Posts Tagged ‘Broadcast Graphics’

Broadcast Vendor M&A: ChyronHego to be Taken Private by Vector Capital in $114 Million Deal

Analysis, Broadcast Vendor M&A, Quarterly Results, SEC Filings | Posted by Joe Zaller
Nov 17 2014

Broadcast graphics specialist ChyronHego announced that it has entered into a definitive agreement with Vector Capital, under which an affiliate of Vector will acquire all of the outstanding shares of ChyronHego common stock for $2.82 per share in cash.

San Francisco-based Vector Capital is a private equity firm with experience in the digital media sector. Recent portfolio investments include Corel and Technicolor. To fund the ChyronHego deal, Vector has secured committed financing consisting of a combination of equity and debt.

This is the second recent take-private transaction of a broadcast graphics provider. Earlier this month. Vizrt announced that it will be taken private by Nordic Capital in a $374m all-cash deal.

The $2.82 per share purchase price represents a premium of approximately 18% over the company’s average closing share price for the six months ending on November 14, 2014, and a 4% premium over the company’s closing share price on November 14, 2014, the last day of trading before the announcement.

Based on the total number of shares outstanding in ChyronHego, the deal equates to an equity value of approximately $114m. After backing out the cash on the company’s most recently published financial statements, this represents an enterprise value of approximately $108m.  On a valuation multiple basis, this is approximately 1.8x trailing 12 month’s revenue.

According to a shareholder FAQ, ChyronHego’s management team will stay the same after the transaction closes. Johan Apel will continue as CEO, and Soren Kjellin will continue as CTO.

The contractual details of the ChyronHego – Vector Capital agreement are complex and worth a longer discussion. We are preparing an analysis of the deal, and we will post this later this week.

A very brief synopsis of certain deal points follow:

  • Technically, the deal is a merger rather than an acquisition. ChyronHego is being merged into an entity controlled by Vector Capital, in order to create a new corporate entity, which will also be owned and controlled by Vector Capital.

 

  • All major shareholders on the ChyronHego management team have agreed to re-invest approximately 50% of their holdings in ChyronHego into the new corporate entity, for which they will receive approximately 31% of the equity in the new entity

 

  • Interestingly the merger agreement includes a “go shop” provision whereby ChyronHego has seven weeks to find a buyer who will offer a higher price than Vector Capital’s offer of $2.82 per share. Given Vizrt’s valuation in the Nordic Capital deal, and the fact that shares of ChyronHego have traded above $3.00 several times during the past year, it is possible that ChyronHego will be able to find a better offer. However, the “go shop” provision includes termination fees that will triggered under specified circumstances such as the acceptance of a superior offer. The company says it does not intend to disclose developments with respect to the solicitation process unless and until a decision has been made in respect to any potential superior proposal. 

 

The transaction is subject to customary closing conditions and most notably the approval by holders of two-thirds of ChyronHego’s outstanding shares and the approval by holders of a majority of shares held by current ChyronHego’s stockholders who will not become stockholders in the going-forward entity.  The Company expects the transaction to close in the first quarter of fiscal 2015.

The company said that its  board of directors and a special committee of the board composed entirely of independent directors have unanimously approved the deal, and have recommend that ChyronHego’s stockholders approve the transaction

“We are very happy to announce this partnership with Vector Capital, an established global technology oriented private equity firm that is focused on building long-term value. Our management is convinced that this is the right opportunity at the right time for ChyronHego’s customers, employees and stockholders,” said Apel.

In the third quarter of 2014, ChyronHego posted a net loss of $2.6m on revenue of $14. During the first nine months of 2014, ChryronHego posted a net loss of $2.8m on revenue of $43.3m.

.

.

Related Content:

ChyronHego Investor FAQ and Introduction to Vector Capital

Agreement and Plan of Merger: ChyronHego Corporation, Vector CH Holdings (Cayman), L.P., And CH Merger Sub, Inc.

ChyronHego SEC Filing: Entry into a Material Definitive Agreement with Vector Capital

ChyronHego One Year Stock Price Chart

Broadcast Vendor M&A: Vizrt to be Taken Private in $374 Million All-Cash Deal

.

.

© Devoncroft Partners 2009 – 2014. All Rights Reserved.

.

.

