Posts Tagged ‘broadcast asset management’

Dalet Revenue Grows 3 Percent in Q1 2014

Broadcast technology vendor financials, Broadcast Vendor M&A, Quarterly Results | Posted by Joe Zaller
May 06 2014

MAM and newsroom specialist Dalet reported that its consolidated revenue for the first quarter of 2014 was €7.6m, up 3% versus the same period a year ago, and down 25.5% versus the previous quarter.

On a geographic basis, Europe represented 55% of revenues in the quarter, the Americas represented 26%, Asia-Pacific was 14% and the Middle-East Africa region accounted for 5% of revenue.

Europe accounted for 48% of revenue, while MEA and Asia-Pacific accounted for 8% and 4% respectively.

Gross margins for the first quarter of 2014 were 79%, down from 85.1% last year. The company attributed the lower gross margins to a less favorable sales mix during the quarter.

The company did not disclose any other financial metrics, including profitability.

These results figures do not include any financials related to AmberFin, which Dalet acquired at the beginning of April 2014. Dalet says that it will begin consolidating AmberFin revenue into its accounts starting in Q2 2014.

AmberFin revenues for fiscal year ended 31/3/2013 were £4.6 million, with an operating loss of £1.1 million.

.

.

Related Content:

Press Release: Dalet Announces Revenues for First Quarter 2014

.

.

© Devoncroft Partners 2009 – 2014. All Rights Reserved.

.

.

 

Dalet Revenue Grows 7 Percent in 2013 on Strong Sales of Newsroom Solutions

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 14 2014

Dalet, a provider of broadcast newsroom computer systems, asset management, and radio automation solutions, reported that its revenue for 2013 was 2012 revenue was €36.7m, an increase of 7% versus 2012.

Fourth quarter revenue was €12.3m, up 20% versus the same period a year ago.  The strong Q4 made the difference for Dalet, whose revenue had been flat for the first three quarters of 2013 when compared to the same period last year.

Goss margin for the full year 2013 were 87%, up from 86% in 2012, and up from 80% in 2011. The company attributed the margin expansion to a favorable sales mix during the year.

On a geographic basis:

  • Revenue in Europe was €17.6m in 2013, down 6% versus the full year 2012.  Nevertheless, Europe represented 48% of total revenue for the year.

 

  • Revenues grew 11% in the Americas to €12.8m, or 35% of total revenue for the year.

 

  • 2013 revenue from APAC and MEA grew 43% and 64%, respectively, and accounted for 9% and 7% of total revenue, respectively.

 

 

On a segment basis:

  • Asset management revenue was €13.6m, down 11.7% versus the previous year.  Asset management revenue represented 37.1% of total revenue in 2013, compared to 44.9% of total revenue in 2012

 

  • TV Newsroom systems was €12.9m, up 48.3% versus the previous year. TV newsroom systems represented 35.1% of total revenue, compared to 25.4% of total revenue in 2012

 

  • Sport solutions revenue was €3.8m, up 8.6% versus the previous year. Sports solutions revenue was 10% of total revenue in both 2013 and 2012

 

  • Radio solutions revenue was €5m, flat with 2012. Radio solutions represented 13.6% of total revenue, compared to 14.6% of total revenue in 2012

 

  • Integration revenue was €1.4m, down 26.3% versus the previous year.  Integration revenue represented 3.8% of total revenue, compared to 5.5% of total revenue in 2012

 

Dalet said its “financial position remains robust and the operating profit before non-recurring items for the year should be similar to the 2012 results,” but did not provide any further details.  The company had approximately €6m cash on hand at the end of 2012, but did not disclose its cash position at the end of 2013.  It also did not disclose its order backlog, which stood at €22m at the beginning of 2013.

.

.

Related Content:

Press Release: Dalet Revenues 2013: €36.7 Million, +7%

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

.

.

© Devoncroft Partners 2009-2014. All Rights Reserved.

.

.

 

 

Despite Continued Weakness in Europe, Vizrt Reports Growth and Improved Margins in Q2 2013

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Aug 13 2013

Vizrt reported that its revenue for the first quarter of 2013 was $31.7m, up 5% versus the same period a year ago, and up 17% versus the previous quarter.

Although the company says it continues to see softness in the European market, it had strong performances in both the Americas and APAC during the quarter.

