog was $3.5m, down 24% versus last year, and down 10% versus last quarter.

 

Geographic Performance for the Quarter:

  • Revenue from EMEA was $13.9m (46% of total revenue), down 25% versus last year and up 2% versus last quarter.

 

  • Americas revenue was $8m (26% of total revenue), up 3% versus last year, and flat versus last quarter

 

  • APAC revenue was $8.4 (28% of total revenue), up 19% versus last year, and up 5% versus last quarter

 

Full Year Results:

Revenue for the full year 2012 was $121.8m, a decline of 3% versus 2012, which was a record revenue year for the company.

Gross margins for the year were 67%, up from 66% in 201, and 62% in 2010.

EBITDA for 2012 was $25.8m, up from $24.9m in 2011. This translates to an EBITDA margin of 21%, up form 20% in 2011.

Full year 2012 R&D expenses were $18.08m, down 6% versus last year. R&D as a percentage of revenue was 15%, the same as in both 2012 and 2011. Sales and marketing expenses in 2012 were $33.36m, down 1% versus 2012. Sales and marketing expenses in 2012 were 27% of revenue. G&A expenses for the year were $11.18m, down 2% versus last year.  This equates to 9% of revenue.

EBITDA for the full year 2012 was $25.8m 24.9m (21%), an increase from $24.9m (20%) in 2011, and up from $16.1m in 2010 (15%).

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Product Line Results for the Full Year:

  • Broadcast Graphics revenues for 2012 were $94.3m or 77% of total revenues.  2012 revenue from broadcast graphics was down 3% versus 2011, but remained constant as a percentage of revenue.
  • MAM revenues for 2011 were $21.9m, up 7% versus 2011.  MAM sales accounted for 18% of total revenue in 2012, up from 15% of revenue in 2011.
  • Online & mobile revenue for 2011 was $5.7m, down 32% versus 2011. This equates to 5% of total revenues, down from 8% of revenue in 2011.

 

Geographic Performance for the Full Year:

The company said that revenue in both the Americas and APAC regions increased 9% versus 2011.  However, 2012 revenue from EMEA declined 13% versus the previous year.

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Business Outlook:

At the beginning of 2012, the company reiterated earlier guidance of 13% revenue growth and improving margins based on a strengthening outlook. This changed in July 2012, when the company issued a profit warning.

Martin Burkhalter, Vizrt CEO, commented on the results: “Despite tough market conditions in Europe in 2012, we were able to conclude the year with nearly flat revenues compared to last year, as well as improving our margins. The decline in revenues was due to the continued market weakness in Europe, where macro-economic related uncertainties resulted in substantially longer investment decision cycles, especially with regards to larger projects. Although these effects weigh on the global business environment, we managed to increase our sales in APAC and The Americas.”

“Our margin improvement is the direct result of a strong focus on cost control, as well as an improvement of our gross margins. Despite our focus on cost control, we have not compromised our capabilities to implement our strategic objectives and further development of the company, maintaining our innovative edge, and offering prime products and services enabling our clients in achieving high quality and workflow efficient content distribution and channel differentiation.”

“As to our product lines, BG has been relatively stable. Notwithstanding the difficult market conditions we recorded further growth in MAM. We feel that broadcasters and other content owners are recognizing the importance of a file based workflow and the value of extending and expanding the economic life and usability of media assets. We expect broadcasters to continue to invest in this area and we therefore see an even stronger upside for this product line once there is a more sustainable global economic recovery. Performance of our Online business was below expectations. This product line is strongly affected by the uncertainties in the macroeconomic environment.”

“We see ourselves returning to our earlier communicated 13% target revenue growth, mid- to long-term. For 2013 we anticipate growth, though in the mid to high single digit range. Growth will come predominantly from The Americas and APAC, with Europe expected to show a modest recovery in the second half of the year. For 2013 we will maintain our focus on cost control, though as said, without compromising the strength of our organization, and we will continue to invest in expanding our product and market leadership position.”

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Related Content:

Press Release: Vizrt Reports Q4 and 2012 Results

Vizrt Q4 and Full Year 2012 Analyst Presentation

Previous Quarter: Vizrt Grows Operating Margin Despite Lower Revenue in Q3 2012

Previous Year: Vizrt Reports Record Revenue in 2011, Targets 13 Percent Growth in 2012

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

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 14 2013

Dalet, a provider of media asset management solutions, reported that its consolidated 2012 revenue was €34.3m, an increase of 10% versus 2011.

