Posts Tagged ‘Broadcast Graphics & Branding’

Chyron Posts Net Loss in Q3 2011 Despite Growing Revenue Nine Percent

broadcast technology market research, Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Nov 04 2011

Broadcast graphics specialist Chyron announced that its revenue for the third quarter of 2011 was $7.47m, an increase of 9% versus the same period a year ago, but down 21% versus the previous quarter.

After posting its first positive net income in two and a half years last quarter, Chyron recorded a net loss of $3.5m during the third quarter of 2011, significantly worse than the net loss of $480,000 during the same period a year ago.  The company had net income of $84,000 last quarter.

Gross margins for the quarter were 69%, the same as for the third quarter of 2010.

Operating expenses were $6.02m for the third quarter of 2011, up 11% versus last year due to increased sales and marketing headcount, which in turn led to higher compensation and travel costs.  The company’s operating loss for the third quarter of 2011 was $870,000, compared to an operating loss of $670,000 last year.

Product revenue in the quarter was $5.36m, up 1% versus the same period a year ago, but down 28% versus the previous quarter.

Service revenue in the quarter was $2.11m, up 34% versus the same period a year ago, and up 6% versus the previous quarter. Service revenue contributed 28% of total revenue, versus 23% last year, and 21% of total revenue last quarter.

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Year-to-date Results

For the nine months ended September 30, 2011, Chyron’s revenue was $23.5 million, an increase of 13% versus the first nine months of 2010. Year-to-date net losses are $3.85m, versus a net loss of $1.85m for the first nine months of 2010.

Product revenues for the first nine months of the year were $17.82m, an increase of 11%, compared to the comparable prior year period. Service revenues were $5.66m for the nine months of the year, up 22% versus the same period a year ago.  Year-to-date, service has contributed 24% of total revenue.

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Chyron CEO Michael Wellesley-Wesley said that the company’s results for the third quarter of 2011 “displayed improvement given the current uncertain economic conditions in the U.S. and Europe with our top line showing modest growth over last year’s third quarter. Our services revenues increased 34% in the third quarter of 2011 over the same period in 2010 as we remain focused on expanding our Axis World Graphics platform. Operating expenses in the third quarter of this year showed a slight increase as we continue to invest in the future growth of the Company by making strategic hires for key sales positions. Going forward, we anticipate further improvements in 2012, especially in the domestic market owing to factors associated with the 2012 Olympics and the upcoming Presidential election. Internationally, we are looking for an increased contribution from our EMEA and Latin America operations as a result of the increased headcount in the sales department that have been put in place this year.”

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Related Content:

Press Release: Chyron Reports Financial Results for the Third Quarter and First Nine Months of 2011

Previous Quarter: Chyron  Turns First Profit Since 2008 As Second Quarter 2011 Sales Jump 36 Percent

Previous Year: Chyron Grows Revenue 8% in Q3, Achieves EBITDA Breakeven as Losses Continue to Narrow

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Ranking Broadcast Technology Vendors Part 5 – The 2011 BBS Broadcast Technology Vendor Quality League Table

broadcast industry technology trends, broadcast industry trends, broadcast technology market research, Broadcast Vendor Brand Research, market research, technology trends, Top Broadcast Vendor Brands | Posted by Joe Zaller
Nov 01 2011

This is the eighth in a series of articles about some of the findings from the 2011 Big Broadcast Survey (BBS), a global study of broadcast industry trends, technology purchasing plans, and benchmarking of broadcast technology vendor brands.  More than 8,000 people in 100+ countries took part in the 2011 BBS, making it the largest and most comprehensive market study ever done in the broadcast industry.

Each year, as part of the Big Broadcast Survey (BBS), we ask broadcast professionals worldwide to rank a variety of technology vendor brands on a wide range of metrics.  We use this information to create a series of reports, which through benchmarking and industry “league tables” enable each vendor to understand its position in the market relative to the the industry as a whole as well as their company’s direct competitors.

In previous articles we wrote about the 2011 BBS Overall Brand Opinion League Table, the 2011 BBS Net Change in Overall Opinion League Table, the 2011 BBS Brand Opinion Leaders League Table, and 2011 BBS Broadcast Technology Vendor Innovation League Table.

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This post follows on from the 2011 BBS Broadcast Technology Vendor Innovation League Table, by focusing on one of the most important metrics for any technology company – quality.

In an industry that prides itself on the fidelity of its sound and images, the perception of quality is a very important metric for broadcast technology vendors.  Many vendors use quality as one of the key components of their market positioning, and customers often use technical performance and quality as a part of their procurement strategies.