Broadcast Vendor M&A: Vizrt to be Taken Private in $374 Million All-Cash Deal

Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
Nov 10 2014

Broadcast graphics and MAM specialist Vizrt announced that it will be taken private in an all-cash deal that values the company at $374m.

The buyer is Nordic Capital, a leading Nordic PE firm with four active funds with over EUR 11 billion in total committed capital. Under the terms of the deal Vizrt will be merged with 24 October Holding AG, an entity indirectly controlled by Nordic Capital Fund VIII, and NOR Merger Sub Ltd.

The transaction values Vizrt at a 32% premium to the company’s closing share price November 7, 2014, the last trading day prior to the announcement of the deal, and a 35% premium to the company’s six months volume weighted average share price of the for the period ending on November 7, 2014.

“I and the management team are excited about the opportunities we all believe we have ahead of us,” said Vizrt CEO Martin Burkhalter. “Nordic Capital is very committed to support our growth strategy going forward. Being a privately owned company opens up for accelerated growth opportunities through, amongst others, future acquisitions that support our long-term strategy. The discussion management has held with Nordic Capital over the last few months gives us the necessary confidence that Nordic Capital will fully back-up our continuous efforts to stay ahead of the game by further strengthening our innovative capabilities.”

The deal is expected to close on or around January 31, 2015, provided all conditions for completion have been fulfilled.

Completion of the transaction is subject to the approval by a Shareholders Meeting of Vizrt by simple majority which is expected to be held on or about December 18 2014. Shareholders representing 51.5% of the total share capital of Vizrt have declared that they will vote in favor of the deal

“Our Board has undertaken a careful review of the terms and conditions of the Merger and is unanimous in its recommendation. We consider the cash based offer as fair and in the best interest of our shareholders. We believe that Nordic Capital, with its breadth of expertise and proven track record of developing companies, will be a strong owner of Vizrt.” stated Dag J. Opedal, Chairman of the Board of Directors of Vizrt.

The Company and Nordic Capital shall cooperate for a delisting of the Company’s shares from the Oslo Stock Exchange as soon as possible after the Merger becomes effective.

.

.

Related Content:

Press Release: Nordic Capital to pay NOK 37 in cash per VIZRT Ltd. Share

.

.

© Devoncroft Partners 2009 – 2014. All rights reserved.

.

.

Orad’s Revenue Jumps 40.7 Percent in Q2 2014

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Aug 18 2014

Graphics and media asset management (MAM) provider Orad reported that its revenue for the second quarter of 2014 was $10.2m, an increase of 40.7% versus the same period a year ago, and up 9.7% versus the previous quarter.

Product sales in Q2 2014 were $7.5m, or 73.7% of total revenue, an increase of 33.4% versus the 2nd quarter of last year when product sales were $5.6m, or 77.7% of total revenue.

Service revenue in the quarter was $2.68m, or 26.3% of total revenue, an increase of 65.9% versus the 2nd quarter of last year when service revenue was $1.62m, or 22.3% of total revenue.

Net profit for the quarter was $800,000, versus a loss of $1.3m during the same period a year ago, and up 14.2% versus last quarter.

Gross margins for the quarter were 69.3% versus 62.5% last year, and 67.8% 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.

Operating expenses were up across the board.

R&D expense for the quarter was $1.54m, or 15.1% of total revenue, up 5.8% versus the same period a year ago.

Sales & marketing expenses were $3.7m, or 36.4% of total revenue in the quarter, up effectively flat versus the third quarter of 2013, when sales and marketing costs were 51% of total revenue.

G&A expenses in the quarter were $899,000, or 8.8%% of total revenue, up 5.4% from last year.

Cash, cash equivalents and restricted cash at the end of June 2014 amounted to $7.6m compared to $6.4m at the end of March 2014.

 

First Half 2014 Results

For the first six months of 2012, Orad’s revenue was $19.5m, up 35.2% versus the first half of 2013.

Product sales for the first six months of 2014 were $14.8m, or 76.1% of total revenue, an increase of 36.2% versus the same period a year ago, when product sales were $10.9m, or 75.6% of total revenue.

Service revenue for the first six months of 2014 was $4.65m, or 23.9% of total revenue, an increase of 36.2% versus the same period a year ago, when product sales were $10.9m, or 75.6% of total revenue.