Revenue for the second half of the year was €19.2m, up 27% from €15.1m in the first half of 2012.

Q4 2012 revenue was €10.1m, down 4% from the same period a year ago.

Gross margins for the fourth quarter of 2012 were 92%, up 3% versus the same period a year ago.

Goss margin for the full year 2012 were 86%, up from 80% in 2011, and up from 73% in 2010. The company attributed the margin expansion to a favorable sales mix during the year.

 

On a segment basis:

 

  • Revenue from media asset management grew strongly and represented 44% of total revenues

 

  • TV Newsroom systems represented 25% of total revenue

 

  • Sport solutions grew to 10% of total revenue

 

  • Revenue from Radio solutions was stable at 15% of total

 

  • Integration projects represented 6% of total revenues

 

 

Dalet said it had more than €6m cash on hand at the end of 2012, and that its order backlog for 2013 stands currently at €22m, compared to a backlog of €21m at the same time period last year.

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Related Content:

Press Release: Dalet Announces 2012 Revenue of €34.3m

Dalet Revenue Increases 4 Percent in Q2 2012

Previous Year: Dalet Revenue Jumps 22 Percent in 2011, Reports Strong Backlog for 2012

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Vizrt Grows Operating Margin Despite Lower Revenue in Q3 2012

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Nov 18 2012

Broadcast graphics and media asset management (MAM) provider Vizrt reported that its revenue for the third quarter of 2012 was $29.6m, down 7% versus the same period a year ago, and a decline of 2% versus the previous quarter.

Net income for the third quarter of 2012 was $3m, compared to net income of $3.3m last year, and a net loss of $4.4m last quarter, when the company took a $7.8m non-cash impairment charge relating to the 1998 purchase of Escenic.

On an operating basis, the company posted a profit of $4.3m, up 14% from last year, and up 12% versus last quarter.

EBITDA for the third quarter of 2012 was $5.9m, up 5% versus last year and up 8% versus last quarter.   The EBITDA margin for the quarter was 20% versus 18% last year and 18% last year.

Gross margins for the third quarter of 2012 were 66%, flat with last year last quarter.

Operating expenses for the quarter were $15.265m, down 12% versus last year, and down 5% versus last quarter.

The order backlog at the end of the quarter was $47.8m, down 2% versus the same period a year ago, and down 2% versus last quarter.

The company ended the third quarter of 2012 with 575 employees, compared to 582 last quarter, and 591 last year, The company said the headcount reduction is primarily the result of strict recruitment policy.

At the end of the quarter, Vizrt had no debt and $75.4m in cash, up from $73.1m last year, and $69.6m last quarter.

 

Product Line Results for the Quarter:

  • Broadcast Graphics (BG) revenue in the quarter was $22.7m (77% of total revenue), down 12% versus last year and down 2% versus last quarter.  The BG order backlog was $24.9m, up 1% versus last year, and down 6% versus last quarter.

 

  • Media Asset Management (MAM) revenue in the quarter was $5.8m (20% of total revenue), up 35% versus the same period a year ago, and up 8% versus last quarter. The MAM order backlog was $18.9, down 4% versus the same period a year ago, and up 5% versus last quarter.

 

  • Online & Mobile (OLM) revenue in the quarter was $1.1m (4% of total revenue), down 34% versus last year and down 36% versus last quarter.  The OLM order backlog was $4m, down 6% versus last year, and up flat with versus last quarter.

 

Geographic Performance for the Quarter:

The company said that “the economic slowdown in most Euro zone countries continued to impact our results. The Americas and APAC regions, however, recorded growth.”  Specifically:

  • Revenue from EMEA was $13.6m (46% of total revenue), down 23% versus last year and down 9% versus last quarter.

 

  • Americas revenue was $8m (27% of total revenue), up 19% versus last year, and up 9% versus last quarter

 

  • APAC revenue was $8 (27% of total revenue), up 8% versus last year, and up 1% versus last quarter

 

Year-to-date Results

Vizrt’s revenue for the first nine months of 2012 was $91.5m, essentially flat versus the first nine months of 2011.

Net income for the first nine months of 2012 was $800,000, down significantly from net income of $10m for the first nine months of 2011. Year-to-date net income was impacted by a Q2 2012  non-cash impairment charge of $7.8m relating to the 1998 purchase of Escenic.