“Considering the continued softness we experienced in our largest market, we are very pleased to have returned to growth,” said Vizrt CEO Martin Burkhalter. “Growth was driven by a strong performance for both the Americas and APAC. Growth was offset partially by continued weakness in Europe, which saw revenues decline by 9% compared to Q2 2012.

Gross margins for the second quarter of 2013 were 67%, up from 66% last year, and up from 65% last quarter.  In its earnings presentation, the company said it took a charge of $300,000 in the quarter for the amortization of intangible assets related to acquisitions.  Excluding these charges, gross margin for the quarter would have been 68%.

Vizrt management said it was able to improve its margins, despite challenging market conditions, because of the company’s “premium offering which helps customers realize their strategic objectives and add value by improving workflow efficiencies.”

Operating expenses for the quarter were $16.17m, up 1% versus last year, and up 4% versus the previous quarter. The company said it is continuing to focus on cost control, even as it increases its top

  • R&D expenses in the quarter were $4.8m (15% of revenue), up 3% versus the same period ago, and down 4% versus the previous quarter

 

  • Sales and marketing expenses in the quarter were $8.57m (27% of revenue), flat with the previous quarter and up 11% versus the previous quarter

 

  • General and administrative expenses in the quarter were $2.8m (9% of revenue), up 3% versus the same period a year ago, and up 1% versus the previous quarter.

 

EBITDA was $6.1m for the quarter, up 12 from $5.44m last year, and up 95% from $3.1m in the previous quarter.   The EBITDA margin for the quarter was 19% versus an EBITDA margin of 18% last year and 12% last quarter.

Net profit for the quarter was $3.6m, compared to a net loss of $3.75m last year, and up 204% versus last quarter’s net profit of $1.18m.

 

Product Line Results for the Quarter:

  • Broadcast Graphics (BG) accounted for $24.9m during the quarter (78% of total revenue versus 81% last quarter), an increase of 8% versus the same period ago, and an increase of 14% versus the previous quarter. The BG order backlog was $28.8m, up 9% versus last year, and up 7% versus the previous quarter.

 

  • Media Asset Management (MAM) revenue in the quarter was $5.66m (18% of total revenue versus 16% last quarter), up 5% versus the same period a year ago, and up 35% versus last quarter.   The MAM order backlog was $17.8m, down 1% versus last year, and down 1% versus last quarter

 

  • Online & Mobile (OLM) revenue in the quarter was $1.16m (3% of total revenue), down 32% versus last year, and up 33% versus last quarter.  The OLM order backlog was $3.7m, down 6% versus last year, and up 5% versus the previous quarter.

 

 

Geographic Performance for the Quarter:

Vizrt said it continued to experience weakness in the European market during the quarter, but that the Americas and APAC did well.

  • Revenue from EMEA was $13.6m (43% of total revenue versus 41% last quarter), down 9% versus the same period last year and up 22% versus last quarter

 

  • Americas revenue was $9.2m (29% of total revenue versus 35% last quarter), up 26% versus last year, and down 1% versus last quarter.

 

  • APAC revenue was $8.95 (28% of total revenue versus 24% last quarter), up 13% versus last year, and up 17% versus last quarter

 

The company ended the quarter with 590 employees, up from 582 last quarter, and $74.2m in cash, down 6% versus last quarter.

 

“We believe that the strategic nature of our product offering, in helping customers achieve financial and strategic objectives, puts our products in the “must have” premium category, which has allowed us to defend and grow margins,” said Burkhalter. “Both the 8% solid growth in BG and the 5% growth in MAM compared to Q2 2012 were driven by our global presence, and our ability to react to local economic trends, as witnessed in the Americas and APAC. The media landscape is very dynamic, and broadcasters need to invest in order to protect their competitive position.”

 

Results for first half of 2013

Vizrt’s revenue for the first six months of 2013 was $58.7m, down 5% versus the first half of 2012.

The net profit for the first half of the year was $4.8m, versus a loss of $2.2m for the first six months of 2012.

EBITDA for the first half of 2013 was $9.2m, down 16% versus the same period last year.  The EBITDA margin for the first half of 2013 was 16%, compared to 18% for the first half of 2012.

Gross margins for the first half of the year were 67%, down from 68% in H1 2012.