Net Profit for the 1H 2012 was $1.5m, versus a loss of $2.2m for the first six months of 2013.  Gross Margins for the first half of 2012 were 68.6%, up from 63.5% for the first six months of 2013.

Operating income for 1H 2012 was $1.7m, compared to a loss of $2.2m for the first half of 2013.

R&D expenses for the first half of 2014 were $3m, or 15.5% of total revenue, up just under 1% versus the first six months of last year when R&D expenses represented 20.7% of total revenue.

Sales & marketing expenses for 1H 2014 were $6.7m, or 34.7% of total revenue, up 3.2%% versus the first half of 2013 when S&M expenses represented 45.5% of total revenue.

G&A expenses in the 1H 2014 were $1.9m, or 9.8% of total revenue, up 9.9% versus the first half of 2013 when G&A expenses represented 12.1% of total revenue.

 

 

Outlook

Orad says that it is expecting its revenue for the full year 2014 to be between $39m and $40m, in line with previous projections. If the company achieves the projected top-line results, it would represent an increase of 22% to 26% compared to 2013.

Full year operating profits for 2014 are expected to be approximately 6% to 8% of revenues, compared to the operating loss of 5% in 2013.

 

“We are pleased to announce the results of this quarter which show the highest level of quarterly revenues in the Company’s history,” said Orad CEO Avi Sharir. “Revenues for the first half of 2014 show an increase of 35% compared to the same period in 2013. This substantial increase in revenues is attributed to the return of our traditional markets and the higher penetration in new markets such as North America. We have recently announced several important sales in North and South America to major American and Brazilian broadcasters. Our efficient and cost effective solutions enable broadcasters to substantially increase their ROI by providing them efficient and cost effective solutions.

.

.

Related Links:

Press Release: Orad Reports Financial Results for the Second Quarter and the first six months of 2014

Previous Year: Orad Revenue Declines 29% in Q2 2013, Announces 10% Workforce Reduction

.

.

© Devoncroft Partners 2009 – 2014. All Rights Reserved.

.

.

 

 

Orad Revenue Declines 29% in Q2 2013, Announces 10% Workforce Reduction

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Aug 20 2013

Graphics and media asset management (MAM) provider Orad reported that its revenue for the second quarter of 2013 was $7.2m, down 29% versus the same period a year ago, and up 1% versus the previous quarter.

 “The lower level of activity which started in Q3 2012, mostly due to the economic situation in Europe, continued through the second quarter of 2013, as reflected in the disappointing results for the second quarter and also for the first half of the year,” said Orad CEO Avi Sharir.

Orad has been struggling since the third quarter of last year, particularly in Europe, which is the company’s largest market. In February 2013, the Orad issued a profit warning for the full year 2012, saying at that time that it expected its profit to fall by about 34 percent.

The company’s results in Q2 2013 show that the company continues to struggle in the European market. However, the company also reported a bright spot in an otherwise disappointing quarter, saying that its order intake increased during the quarter. “We are happy to announce that during Q2 2013 we booked the highest volume of orders ever in Orad’s history, setting a new record,” said Sharir.

Orad’s product revenue in the quarter was $5.6m (78% of total revenue), down 33% versus the same period last year, and up 7% versus the previous quarter.  Service revenue in the quarter was $1.6m, down 11% versus last year, and down 14% versus the previous quarter.

The net loss for the second quarter of 2013 was $1.3m, or -$0.11 per share, compared to a net profit of $732,000 or $0.06per share last year, and a net loss of $944,000, or $0.08 per share last quarter. 

Including additional charges in the quarter, the total comprehensive loss for the second quarter of 2013 was $1.375m, compared to total comprehensive income of $507,000 last year, and a total comprehensive loss of $1m last quarter.

Gross margins for the quarter were 63% versus 69% last year, and 65% last quarter.

The operating loss for the quarter was $1.46m, compared to an operating profit of $1m last year, and and operating loss of $657,000 last quarter.

Operating expenses for the quarter were $6m (83% of total revenue), down slightly from last year, and up 14% versus the previous quarter.

R&D costs for the second quarter of 2013 were $1.45m, up 5% versus the same period last year, and down 5% compared to last quarter.  R&D costs were 20% of total revenue in the quarter, compared to 14% of total revenue last year, and 21% of total revenue last quarter.

Sales and marketing expenses in the quarter were $3.7m, down 2% versus the same period last year, and up 29% compared to last quarter.  Sales and marketing costs accounted for 51% of total revenue in the quarter, compared to 37% of total revenue last year, and 40% of total revenue last quarter.

Following the company’s sharp rise in sales and marketing costs this quarter, Sharir says that Orad will continue to spend in this area.  “We also continue to invest in our sales and marketing infrastructure and in particular have put emphasis on strengthening our North America office with the addition of a few senior people,” he said.

General and administrative expenses in the quarter were $853,000, down 4% versus the same period last year, and down 4% compared to last quarter.  G&A costs accounted for 12% of total revenue in the quarter, compared to 9% of total revenue last year, and 12% of total revenue last quarter.

The company ended the quarter with $5.6m in cash equivalents and restricted cash, compared to $9.6m last year, and $7.2m last quarter.

 

Announcement of 10 Percent Workforce Reduction

Although the company says it had strong order intake during the second quarter of 2013, Sharir says it’s “too early to tell if we reached a turning point in the level of activity, but it is certainly a very encouraging sign.”

“As a measure of caution, we have decided to align our operating expenses with our current financial results, and have decided to reorganize some departments, reducing our overall headcount by 10% and trim other operational costs as well. The result of these measures will be seen in the lower cost of operating expenses expected as of the fourth quarter of 2013. The decrease in our operational expenses will not affect our continuous focus on strategic initiatives.”

 

First Half 2013 Results

For the first six months of 2013, Orad’s revenue was $14.4m, down 24.7% versus the first half of 2012.

The net loss for the first six months of 2013 was $2.2m, compared to net income of $1.7m for the first half of 2012.

Gross Margins for the first half of 2013 were 64%, down from 69% for the first six months of 2012.

The operating loss for the first six months of 2013 was $2.1m compared to operating income of $1.8m for the first six months of 2012.

Operating expenses in the first six months of 2013 were $11.3m, or 78% of total revenue, down 1% versus last year when total operating expenses accounted for 60% of overall revenue.

R&D expenses for the first half of 2013 was $3m, or 20% of total revenue, up 9% versus the same period a year ago when R&D accounted for 15% of revenue,

Sales & marketing expenses for the first six months of 2013 $6.6m, or 45% of total revenue, down 3% % versus the first half of 2012 when sales and marketing accounted for 45% of revenue.

General and administrative expenses for the first six months of 2013 were $1.7m, or 12% of total revenue, down 9% versus the first half of 2012 when G&A expenses were or 10% of total revenue.

.

.

Related Content:

Press Release: Orad Results for the second quarter and for six months of 2013

Previous Year: Revenue Up, Profit Down at Orad in Q2 2012

Previous Quarter: Orad: Results for the First Quarter

Orad Warns of Lower Revenue, Net Loss in Q4 2012 of 2013

 

.

© Devoncroft Partners. 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.

.

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.

.

 

 

 

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

Broadcast Vendor M&A | Posted by Joe Zaller
Feb 28 2013

Vizrt announced that it has closed the third and final tranche of the acquisition of virtual sports enhancement technology provider LiberoVision.  Following the closing of the deal, Vizrt will own 100% of the outstanding share capital of LiberoVision.

The purchase price for this transaction was $2.4m, comprised 80% cash ($1.9m) and 20% Vizrt stock (135,908 shares), and was based on a previously announced earn-out formula whereby Vizrt would  pay  20% of ten times LiberoVision 2012 EBIT.

In total, Vizrt paid $10.4m for LiberoVision.

.

.

Related Content:

Press Release: Vizrt closes third tranche of LiberoVision AG acquisition

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

More Broadcast Vendor M&A: Vizrt Acquires Additional 20 Percent of LiberoVision

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

.

© Devoncroft Partners. All Rights Reserved.

.

Orad Warns of Lower Revenue, Net Loss in Q4 2012

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 27 2013

Graphics and media asset management (MAM) provider Orad disclosed that it expects its Q4 2012 revenue to be in the range of between approximately $ 6.9m and $7.1m, 18% to 21% lower than the third quarter of 2012.

As a result of the lower revenue, the company says it now expects to report a net loss in the range of $600,000 to $800,000 for the fourth quarter of 2012.