To determine the market’s perception of the quality of broadcast technology vendors, respondents were asked to rank broadcast technology vendor brands for “Quality” on a scale of 1-10 – with 10 being best in the market, and 1 being worst in the market.

The top 30 ranked brands for overall opinion are shown below for the global sample of all respondents.

In all cases, these results are shown in alphabetical order, NOT in the order in which they were ranked in the study.

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The 2011 BBS Broadcast Technology Vendor Quality League Table

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As with previously published rankings, this list contains a broad mix of vendors including large and small firms; single product and multi-product firms; global and regional players; and audio and video technology providers.

In order to better understand what drives the perception of quality in the broadcast technology industry, let’s look deeper at the vendors on this list, beginning with the type of products produced by each vendor.

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Frequency of Product Category – Audio Takes 4 of Top 7 Spots

What about the product categories themselves?  Are some product categories inherently perceived as having higher quality?  If so are these products judged differently than other types of products by customers who are evaluating them for purchase?

As shown in the chart below, there is a very broad range of product categories included in the 2011 BBS Broadcast Technology Vendor Quality League Table – vendors that make products in 23 of the 26 product categories that were covered in the study.

However, when one looks at the frequency of the product categories produced by these vendors, it’s immediately apparent that the top categories are audio products.

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2011 BBS Quality League Table — Frequency of Product Categories:

 

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The top two products categories for quality are both from the audio side of the business – microphones and audio consoles.  In fact, four of the top seven product categories in this ranking are audio related, with only highly complex video products — video editing, camera lenses and ENG cameras — being included in this group.  This is an interesting data point, especially when one considers that out of 26 product categories covered in the 2011 BBS, only five were in the audio space.

The other product categories that appear multiple times are clustered in the live production and studio environments, and include camera lenses, studio cameras, production switchers, production servers, test and measurement and video transport.  Interestingly these products tend to be high ticket items that are produced by the industry’s larger vendors.

Since the industry’s largest vendors tend to operate in the most product categories, let’s evaluate the number of times each vendor appears in the 2011 BBS Broadcast Technology Vendor Quality League Table to see if there is a correlation between size of vendor / product range and the market’s perception of quality.

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2011 BBS Quality League Table — Number of 2011 BBS Product Categories per Brand:

When considering what drives the perception of quality, one question to consider is which type of vendor appears more often in the above ranking – those that are focused on a single type of product, or large multi-product vendors.

While our research does not evaluate each product produced by every vendor, we do put vendors into categories based on their product lines.  This gives a good representation of whether a particular vendor has a narrow or broad product-line-up.

The table below shows the number of 2011 BBS product categories produced by each brand (as defined by the segmentation used in the 2011 BBS).

 

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As shown above, the vast majority of the companies in the 2011 BBS Broadcast Technology Vendor Quality League Table provide products in just one of the product categories we measured as part of the study.

Please note that this is not a measure of company size, but rather a measure of how many product categories each of the above vendors was included in for the 2011 BBS. For example some of the “single product category companies” on the above list — such as Adobe, Dolby and Shure – are quite large.

Yet with 21 out of 30 vendors on this list producing a product in only one 2011 BBS category (out of 26 measured) it appears that that focused, specialized companies are regarded as quality leaders in the eyes of the market.  Nevertheless it’s also worth pointing out that large companies can also be considered industry innovators. For example, in the 2011 BBS study, Avid is covered in seven product categories, Snell is covered in five product categories, Sony is covered in four product categories and EVS appears three times.

To further illustrate this point, the chart below shows the number of 2011 BBS product categories per vendor in the 2011 BBS Broadcast Technology Vendor Quality League Table.

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Number of products per vendor – Single Product Companies Dominate Quality Rankings

A breakdown of how many product categories are produced by each vendor in the 2011 BBS Broadcast Technology Vendor Quality League Table is shown below:

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With more than two-thirds of the vendors in the 2011 BBS Broadcast Technology Vendor Quality League Table producing a product in just one 2011 BBS product category, this table clearly suggests that focused companies who apply their efforts to specialist product areas are often able to generate a higher perception of quality in the eyes of the market.

Of course, companies are listed here based on how many 2011 BBS product categories they produce, which is not an absolute measure of the products produced be each vendor. There are some very large companies on the list above who appear in just one 2011 BBS category. In total, the 2011 BBS looked at 118 vendors in 26 separate product categories (based on the IABM’s industry model), but even so, it did not necessarily cover the entire product range of all vendors.