Operating expenses for the first six months of 2013 were $31.7m, down 4% versus the first six months of the previous year.

 

Business Outlook:

In its investor presnetaion, the company said “we believe that the European market will continue to be soft into H2 2013, but we anticipate this weakness to be more than offset by the relatively robust markets in APAC and the Americas, resulting in continued overall growth. We will continue to strengthen our technological and strategic leadership, while at the same time maintain our financial prudence and discipline.”

“For the coming months we foresee continuing weakness in the European market where broadcasters are investing on a strict “need to have” basis, said Burkhalter.” We anticipate this weakness to be more than offset by the relatively robust markets in APAC and the Americas. We believe that our global presence, and regionalized distribution and support capabilities will allow us to capitalize on these region specific opportunities, resulting in continued overall growth. We will continue to strengthen our technological and strategic leadership, while at the same time maintain our financial prudence and discipline.”

.

.

Related Content:

Press Release: Vizrt Reports H1 and Q2 2013 Results

Vizrt Q2 2013 Investor Presentation

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

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

.

© Devoncroft Partners 2009 – 2013. All Rights Reserved.

.

Broadcast Technology Products Being Evaluated for Purchase in 2013 – 2014

broadcast industry trends, broadcast technology market research, Broadcast Vendor Brand Research, Quarterly Results | Posted by Joe Zaller
Jul 03 2013

This is the fourth in a series of articles about some of the findings from Devoncroft’s 2013 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 2013 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry. 

 

Previous articles about the 2013 BBS discussed the most important broadcast industry trends, how the relative commercial importance of broadcast industry trends have changed over time, and where money is currently being spent in the broadcast industry.

This article expands on the findings of the 2013 BBS Broadcast Industry Global Project Index by drilling down into the specific product categories that are being evaluated for purchase this year by our global sample of nearly 10,000 broadcast technology end-users in 100+ countries.

We presented research participant with a list of relevant product categories and asked to indicate which ones they are currently evaluating for purchase.

The results are shown in the chart below.

 

2013 BBS -- Product Being Evaluated for Purchase

 

In 2013 it is likely that production technology – such as video editing systems, camera-related products, and audio technology – will be in demand as broadcast professionals continue to upgrade their facilities to HDTV operations.

The new studios, OB vans, and channels that broadcasters have planned and budgeted for will drive the evaluation and purchase of a wide variety of equipment including studio cameras, production switchers, multiviewers, automation, storage, and transmission encoders. As always, test & measurement products will be required for these new facilities.

Strong interest in multi-platform content delivery is driving interest in products and services such as ingest/ streaming/ transcoding and online video delivery platforms.

The ongoing transition to file-based/tapeless workflows will drive the evaluation and purchase of products such as near-line/off-line/archival storage, production servers, and playout automation.

All of the above will likely benefit software-oriented systems such as workflow / asset management, library/storage management, and broadcast business management systems. These products help broadcast technology increase their operational efficiency by facilitating content storage & search; linear and multi-platform playout & distribution; and of course monetization.

 

The information in this article is based on select findings from the 2013 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 2013 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry. The BBS is published annually by Devoncroft Partners.

Unless otherwise specified, all data in this article measures the responses of all non-vendor participants in the 2013 BBS, regardless of factors such as organization type, organization size, job title, purchasing and geographic location.  Please be aware that responses of individual organization types or geographic locations may be very different. Granular analysis of these results is available as part of various paid-for reports based on the 2013 BBS data set. For more information about this report, please contact Devoncroft Partners

.

.

Related Content:

The 2013 Big Broadcast Survey (BBS) – overview of available reports, including covered brands and product categories

Largest Ever Study of Broadcast Market Reveals Most Important Industry Trends for 2013

Tracking the Evolution of Broadcast Industry Trends 2012 – 2013

Analyzing Where Money is Being Spent in the Broadcast Industry – The 2013 BBS Broadcast Industry Global Project Index

Devoncroft Partners: 2013 Broadcast Industry Market Research Findings

.

.

© Devoncroft Partners. All Rights Reserved.

.

.

 

 

Analyzing Where Money is Being Spent in the Broadcast Industry – The 2013 BBS Broadcast Industry Global Project Index

broadcast industry technology trends, broadcast industry trends, broadcast technology market research, market research | Posted by Joe Zaller
Jul 01 2013

This is the third in a series of articles about some of the findings from Devoncroft’s 2013 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 2013 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry. 