EBITDA for the first nine months of 2012 was $16.9m, up 6% versus the same period last year.  The year-to-date EBITDA margin was 18%, compared to 17% last year.

Gross margins for the nine months of the year were 66%, up from 65% last year.

Operating expenses for the first nine months of 2012 were $48.33, flat with last year.

 

Business Outlook:

At the beginning of 2012, the company reiterated earlier guidance of 13% revenue growth and improving margins based on a strengthening outlook. This changed in July 2012, when the company issued a profit warning.

Martin Burkhalter, Vizrt CEO, commented on the results: “As discussed at the time of our Q2 release, we continue to experience challenging market conditions.  The uncertainties in the general economic environment, most notably in Europe, have led to a lengthening of investment decision making cycles.  Against this background, we recorded revenues nearly equal to last year’s first nine months, and down 7% compared to Q3 of last year.  Furthermore, we have managed to improve our margins, with EBITDA and EBIT coming in at 20% and 15%, of revenues respectively, for the quarter.”

“Product wise, performance this past quarter was backed by a strong showing in MAM, especially in APAC, whereas BG slightly increased Y-o-Y.  Revenues for ONL suffered, down significantly, which is to be expected as media houses are less likely to make what they would regard as non-core investments in times of uncertainty. For the regions, the main weakness, as expected, was in Europe, while the U.S. posted growth both Year on Year and Quarter on Quarter.”

“Despite the experienced softness in the market, we managed to increase our cash position to over $75m, a nearly $6m increase for the quarter.  We believe these figures show the depth and strength of our offering.”

“Another evidence to the strength of our offering is that Vizrt was once again the vendor of choice for broadcasters looking to capture audiences in relation to the U.S. presidential elections. In the United States alone, six national networks and more than 150 local channels covered the election with Vizrt tools – more than ever before.”

“Going forward, we expect that the general economic environment will continue to influence market conditions and prolong decision making cycles, especially in Europe.  However, our healthy backlog together with our strong product offering, give us the confidence that we should be capable of delivering a solid result for the full year, despite the challenging market conditions”.

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Related Content:

Press Release: Vizrt Reports 9 Months and Q3 2012 Results

Previous Quarter: Vizrt Revenue Declines 6 Percent in Q2 2012 Due to Weakness in EMEA

Previous Year: Vizrt Reports Q3 2011 Results

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Evertz Beats Expectations in Q1 Fiscal 2013 as Profits Jump 41 Percent

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Sep 14 2012

Evertz announced that its revenue for the first quarter of its 2013 fiscal year was C$96m, an increase of 28% versus the same period a year ago, and up 26% versus the previous quarter.

Net earnings for the quarter were C$24.8m (C$0.34 per share), up 41% versus the same quarter last year, and up 87% versus the previous quarter.

The results for the quarter were well above the expectations of equity analysts, who on average were looking for revenue of C$84.9m and EPS of C$0.25.

Revenue in the US/Canada region was C$59.4, or 62% of total revenue, up 31% versus the same period a year ago, and up 62% versus the previous quarter.

International revenue was C$36.6m, an increase of 23% versus the same period last year, and down 8% versus the previous quarter. International sales were 38% of total revenue, down from 40% last year.

Evertz EVP Brian Campbell attributed the revenue growth to the ongoing transition to HD, a growing demand globally for high quality video, traction in the company’s workflow solutions from its purchase of Pharos, and several large projects that were recognized during the quarter.

The company had 76 orders in the quarter that were greater than C$200,000, and the top ten customers provided for 41% of revenue (C$39.4m), so Evertz clearly closed some big deals close during the quarter.

Significantly, one customer accounted for 15% of total revenue, or C$14.4m, during the quarter. C$14.4m is a huge order for any broadcast vendor, and this means that the company’s revenue during the quarter was significantly more concentrated than in the past.  For comparison, during the previous quarter no customer accounted for more than 5% of total revenue, or C$3.82m. In response to questions about the “15% customer” from Canacord Genuity analyst Robert Young, Brian Campbell pointed out that the 15% number relates to all product shipped to a single customer during the quarter, not necessarily a single order for one project.  Campbell also said that although this order was indeed large, the company has had large orders in the past.  What appears to make this order unusual is that it appears to have happened during a single quarter as opposed to delivery over multiple quarters, which Campbell said is more common.  Campbell declined to state who the customer was, or its geographic location, but given the rise in US/Canada sales, and the q/q decline in international revenue, it’s easy to speculate.

The strong results follow on from the previous quarter when Evertz announced that its order backlog had reached a record C$57m, and said that most of this backlog would ship during the current quarter. This appears to have happened, as the company’s order backlog at the end of the first quarter of its 2013 fiscal year was C$40m, or 30% lower than three months ago.

Gross margins in the quarter were 58%, up from 57% last year and up from 56% last quarter.  The company attributed its margin expansion in the quarter to higher revenue and traction in new product areas. Company CFO Anthony Gridley said that gross margins were within the company’s targeted range of 56% to 62%, and that the company is “comfortable” with that range.  Campbell added that this margin range allows Evertz to make money while remaining price-competitive in the market.

R&D expenses in the quarter were C$11.8m, an increase of 14% versus the same period last year, and down 8% versus the previous quarter when the company accelerated the purchase of materials and prototypes in order to take advantage of government tax incentives before the end of its fiscal year.  Gridley said the company is constantly adding R&D staff, so any reported decline in R&D spending is typically the result of an increase in prototypes in previous quarters.  Campbell said that the company will continue to invest in R&D as the company sees its engineering strength as a key market differentiator, and Evertz intends to “continue to extend this lead.”

SG&A expenses for the quarter were C$12.4m, an increase of 19% versus last year, and essentially flat with the previous quarter. Selling and administrative expenses represented approximately 13% of revenue in the quarter versus 14% of revenue during the same period last year, and 16% of revenue last quarter.

The company’s purchase order backlog at the end of August 2012 was in excess of C$40m, up 90% versus the same period last year, and down 30% versus the previous quarter.

Commenting on the recent IBC trade show, Campbell said that Evertz saw increasing awareness of some of its recent large R&D investments.  He specifically cited video transport, IT-based playout, asset management, and compressed domain products as areas where the company is seeing interest.

When asked by an analyst about the pick-up in broadcast technology M&A activity such as the recent purchase of Miranda by Belden, and the decision by Harris to divest its broadcast business, Campbell responded by saying that Grass Valley should be added to this list because it is also has been going through changes since being acquired by Francisco Partners.  Campbell implied that the distractions facing competitors was a net positive for Evertz.  “Customers look to Evertz as a very stable entity with very little disruption, so we’ve been able to capture market share” he said.

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Related Content:

Press Release: Evertz Technologies Reports Results for the First Quarter Ended July 31, 2012

Previous Quarter: Evertz Q4 FY 2012 Revenue Rises 11 Percent, Order Backlog at Record Level

Previous Year: Evertz Beats Expectations in Q1 2012 as Domestic Revenue Increases Six Percent

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Dalet Revenue Increases 4 Percent in Q2 2012

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

Dalet, a provider of media asset management solutions, reported that its consolidated revenue for the second quarter of 2012 was €7.5m, up 4% versus the same period a year ago, and down 3% versus the previous quarter.

Gross margins for the quarter was 86%, up from 78% last year, and up from 81% last quarter.  The company attributed the year-over-year margin expansion to an improvement in sales mix.

For the first six months of 2012, the company’s consolidated revenue was €15.1m, up 5% versus the first half of 2011.

Gross margins for the first half of 2012 were €12.6m, or 83%, up from 74% in H1 2011.

Dalet also reported that it currently expects to invoice €16m from its order backlog during the second half 2012.

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Related Content:

Press Release: Dalet: Revenues for First Semester 2012: €15.1 Million, +5%

Previous Quarter: Dalet Revenue Increases Seven Percent in Q1 2012

Previous Year: Dalet 1H 2011 Revenue Jumps 13 Percent on Strong European Sales

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Analyzing Where is Money Being Spent in the Broadcast Industry – The 2012 BBS Broadcast Industry Global Project Index

broadcast industry technology trends, broadcast industry trends, broadcast technology market research, technology trends | Posted by Joe Zaller
Aug 08 2012

This is the third in a series of articles about some of the findings from the 2012 Big Broadcast Survey (BBS), a global study of broadcast industry trends, technology purchasing plans, and benchmarking of broadcast technology vendor brands. Nearly 10,000 broadcast professionals in 100+ countries took part in the 2012 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry.

 

In a previous post, I discussed The 2012 BBS Broadcast Industry Global Trend Index, which shows which industry trends are most commercially important to the global sample of 2012 BBS respondents. 

Like any list of trends, this list includes a mix of current and future commercial priorities, some of which are being done today on a wide scale, some of which are in a trial phase, and others which have not yet been widely implemented.

By a wide margin, the top trend in the 2012 Trend Index is “multi-platform content delivery.”  Other important trends include the transition to file-based workflows, the transition to HDTV operations, and IP networking and content delivery.

Tracking broadcast industry trends and their evolution is useful because this shows what customers are discussing and thinking about implementing in the future.  However, a high ranking in an industry trend Index does not necessarily mean that this is where customers are spending their technology budgets in 2012 and 2013. 

Thus, it’s important to make a clear distinction between what broadcast customers are thinking and talking about in the future (industry trends), and where they are spending their technology budgets today.

Technology spending in the broadcast industry tends to be project-based. Projects might include international elections and sporting championships, to the long-term, planned capital upgrades of broadcast infrastructure and facilities.  Thus, an understanding of the major projects being implemented by broadcaster professionals around the world provides useful insight into the capital expenditure plans of the industry.

Projects represent where broadcast technology budgets are being spent today, not just what people are talking about doing in the future. 

In order to better understand this dynamic, were presented broadcast professionals with a list of major projects and asked them to indicate which ones they are currently implementing or are planning / budgeting to implement within the next year.  Their responses were then used to create the 2012 BBS Broadcast Industry Global Project Index, which is shown below. 

 

 

When compared to The 2012 BBS Broadcast Industry Global Trend Index, which can be found here, The 2012 BBS Broadcast Industry Global Project Index illustrates where broadcast technology budgets are being spent today.

Our research shows that the difference between what people are thinking and talking about (trends), and where they are planning to spend their budgets (projects) can be quite dramatic.

For example although “multi-platform content delivery” dominated the 2012 BBS Broadcast Industry Global Trend Index, the corresponding project “distribute and monetize content on multiple distribution platforms,” ranked #9 out of 17 in the 2012 BBS Broadcast Industry Global Project Index.

In terms of where money is being spent in the broadcast industry today, more broadcast technology buyers cited “upgrading infrastructure for HD/ 3Gbps operations” than any other project.  This project correlates directly with “transition to HDTV operations,” which was ranked #3 in the 2012 BBS Broadcast Industry Global Trend Index.

Although the transition to HDTV operations is certainly not new, it remains one of the key drivers of broadcast technology spending in 2012 and 2013.  Even as a small number of broadcasters announce that they are close to completing their decade-long transition to HDTV, many broadcasters are still in the early stages of the move to HD.  This is especially true in emerging economies where there is still a great deal of both standard definition and analog infrastructure. 

On a global basis, the transition to HDTV has consistently been the top driver of broadcast technology spending for the past several years — it was also the top project last year in the 2011 BBS Broadcast Industry Global Project Index – and it appears that this will be the case for the foreseeable future.

Significantly, the move to HDTV is represented in multiple places in the Project Index.  The projects ranked #3, #5, #7, and #10 – upgrading transmission & distribution capabilities; building new studios / OB vans; launching new channels; and upgrading newsroom operations – are also related to the transition to HDTV operations, as these transmission upgrades, new studios, new channels, and upgraded news environments will almost certainly be at least HD capable, if not fully HD.

Coming in as the #2 ranked project on this Index is “Install or enhance workflow / asset management system.”  It also achieved the #2 rank in 2011, but was much further behind the transition to HDTV in terms of overall importance to broadcast customers.

Although asset management is a relatively small and specialized market, it has become increasingly important over the past several years as broadcast customers move to file-based workflows and plan for multi-platform content delivery.  The take-away here appears to be that once a broadcaster has made the transition to file-based workflows, the strategic emphasis shifts to finding, deploying, and monetizing content in the most efficient way possible.  Thus asset and workflow management are likely to become increasingly important as customers move to business models focused on multi-platform content delivery, and driven by sophisticated IT-based systems.

The rest of the list offers a mixed picture of project activity across the world, and includes everything from upgrading audio and newsrooms to multi-platform distribution being chosen in large numbers. 

As mentioned earlier, multi-platform content delivery ranked #9 in the 2012 BBS Broadcast Industry Global Project Index.  It also was ranked #9 in 2011. Despite the importance to organizations of monetizing content on multiple distribution platforms, it appears many broadcast professionals have not solidified their business plans in this area.  This likely means that there will be significant opportunities in the future for broadcast technology vendors who offer a suite of products for multi-platform content delivery.  The current excitement surrounding OTT video and connected TV is evidence of this, but this is still a small proportion of the money being spent on broadcasting technology in 2012.