Please keep in mind when reviewing this information that all data in these charts is presented in alphabetical order, not in the order brands were ranked by respondents to the 2011 BBS.  Also, the charts in this posting measure the responses of all non-vendor participants in the 2011 BBS respondents, regardless of their company type, company size, geographic location, job title and budget for broadcast technology products.  Finally please note that this study evaluated a total of 118 brands.

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In order to get full value from this data, it is necessary to evaluate these results on a granular basis.  If you would like more information, please contact Devoncroft Partners.

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This article is based on the findings from the 2011 Big Broadcast Survey (BBS), a global study of industry trends, technology purchasing behavior and the opinion of vendor brands.  With more than 8,000 people in 100+ countries participating, the 2011 BBS is the largest and most comprehensive market study ever done in the broadcast industry.

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Devoncroft Partners has published a variety of reports from 2011 BBS data.  For more information, please get in touch.

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Related Content:

Ranking Broadcast Technology Vendors Part 4 – the 2011 BBS Broadcast Technology Vendor Innovation League Table

Ranking Broadcast Technology Vendors Part 3 – the 2011 BBS Brand Opinion Leaders League Table

Ranking Broadcast Technology Vendors Part 2 – the 2011 BBS Net Change in Overall Brand Opinion League Table

Ranking Broadcast Technology Vendors Part 1 – the 2011 BBS Overall Brand Opinion League Table

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

Tracking Changes in Broadcast Industry Trends — 2011 Versus 2010 Broadcast Industry’s Most Comprehensive Market Study Reveals Top Trends of 2011

More Information About the 2011 Big Broadcast Survey from Devoncroft Partners

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Ranking Broadcast Technology Vendors Part 4 – the 2011 BBS Broadcast Technology Vendor Innovation League Table

broadcast industry technology trends, broadcast technology market research, Broadcast Vendor Brand Research, Top Broadcast Vendor Brands | Posted by Joe Zaller
Oct 25 2011

This is the seventh in a series of articles about some of the findings from the 2011 Big Broadcast Survey (BBS), a global study of broadcast industry trends, technology purchasing plans, and benchmarking of broadcast technology vendor brands.  More than 8,000 people in 100+ countries took part in the 2011 BBS, making it the largest and most comprehensive market study ever done in the broadcast industry.

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Each year, as part of the Big Broadcast Survey (BBS), we ask broadcast professionals worldwide to rank a variety of technology vendor brands on a wide range of metrics.  We use this information to create a series of reports, which through benchmarking and industry “league tables” enable each vendors to understand its position in the market relative to their the industry as a whole as well as their direct competitors.

In previous articles we wrote about the 2011 BBS Overall Brand Opinion League Table, the 2011 BBS Net Change in Overall Opinion League Table, and the 2011 BBS Brand Opinion Leaders League Table.

This post looks at one of the most important metrics for any technology company – innovation.

The product side of the film & broadcast industry is driven by technology and innovation.  All vendors spend heavily on research and development in order to create advanced technologies that make their products stand out from the competition.  Thus innovation is a very  important component of the brand image and reputation of vendors in this space.

To find out which broadcast technology vendors are considered to be most highly regarded in terms of innovation, respondents were asked to rank broadcast technology vendor brands for “Innovation” on a scale of 1-10 – with 10 being best in the market, and 1 being worst in the market.  The top 30 ranked brands for innovation are shown below for the global sample of all respondents.

Please note that these results are shown in alphabetical order, NOT in the order in which they were ranked in the study. 

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2011 BBS Innovation League Table:

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There are a wide variety of companies on this list, including large and small firms; single product and multi-product firms; global and regional players; and audio and video technology providers.

Let’s look specifically at the how these companies and their products were ranked in the 2011 BBS, beginning with products and technology.

As shown in the chart below, these companies make products in 23 of the 26 product categories that we covered in the 2011 BBS.

The top products for brand leaders are split between audio and video – with microphones, signal processing and video transport each appearing five times.

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2011 BBS Innovation League Table — Frequency of Product Categories:

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The 2011 BBS Innovation League Table is split fairly evenly between audio and video companies.  There’s also a healthy mix of hardware versus software products represented on this list.

Does company size play a role in innovation?  Larger companies offer more products and are consequently used in more places than their smaller counterparts.  But this does not necessarily translate into innovation.

As shown below, innovative products are produced by both small focused companies, as well as by larger multi-product vendors.

Let’s look at the number of product categories that each of these brands produces (as defined by the segmentation used in the 2011 BBS).

The table below shows the number of 2011 BBS product categories produced by each brand.

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2011 BBS Innovation League Table — Number of 2011 BBS Product Categories per Brand:

 

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As shown in the table above, vendors producing products in only one 2011 BBS category account for more than half of the vendors in the top 30 innovation list.  This suggests that focused companies who apply their efforts to specialist product areas are often able to generate more innovation in the eyes of the market.

At the same time, larger companies are also represented on this list of the broadcast industry’s top innovators.  For example, Grass Valley is covered in 8 product categories in the 2011 BBS, while both Evertz and Snell are covered in five product categories.  These are examples of larger companies who have managed to instill innovation across their product lines.

Of course, companies are listed here based on how many 2011 BBS product categories they produce, which is not an absolute measure of the products produced be each vendor. There are some very large companies on the list above who appear in just one 2011 BBS category. In total, the 2011 BBS looked at 118 vendors in 26 separate product categories (based on the IABM’s industry model), but even so it did not necessarily cover the entire product range of all vendors.

Please keep in mind when reviewing this information that all data these charts are presented in alphabetical order, not in the order brands were ranked by respondents to the 2011 BBS.  Also, the charts in this posting measure the responses of all non-vendor participants in the 2011 BBS respondents, regardless of their company type, company size, geographic location, job title and budget for broadcast technology products.  Finally please note that this study evaluated a total of 118 brands.

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In order to get full value from this data, it is necessary to evaluate these results on a granular basis.  If you would like more information, please contact Devoncroft Partners.

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This article is based on the findings from the 2011 Big Broadcast Survey (BBS), a global study of industry trends, technology purchasing behavior and the opinion of vendor brands.  With more than 8,000 people in 100+ countries participating, the 2011 BBS is the largest and most comprehensive market study ever done in the broadcast industry.

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Devoncroft Partners has published a variety of reports from 2011 BBS data.  For more information, please get in touch.

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Related Content:

Ranking Broadcast Technology Vendors Part 3 – the 2011 BBS Brand Opinion Leaders League Table

Ranking Broadcast Technology Vendors Part 2 – the 2011 BBS Net Change in Overall Brand Opinion League Table

Ranking Broadcast Technology Vendors Part 1 – the 2011 BBS Overall Brand Opinion League Table

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

Tracking Changes in Broadcast Industry Trends — 2011 Versus 2010

Broadcast Industry’s Most Comprehensive Market Study Reveals Top Trends of 2011

More Information About the 2011 Big Broadcast Survey from Devoncroft Partners

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Ranking Broadcast Technology Vendors Part 3 – the 2011 BBS Brand Opinion Leaders League Table

broadcast technology market research | Posted by Joe Zaller
Aug 16 2011

This is the sixth in a series of articles about some of the findings from the 2011 Big Broadcast Survey (BBS), a global study of broadcast industry trends, technology purchasing plans, and benchmarking of broadcast technology vendor brands.  More than 8,000 people in 100+ countries took part in the 2011 BBS, making it the largest and most comprehensive market study ever done in the broadcast industry.

 

Each year, as part of the Big Broadcast Survey (BBS), we ask broadcast professionals worldwide to rank a variety of technology vendor brands on a wide range of metrics.  We use this information to create a series of reports, which through benchmarking and industry “league tables” enable each vendors to understand its position in the market relative to their the industry as a whole as well as their direct competitors.

In previous articles we wrote about the 2011 BBS Overall Brand Opinion League Table, and the 2011 BBS Net Change in Overall Opinion League Table, which shows how our global sample of broadcast professionals ranked 118 broadcast vendor brands in terms of their overall opinion of these vendors, and also how their opinions have changed over time.

It’s obviously great news for the vendors who are listed in these rankings, and there were quite a few of them.  A total of 43 brands were listed in the 2011 BBS Overall Brand Opinion League Table; and a total of 51 brands were listed in the 2011 BBS Net Change of Brand Opinion League Table.

This post looks at the companies that were listed in both the Overall Opinion and Net Change in Overall Opinion Rankings. In other words, these are the companies whose brands are held in high regard today, and who are perceived to be getting better over time.

Just 30 brands (out of 118) were listed in both sets of rankings, either globally or regionally.

These are shown below.

Please note that these results are shown in alphabetical order, NOT in the order in which they were ranked in the study. 

 

2011 BBS Brand Opinion Leaders League Table:

 

There are a wide variety of companies on this list, including large and small firms; single product and multi-product firms; global and regional players; and audio and video technology providers.

What they have in common is strong brand recognition, and a dynamism that 2011 BBS respondents feel is making them even stronger.

Let’s look specifically at the how these companies and their products were ranked in the 2011 BBS, beginning with products and technology.

As shown in the chart below, these companies make products in 24 of the 26 product categories that we covered in the 2011 BBS.

The top products for brand leaders are split between audio and video – microphones and video editing.

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2011 BBS Brand Opinion Leaders League Table — Frequency of Product Categories:

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So is it possible that brand leadership can be predicted by the type of product that an organization produces? Interestingly this list is split fairly evenly between audio and video companies.  There’s also a healthy mix of hardware versus software.

What about the number of products that a vendor offers. Larger companies offer more products and are consequently used in more places than their smaller counterparts.  Let’s look at the number of product categories that each of these brands produces (as defined by the segmentation used in the 2011 BBS).

The table below shows the number of 2011 BBS product categories produced by each brand.

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2011 BBS Brand Opinion Leaders League Table — Number of 2011 BBS Product Categories per Brand:

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While there are several brands on this list that appear in many product categories, the vast majority produce only one or two types of products.  Indeed out of the thirty brands in this table, nearly 2/3 appear only once.

Keep in mind that companies who produce only one type of product are not necessarily small.  There are some very large companies on the list above who appear in just one 2011 BBS category.

It turns out that to fully understand what drives brand opinion and brand leadership, one needs to look at the factors that drive and influence these perceptions.  This includes the company’s reputation for things like innovation, reliability, quality, value and great customer service.

We’ll be looking at each of these factors in future articles, so stay tuned.

Please keep in mind when reviewing this information that all data these charts are presented in alphabetical order, not in the order brands were ranked by respondents to the 2011 BBS.  Also, the charts in this posting measure the responses of all non-vendor participants in the 2011 BBS respondents, regardless of their company type, company size, geographic location, job title and budget for broadcast technology products.  Finally please note that this study evaluated a total of 118 brands.

 

In order to get full value from this data, it is necessary to evaluate these results on a granular basis.  If you would like more information, please contact Devoncroft Partners.

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This article is based on the findings from the 2011 Big Broadcast Survey (BBS), a global study of industry trends, technology purchasing behavior and the opinion of vendor brands.  With more than 8,000 people in 100+ countries participating, the 2011 BBS is the largest and most comprehensive market study ever done in the broadcast industry.

 

Devoncroft Partners has published a variety of reports from 2011 BBS data.  For more information, please get in touch.

 

Related Content:

Ranking Broadcast Technology Vendors Part 2 – the 2011 BBS Net Change in Overall Brand Opinion League Table

Ranking Broadcast Technology Vendors Part 1 – the 2011 BBS Overall Brand Opinion League Table

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

Tracking Changes in Broadcast Industry Trends — 2011 Versus 2010

Broadcast Industry’s Most Comprehensive Market Study Reveals Top Trends of 2011

More Information About the 2011 Big Broadcast Survey from Devoncroft Partners

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Vizrt Q2 2011 Profit Triples as Revenue Jumps 32 Percent

broadcast technology market research, Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Aug 11 2011

Vizrt reported that its revenue for the second quarter of 2011 was $32.1m, an increase of 32% versus the same period a year ago, and up 15% compared to the previous quarter. The results were well above consensus estimate by analysts, and drove the company’s shares 5% higher on the day the results were released.

Net profit for the quarter was $4.5m, an increase of 322% versus last year, and up 111% compared to last quarter.

Gross margins in the quarter were 62%, up from 62% last year and 65% last quarter.  EBITDA was $6.4m for the quarter, an increase of 65% versus the second quarter of 2010 and an increase of 61% versus last quarter.

Broadcast graphics (BG) contributed $23.7m, or 74% of total revenue in the quarter. BG revenue increased 39% versus last year and was up 19% versus the previous quarter.

Media Asset Management (MAM) revenue in the quarter was $5.5m, an increase of 10% versus both last year and the last quarter.

Online and mobile revenue was $2.9m, up 38% from Q2 2010 and down 1% versus last quarter.

 

1H 2011 Results

Revenue for the first six months of 2011 was $60.1m, up 25% versus the same period in 2010. All business areas contributed to the revenue growth, with the strongest performance in BG and ONL.  Geographically, APAC led growth with 48%, compared to H1 2010.

BG revenues in H1 2011 accounted for 73% of total revenues and were up 26% versus the first six months of 2010. MAM accounted for 17% of total
revenue in H1 2011 and were up 11% versus 1H 2010. Online and mobile grew 57% in 1H 2011 versus the first six months if last year, and accounted for more than 10% of total revenue in the period.

Vizrt CEO Martin Burkhalter issued an upbeat statement saying “We are obviously pleased we have again managed to achieve record revenue levels, but perhaps even more pleasing is our bottom line performance, which saw a significant improvement, not only year on year, but also quarter on quarter.  It is clear that our strategic decisions and subsequent investments of the past couple of years are paying off.  Our combined and integrated product offering, supported by a strong commercial regionalization strategy, have allowed us not only to increase sales to existing customers but also reach a significant number of new ones.”