 

In a previous article, we published the 2013 BBS Broadcast Industry Global Trend Index, which shows how a global sample of nearly 10,000 broadcast professionals ranked a set of broadcast industry trends in terms of the commercial importance of each one to their business.

This was followed by a post called Tracking the Evolution of Broadcast Industry Trends 2012 – 2013, which examined how the relative commercial importance of broadcast industry trends have changed over time.

Rather than looking at industry trends, which are often an indicator of what might happen in the future, this article examines what technology products and services are actually being purchased today by broadcasters and media companies globally.

.

 

The 2013 BBS Broadcast Industry Global Trend Index (which can be found here) showed that the top-ranked broadcast industry trend in 2013 is “multi-platform content delivery.”  Other important trends include “file-based workflows,” “IP networking and content delivery,” and the “transition to HDTV operations.”

The 2013 BBS Trend Index includes a mix of current and future commercial priorities, some of which have already been widely deployed, on a wide scale, some of which are currently being trialed, and others which have not yet been widely implemented. Industry trends evolve and change over time, so tracking this evolution is helpful to better understand what customers are discussing and thinking about implementing in the future.

However, a top ranking in an industry trend Index does not necessarily translate into where broadcast technology buyers are actually spending their budgets in 2013 and 2014. Therefore, it’s important to make a clear distinction between what broadcast customers are thinking and talking about doing in the future (trends), and where they are spending their technology budgets today (projects).

Technology spending in the broadcast industry is typically project-based. Real (budgeted) projects are where broadcast technology budgets are being spent today, not just what people are talking about doing in the future.

Capital projects come in many forms.  They might include international elections, sporting championships, new services designed to attract incremental revenue, and the long-term planned capital upgrades of broadcast infrastructure and facilities.

In order to better understand this dynamic, we presented 2013 BBS participants with a list of 18 projects (determined based on feedback of BBS stakeholders), and asked them to indicate which of these projects they are currently in the process of implementing or have budgeted to implement within the next year.

Unlike industry trend data, which highlights what respondents are thinking/talking about doing in the future, this information provides direct feedback about what major capital projects are being implemented by broadcast technology end-users around the world, and provides useful insight into the capital expenditure plans of the industry.

Taken together, information about trends and projects collected in the 2013 BBS can be used to understand the difference between “trend and spend,” and/or hype and reality.

 

The 2013 BBS Broadcast Industry Global Project Index, shown below, measures the number of projects that research participants are currently implementing or have budgeted to implement.

2013 BBS -- 2013 BBS Broadcast Industry Global Project Index

 

Comparing the above chart with the 2013 BBS Broadcast Industry Global Trend Index illustrates the difference between what end-users are thinking and talking about (trends), and where they are actually planning to spend their budgets today (projects).

While “multi-platform content delivery” was this year’s top-ranked trend, when it comes to where money is actually being spent in 2013, more broadcast technology buyers said that they have budgeted for “upgrading infrastructure for HD/ 3Gbps operations” than any other project.

This finding is consistent with our previous research. Upgrading infrastructure for HD / 3Gbps operations has consistently been the top driver of broadcast technology spending for the past several years, and this is once again the case in 2013.

This year’s top project correlates directly with “transition to HDTV operations,” which was ranked #4 in the 2013 BBS Broadcast Industry Global Trend Index.

The projects ranked #3, #4, #5, #7, #9, and #12 in the 2013 BBS Broadcast Industry Global Project Index – “upgrading cameras,” “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. These new cameras, transmission upgrades, new studios, new channels, and upgraded news environments will almost certainly be at least HD capable, if not fully HD.

In some cases, industry trends and budgeted projects line up nicely. In others however, there are significant differences.

A good example of the latter is “multi-platform content delivery,” which has been the top-ranked trend in the BBS Broadcast Industry Global Trend Index since 2010, and dominated the Index this year.  However, the corresponding project measured in the chart above, “distribute and monetize content on multiple distribution platforms,” ranked #10 out of 18 in the 2013 BBS Broadcast Industry Global Project Index, significantly below items ranked much lower in the BBS Trend Index.

These findings are consistent with previous BBS studies, as well as our other research in the professional broadcast technology marketplace.