Interestingly, despite the fact that they may have the potential to deliver increased efficiencies and new revenue streams, there are several major projects that appear towards the bottom of this list. The two most obvious instances are the low ranking of “consolidate operations in regional hubs (centralcasting), and “outsourced operations (playout),” which are the bottom two projects on this list. This is because although these are high value projects, they will be undertaken by a relatively small number of organizations — i.e. large broadcasters.  This highlights that the 2012 BBS Broadcast Industry Global Project Index is a graphic representation of the number of all planned projects across all respondents, regardless of organization type, size, or location.  It does not measure size, value, or relative commercial importance of planned projects.  Please keep this in mind when reading this information and interpreting these findings.

 

All data in this article measures the responses of all non-vendor participants in the 2012 BBS, regardless of organization type, organization size, job title or geographic location. Responses of individual organization types or geographic locations may be very different. Granular analysis of these results is available as part of the full 2012 BBS Global Market Report. For more information about this report, please contact Devoncroft Partners.

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Related Content:

The 2012 Big Broadcast Survey – Information and available reports

The 2011 BBS Broadcast Industry Global Trend Index

Tracking the Evolution of Broadcast Industry Trends 2009 – 2012

Where is Money Being Spent in the Broadcast Industry in 2011?  The 2011 BBS Broadcast Industry Global Project Index.   

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Vizrt Warns of Lower Revenue Expectations for 2012 Due to Weakness in EMEA and Americas

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Jul 03 2012

Broadcast graphics and media asset management specialist Vizrt said its revenue for the full year 2012 will be less than previously projected, due to lower than anticipated results in the past three months, especially in EMEA and the Americas.

The company attributed the recent sales decline to market conditions in the Americas and EMEA that “seem to have deteriorated as a result of the continued economic uncertainties.” The company said that as a result of greater economic uncertainty, customers in these territories are making purchasing decisions more slowly and in some case are postponing of larger projects.

Vizrt is now estimating revenues for the second quarter 2012 to be in the range of $28m to $30m, a decline of 7% – 13% versus the $32.1m achieved in Q2 2011. As a result, the company also expects EBITDA for Q2 and the full year 2012 to be impacted.

At the time of the company’s most recent earnings release in May of 2012, Vizrt CEO Martin Burkhalter issued a cautiously optimistic statement about the company’s outlook for 2012. “We have witnessed no material change in the business climate other than that we sense that businesses have gotten used to and seem less affected by uncertainty, which has been the overriding sentiment these past few quarters, and as a result are less retracted in their investment outlook. Accordingly our level of comfort regarding the short to mid-term outlook has strengthened. Based on the general climate, several large upcoming events, the relevance of our product offering and the strength of our organization to convert opportunities into actual sales, we reiterate our earlier guidance of 13% revenue growth and improving margins.”

Today the company revised this guidance saying “Unless market conditions will improve during the rest of the year, the company believes that the earlier communicated revenue growth target of 13% for 2012 will have to be adjusted.”

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Related Content:

Press release: Vizrt Provides Outlook Update

Vizrt Revenue Increases 13% in Q1 2012 Driven by Strong Performance in Graphics and MAM

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Dalet Revenue Increases Seven Percent in Q1 2012

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
May 17 2012

Dalet, a provider of media asset management solutions, reported that its consolidated revenue for the first quarter of 2012 was €7.7m, an increase of 7% versus the same period a year ago, and down 23% versus the previous quarter.

Gross margin for the quarter was 81%, up from 69% last year, and down from 82% last quarter.  The company attributed the year-over-year margin expansion to an improvement in sales mix.

Licensing revenue in the quarter was €2.4m (31% of sales), up 85% versus last year.  Revenue from professional services in the quarter was €2.2m (29% of sales), up 15% versus last year.  Recurring support revenue was €1.54m (20% of sales), up 34% versus last year. Resale of hardware contributed €1.77m (23% of sales), down 33% versus the same period a year ago.

Dalet also reported that it currently expects to invoice €18m from its order backlog during the full year 2012.

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Related Content:

Press Release: Dalet: Revenues for First Quarter 2012: €7.7 Million, +7% – Gross Margin up by 25%

Previous Quarter: Dalet Revenue Jumps 22 Percent in 2011, Reports Strong Backlog for 2012

Previous Year: Dalet First Quarter 2011 Revenue Jumps 118 Percent

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