Commenting on the market conditions, Burkhalter added: “So far, the fiscal and macroeconomic challenges in the public sector of some European countries and the US have not had any visible negative impact on market conditions.  We do however see a growing concern related to rising public debt and signs of slower economic growth in certain regions that could, in the mid or long-term, have an impact.  That said, our performance has been very strong, and the signs for the second half of 2011 are positive.  We therefore expect to achieve stable growth for the second half of this year.”

 

Related Content:

Press release:  Vizrt Reports H1 and Q2 2011 Results

Vizrt Q2 & 1H 2011 Investor Presentation

Previous Quarter: Vizrt Revenue Up 18 Percent in Q1 2011, CEO Says Company Has Entered Phase of Strong and Stable Growth

Previous Year: Vizrt Announces Q2 and 1H 2010 Results

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Chyron Turns First Profit Since 2008 As Second Quarter 2011 Sales Jump 36 Percent

broadcast technology market research, Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Aug 04 2011

Chyron announced that its revenue for the second quarter 2011 was $9.43m, an increase of 36% versus the same period a year ago, and an increase of 43% versus the previous quarter. Net income in the quarter of $84,000 versus a loss of $710,000 last year.

This was the first time in 10 quarters that Chyron had positive net income.  Operating profit was $237,000, the highest it has been in 11 quarters.

Product revenue in the quarter was $7.43m, an increase of 38% versus the same period a year ago, and 47% higher than the previous quarter.  Service revenue in the quarter was $2m, up 30% versus the second quarter of 2010, and up 30% versus last quarter.  Service accounted for 21% of total revenue, versus 22% last year and 23% last quarter.

The improved performance was boosted by a large order from US TV station group Raycom Media.  On the company’s earnings call Chyron CEO Michael Wellesley-Wesley said the Raycom deal was in the region of $2m, and that Chyron had also done another for about $1m with a customer from Canada.

Wellesley-Wesley also said that the company was beginning to see return on new products launched since 2010, and that he expects this to continue through 2012.

Although the company’s performance this quarter was driven in part by several large orders, Wellesley-Wesley says that he believes the company can sustain similar quarterly revenue numbers without large contracts.  At the same time however, he noted that the company has several $1m+ orders in the pipeline.

 

1H 2011 Results

For the first six months of 2011 Chyron recorded a net loss of $350,000 on revenues of $16m, compared to a loss of $1.37m on revenues of $13.8m last year. Product revenue for the first six months of 2011 was $12.5 million, an increase of 16% compared to the comparable prior year period, accounting for 78% of total revenue.  Service revenue for the first half of 2011 was $3.55m, up 16% versus last year.

Gross margins were 70%, the same as for the comparable prior year period.

Wellesley-Wesley said that the company was beginning to see the initial stages of growth that it has been anticipating, and that the investments made in sales and marketing were starting to pay off. “This quarter we concentrated on adding experienced people to the sales and professional services
groups and placed them in key positions. We have also invested significantly in marketing over the past year. We look forward to these additional people contributing in the fourth quarter, and, more importantly, significantly growing our business in 2012 and beyond. We anticipate that this investment will drive revenue growth, especially in our international business over the next few quarters.”

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Related Content:

Press Release: Chyron Reports Financial Results for the Second Quarter and First Six Months of 2011

Previous Quarter Chyron Q1 Revenue Dips 4 Percent Due to Seasonality As It Gears Up for Growth in Second Half of 2011

Chyron Q2 2010 Losses Narrow as Revenue Jumps 20%

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Vizrt Revenue Up 18 Percent in Q1 2011, CEO Says Company Has Entered Phase of Strong and Stable Growth

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
May 19 2011

Vizrt  reported that its revenue for the first quarter of 2011 was $28m, an increase of 18% versus the same period a year ago, and a decline of 12% versus the previous quarter.

Gross margins in the quarter were 62%, up from 58% last year.  EBITDA was $3.97m for the quarter, an increase of 125% versus the first quarter of 2010. Net profit for the quarter was $2.1m versus a loss of $448,000 last year. Net cash provided by operating activities in Q1 2011 was $2.4m, the same as in Q1 2010.

Operating expenses in the quarter were $15.1m an increase of 10% versus last year.  The company attributed the increase in OPEX to an increase in headcount following its acquisition of Adactus, the implementation of its regionalization program, and a general salary increase implemented throughout the company in 2011.  The largest increase in expenses came from R&D, which were up 19% versus last year.