Despite strong interest in multi-platform content delivery, it appears that creating a sustainable (and profitable) business model for distributing and monetizing content on multiple digital distribution platforms has proven elusive to date for both end-users and technology vendors.

We have conducted numerous projects about multi-platform business models that involved interviewing senior executives from broadcasters and media companies. Although these executives immediately agree that getting to “multi-platform nirvana” is strategically important to their organizations, many readily admit that they have yet to find the right business model.

Many broadcasters and content owners believe that in order to achieve increased revenue and profitability in a multi-platform world, they must first dramatically increase their efficiency through the implementation of new workflows and technical systems, some of which do not yet exist.

This implies that there are likely to be significant opportunities in the future for broadcast technology vendors that are able to solve the technical, operational, and business challenges facing end-users who see multi-platform distribution and monetization as a critical part of their business strategy.

It also helps explain why “file-based/tapeless workflows” was ranked #2 in the 2013 BBS Trend Index, with many research participants saying it is the industry trend that is most important commercially to their businesses over the next few years.

Indeed, a number of capital projects are being implemented in 2013-14 are directly related to “file-based/tapeless workflows” trend. Examples of this are “cloud technology/cloud services,” “workflow / asset-management,” “archive-related projects,’ and “automating workflows.”

In particular, the #2 ranked project in 2013 — “install or enhance workflow / asset management system” – is an area where there has been a great deal of recent activity. Although it may seem that MAM has been set to become “the next big thing” for the past decade or so, it now appears that broadcasters are increasingly focusing on MAM deployments.

One reason for this could be that many end-users believe that in order to be profitable in a multi-platform world, they must significantly increase the efficiency of their operations, and broader use of MAM is seen as one part of solution.

Indeed, in a recent Devoncroft project, more than half of the senior executives from broadcasters and media companies we interviewed cited multi-platform content distribution as the factor that will drive the most change in their organizations over the next few years; and because of this, more than two-thirds predicted their spending on MAM and workflow tools will increase over the next two years.

The remainder of the 2013 BBS Broadcast Industry Global Project Index offers a mixed picture of project activity across the world, and includes everything from upgrading audio and newsrooms to migrating infrastructure from copper to fiber.

And as seen in the 2013 BBS Trend Index, some projects are being planned as the direct result of government or corporate mandates. “Prepare for analog switch-off” is the best example of this.  In the territories where governments have mandated a switch to digital broadcasting, tremendous planning and focus is being devoted to these projects, resulting in strong revenue for transmission and distribution-related products and services.

Interestingly, despite the fact that they may have the potential to deliver increased efficiencies and new revenue streams, some very large projects appear towards the bottom of this list. For example, “consolidate operations in regional hubs (centralcasting),” and “outsourced operations (playout),” are the bottom ranked projects in 2013. 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 2013 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.

.

The information in this article is based on select findings from the 2013 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 2013 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry. The BBS is published annually by Devoncroft Partners.

Unless otherwise specified, all data in this article measures the responses of all non-vendor participants in the 2013 BBS, regardless of factors such as organization type, organization size, job title, purchasing and geographic location.  Please be aware that responses of individual organization types or geographic locations may be very different. Granular analysis of these results is available as part of various paid-for reports based on the 2013 BBS data set. For more information about this report, please contact Devoncroft Partners

.

.

Related Content:

The 2013 Big Broadcast Survey (BBS) – overview of available reports, including covered brands and product categories

Largest Ever Study of Broadcast Market Reveals Most Important Industry Trends for 2013

Tracking the Evolution of Broadcast Industry Trends 2012 – 2013

Devoncroft Partners: 2013 Broadcast Industry Market Research Findings

Previous Year: The 2012 BBS Broadcast Industry Global Project Index

.

.

© Devoncroft Partners. All Rights Reserved.

.

.

 

 

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.

 .

.

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

.

© Devoncroft Partners. All Rights Reserved.

.

 

 

 

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.”

.

.

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

.

© Devoncroft Partners. All Rights Reserved.

.

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%).

.

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.

.

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.”

.

.

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

.

© Devoncroft Partners. All Rights Reserved.

.

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.

.

.

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

.

© Devoncroft Partners. All Rights reserved.

.

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”.

.

.

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

.

© Devoncroft Partners. All Rights Reserved.

.

%d bloggers like this: