Graphics and media asset management (MAM) provider Orad reported that its revenue for the fourth quarter of 2014 was $10.6m, an increase of 21.7% versus the same period a year ago, and up 1% versus the previous quarter.
Product revenue in Q4 2014 was $8.2m, or 78% of total revenue, an increase of 53.4% versus the 4th quarter of last year when product sales were $5.4m, or 61.9% of total revenue.
Service revenue in Q4 2014 was $2.3m, or 22% of total revenue, a decline of 29.7% versus the 4th quarter of last year when service revenues were $3.3m, or 38.1% of total revenue.
Net income for the quarter was $1.1m versus a net profit of $200,000 during the same period a year ago, and a net profit of $800,000 last quarter.
Gross margins for the quarter were 69.9%, versus 68.6% last year, and 71.1% last quarter.
Operating income for the quarter was $900,000, versus an operating loss of $1.5m during the second quarter of 2013, and operating income of $800,000 last quarter.
Cash, cash equivalents and restricted cash at the end of December 2014 were $10.4m, compared to $9.1m at the end of September 2014, and compared to $5.7m at the end of December 2013.
Full Year 2014 Results
For the full year 2014, Orad’s revenue was $40.5m, up 27.3% versus 2013.
Revenue from Europe was $19.2m, up 38.2% versus 2013. Europe accounted for 47.3% of total 2014 revenue. In 2013, revenue from Europe was $13.86m, or 43.6% of total revenue.
Revenue from Asia was $6.5m, a decline of 5.7% versus 2013. Asia accounted for 16% of total 2014 revenue. In 2013, revenue from Asia was $6.9m, or 21.6% of total revenue.
Revenue from the Americas was $14.3m, an increase of 44.5% versus 2013. The Americas accounted for 35.3% of total 2014 revenue. In 2013, revenue from the Americas was $9.9m, or 31.1% of total revenue.
Product sales for year were $31.3m, an increase of 31.5% versus 2013. Product sales accounted for 77.2% of total revenue in 2014, up from 74.8% in 2013.
Service revenue for 2014 was $9.2m, up 14.9% versus 2013. Service revenue accounted for 22.8% of total revenue in 2014, compared to 25,2% in 2013.
Operating income for 2014 was $4.36m, compared to a loss of $1.6m in 2013.
Net income for 2014 was $3.4m, compared to a net loss of $1.9m in 2013.
Gross Margins for 2014 were 69.7% up from 66.6% in 2013.
Operating expenses for the year were up across the board.
R&D expenses for 2014 were $6.1m, up 3.5% versus 2013. R&D expenses accounted for 15.1% of total revenue in 2014, compared to 18.6% of total revenue in 2013
Sales & marketing expenses for 2014 were $13.8m, up 4.5% versus 2013. Sales & marketing &D expenses accounted for 34.2% of total revenue in 2014, compared to 41.6% of total revenue in 2013
G&A expenses for 2014 were $3.9m, up 9.7% versus 2013. G&A &D expenses accounted for 9.7% of total revenue in 2014, compared to 11.4% of total revenue in 2013
“We are pleased to announce that 2014 has been our most successful year in many aspects,” said Orad CEO Avi Sharir. “Profits have continued to increase, reaching the highest level in the company’s history. Our operating income for 2014 was 10.8% from revenues, far better than our outlook of 8%-10%. We have succeeded in meeting these impressive results thanks to our strong increase in revenues resulting from our wide range of products and solutions, our extensive geographic presence and as a result of our increased efficiency. Our strategy to offer customers comprehensive solutions was very successful with several very significant sales. Orad’s solutions’ offering brings added value to the customer by simplifying his workflow, while offering a one stop shop for the entire solution. Our servers took the forefront this year, penetrating new markets. We are seeing increased interest from existing and new customers, and given the size of the potential market, we are aiming to increase our market share. Our strategy to strengthen our presence in the North American market in 2014 proved successful, doubling our bookings compared to 2013.
“I am confident that Orad will continue in 2015 in the same direction as we continue to invest in cutting edge new technologies and increase our presence in existing and new markets,” said Sharir.
Press Release: Orad Reports Financial Results for the Fourth Quarter and for the for the Full Year of 2014
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