Broadcast graphics (BG) contributed $20m or 71% of total revenue in the quarter.  BG revenue was up 13% versus the first quarter of 2010, but down 14% versus the previous quarter.

Media Asset Management (MAM) accounted for 18% of revenue or $5m, an increase of 13% versus last year.

Online and Mobile (OLM) revenue was $3m in the quarter, an increase of 82% the first quarter of 2010, and an increase of 6% versus the previous quarter. Overall, OLM accounted for 11% of total revenue in the quarter. The company said the strong increase in OLM revenue was driven by a transaction with a large existing broadcast customer in Northern Europe, and the contribution from Adactus which was acquired last year.

On a geographic basis, sales in EMEA were $14.9m, or 53% of total revenue. EMEA revenue was up 13% versus the same period a year ago, and down 10% versus the fourth quarter of 2010. Sales in the Americas were $6.5m, or 23% of total revenue.  Sales in the Americas were up 26% versus the first quarter of 2010 and down 10% versus the previous quarter. Sales in Asia were $6.6m for the first quarter, up 24% versus the same period a year ago, and
basically flat sequentially.

Vizrt CEO Martin Burkhalter issued an optimistic statement about the company’s prospects.  “Over the past few quarters, the company has entered a phase of strong and stable growth.  This growth is on the one hand caused by the continued recovery of the general economic climate but on the other hand very much the result of our strategy execution. Although it is too early to make a prediction for the remainder of this year, for the immediate future we anticipate further stable growth.”

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Related Content:
Press release: VizrtReports Q1 2011 Results

More Broadcast Vendor M&A: Vizrt Completes Acquisition of LiberoVision

Vizrt Reports Record 2010 Revenue as Sales Jump 23 Percent

Vizrt reports increased revenue for first quarter 2010

 

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More Broadcast Vendor M&A: Vizrt Completes Acquisition of LiberoVision

Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
May 10 2011

Vizrt reported that it has reached a definitive share purchase agreement with LiberoVision, a provider of sports replay technology. The deal was first announced in November of 2010.

According to the agreement, Vizrt’s Swiss subsidiary will purchase LiberoVision in three installments. Vizrt will initially acquire 60% of LiberoVision for CHF 6 million (approximately $6.6 million) plus an additional CHF 1 million conditional on LiberoVision’s EBIT for 2010 being in excess of CHF 1 million.

A further 20% will be acquired 30 days following receipt of the financial results of LiberoVision for the financial year 2011 and the remaining 20% 30 days following receipt of LiberoVision’s financial results for the financial year 2012. The consideration for each additional 20% tranche of LiberoVision shall be calculated as 20% of ten times the EBIT for the applicable fiscal year.

As part of the transaction, the founders of LiberoVision are committed to continue their employment with LiberoVision for a period of at least two years.

Martin Burkhalter, CEO for Vizrt, stated, “We’re pleased to have finalized the purchase agreement, which will allow us to integrate LiberoVision’s technology further into our own sports offerings. At this year’s NAB, we successfully showcased the first steps in the integration of LiberoVision’s Libero Highlight 3D sports analysis and replay system with Vizrt’s broadcast graphics and media asset management (MAM) workflow. With this integration, we can address our respective client bases with an even stronger platform.”

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Related Content:

Press Release: Vizrt Signs Definitive Share Purchase Agreement in LiberoVision Acquisition

More Broadcast Vendor M&A: Vizrt Acquires Sports Replay Provider LiberoVision

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Chyron Q1 Revenue Dips 4 Percent Due to Seasonality As It Gears Up for Growth in Second Half of 2011

broadcast industry technology trends, Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
May 05 2011

Broadcast graphics specialist Chyron reported that its revenue for the first quarter of 2011 was $6.58m, a decrease of 4% versus the same period a year ago, and a decrease of 6% versus the previous quarter.

Net loss for the quarter was $0.44m, an improvement on the $0.65m net loss for the first quarter of 2010, but slightly worse than the net loss of $0.33m during the previous quarter. Operating loss in the quarter was $0.89m, compared to an operating loss of $0.46m in the prior year’s first quarter.

Company president and CEO Michael Wellesley-Wesley attributed the lower results to the timing of large enterprise orders, and the cyclical nature of the first quarter when many broadcasters delay purchase decision in advance of the annual NAB trade show. “Our first quarter results were in the neighborhood of what we reported last year and reflect a seasonal cycle whereby Q1 is traditionally our weakest. Many broadcast capital spending plans are finalized in Q1 and there is a natural sales pause leading up to the National Association of Broadcasters (“NAB”) conference, which is the industry’s largest trade show and ‘the’ venue to debut new technology.”

Product revenue in the quarter was $5.04m, down 6% versus both last year and the previous quarter. Service revenue in the quarter was $1.54m, up 2% versus last year, but down 7% versus last quarter. Service revenue accounted for 23% of total revenue during the quarter.

On the company’s earnings conference call, Wellesley-Wesley highlighted some of the company’s recent commercial success, including Sinclair Broadcast Group’s purchase BlueNet for 13 news-producing station, and Norwegian public broadcaster, NRK’s purchase of BlueNet for its 12 regional news stations. Wellesley-Wesley called the NRK deal “particularly gratifying from a competitive standpoint.”

Gross profit margin was 70% for the first quarter of 2011, the same as for the first quarter of 2010. Operating expenses were $5.49m for the first quarter, up 4% versus last year, primarily due to increased spending in the sales and marketing areas.

Wellesley-Wesley said that Chyron had reorganized its sales operations in 2010 and is now in the process of adding more sales resources in the US and internationally. As a result, the company’s sales and marketing costs have risen 15%, and the CEO says that he expects these costs to continue to increase as the company positions itself to take advantage of what it believes will be an upswing in spending through 2012.

“We remain guardedly optimistic that the broadcast market will continue its recovery and that our expanded sales team will capitalize on this renewed growth in Q2 2011 and beyond,” said Wellesley-Wesley.

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Related Content:

Press release: Chyron Reports Financial Results For The First Quarter 2011

Chyron Revenue Increases 8% in 2010 as Company Achieves Positive EBITDA on Smaller Losses. Separately, SVP and COO Kevin Prince Resigns

Previous year press release: Chyron Reports Financial Results For The First Quarter 2010

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Vizrt Posts 20% Revenue Growth in Q3, Sales Up 24% Year-to-Date

broadcast industry trends, Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Nov 11 2010

Broadcast graphics and asset management provider Vizrt announced that its revenue for the third quarter of 2010 was $25.9m, an increase of 20% versus the same period a year ago and an increase of 7% versus the previous quarter.

Revenue from broadcast graphics for the quarter was $19.4m, an increase of 24% versus the same period a year ago, and an increase of 14% versus the previous quarter.

Media asset management (MAM) revenue was $4.6m, an increase of 11% versus last year, but a decrease of 8% versus last quarter.

Online and mobile revenue was $1.8m, up 10% versus last year and down 16% versus the previous quarter.

On a geographic basis, the company reported that it grew revenues in all regions:

  • EMEA revenue was $14.9m for the quarter, 58% of total revenue.  Sales in EMEA were up 22% versus last year and up 10% versus Q2
  • Americas revenue was $6.5m, 25% of total revenue.  Americas sales were up 13% versus last year but down 1% versus the previous quarter.
  • Revenue from APAC was $4.5m, 17% of total revenue.  APAC sales were up 24% versus last year and up 9% versus last quarter.

 

For the year-to-date, the company’s revenue was $73.8m, an increase of 24% versus the first nine months of 2009.  On a product-line basis, broadcast graphics accounted for 73% of revenue this year, while MAM and online contributing 19% and 8% respectively.

Company CEO Martin Burkhalter said that the company’s broadcast graphics products were widely used in the recent US mid-term election, and that “The fact that all these big players choose Vizrt for their special events coverage has a tremendous positive effect on our brand and supports our sales efforts across the globe.”

The company said that all regions have shown sales growth during the first nine months of the year.  The strongest performer has been the Americas, where revenue is up 32% versus the first nine months of 2009.  EMEA and APAC revenues were up 24% and 17% respectively for the first nine months of 2010 versus the same period last year.

In its presentation to investors and equity analysts, the company said that it strongly believes in the future of 3D broadcasting, which it sees a future growth driver. The company recently invested in Stergen Hi-Tech Ltd., a developer of 2D to stereoscopic 3D video conversion software, to help it bring 3D solutions to market.

The company used the presentation to highlight several other growth drivers for the company.  These include the need of broadcasters for multi-platform content delivery and integrated workflow solutions; the continual migration to HDTV; and projects for special events.

Burkhalter issued a relatively upbeat statement saying: “Based on our current results and our solid backlog, we believe, provided there are no substantial changes in the macroeconomic environment that we are well positioned to continue our growth path.”

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You can read the full Vizrt Q3 earnings announcement here.

The Vizrt Q3 presentation to investors and equity analysts is here

A write-up of Vizrt’s Q2 and 1H 2010 results is here.

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