The company said its Q4 2012 revenue decline was “largely due to the economic weakening of Orad’s target markets, particularly Europe. The uncertainties in the economic environment have led to lengthening of sales cycles and to delay of some customers’ investment decisions.”

Orad says that it now expects to report a net profit in the range of $1m to $1.2m for the full year 2012, 27% to 34% lower than last year.

This announcement appears to be a continuation of the decline in European revenue that Orad began to experience in the third quarter of 2012.  The company’s revenue in the third quarter of 2012 was $8.8m, down 2.7% versus the same period a year ago, and down 14% versus the previous quarter. At that time, company CEO Avi Sharir said the company’s Q3 results were impacted by a slowdown in its markets, especially in Europe.

.

.

Related Content:

Press Release: Ad-hoc-Disclosure According to § 15 WpHG

European Slowdown Results in Lower Revenue and Profit for Orad in Q3 2012

Orad Top Line Grows 21% in 2011, Profit up 24%

.

© 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.

.

European Slowdown Results in Lower Revenue and Profit for Orad in Q3 2012

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Nov 19 2012

Graphics and media asset management (MAM) provider Orad reported that its revenue for the third quarter of 2012 was $8.8m, down 2.7% versus the same period a year ago, and down 14% versus the previous quarter.

Company CEO Avi Sharir said the company’s Q3 results were impacted by a slowdown in its markets, especially in Europe.

Net profit for the quarter was $122,000, down 85% versus last year, and down 81% versus last quarter.

Gross margins for the quarter were 67% versus 71% last year, and 69% last quarter.

Operating income for the third quarter was $11,000, down from $1.036m last year, and $919,000 last quarter.

Operating expenses for the quarter were $5.87m, up 9% versus last year.

R&D expense for the quarter was $1.4m, or 16% of total revenue, up 7% versus the same period a year ago, and flat versus the previous quarter.

Sales & marketing expenses were $3.57m, or 41% of total revenue in the quarter, up 17% versus the third quarter of 2011, and down 6% versus the previous quarter.

G&A expenses in the quarter were $897,000, or 10% of total revenue, down 12% from last year, and flat with the previous quarter.

The company ended the quarter with 261 employees, up from 251 last quarter; and $8.3m in cash, down from $13.1m last year, and $9.6m last quarter.

 

Year-to-date Revenue up 8.5 Percent

For the first nine months of 2012, Orad’s revenue was $27.9m, up 8.5% versus the first nine months of 2011. The company attributed the YTD revenue increase to new products and expansion into new geographic territories.

Net Profit for the first nine months of 2012 was $1.6m, down 30% versus the same period a year ago.

Gross Margins for the first nine months of 2012 were 68%, down from 70% for the same period a year ago.

Operating income for first nine months of 2012 was $1.621m, down 29% versus last year.

R&D expenses for the first nine months of 2012 was $4.22m, or 15% of total revenue, up 12% versus the same period a year ago.  Sales & marketing expenses for first nine months of 2012 were $10.487m, or 38% of total revenue, up 14% versus the same period last year. Year-to-date G&A expenses were $2.795m, or 10% of total revenue, essentially flat with last year.

 

Sharir said that the company’s revenue in the first nine months of 2012 grew by 8% versus the same period in 2011, but that revenue in the third quarter of 2012 was impacted by a slowdown in its main markets, especially in Europe.  This is a contrast to last quarter when the company said that weak macroeconomic environment in Europe, which accounts for approximately half of Orad’s revenue, had not impacted its results.

“We feel proud with the significant part that Orad took in the American elections, a project that demonstrates the company’s strength and status as a leading provider in its field. Orad was chosen to supply equipment and services to 4 leading broadcasting networks in the U.S. during and following the election period, and we are currently engaged in a number of processes for the purpose of selling equipment and services to leading media operators in the U.S.A., Europe and Asia,” said Sharir.

Sharir did not provide an update on the company’s continuing evaluation of registration its shares on the Tel Aviv Stock Exchange, which Orad disclosed earlier this year.

.

.

Related Content:

Press Release: Orad Hi Tec Systems Ltd: Revenues in the first nine months of 2012

Previous Quarter: Revenue Up, Profit Down at Orad in Q2 2012

.

© Devoncroft Partners. All Rights Reserved.

.

%d bloggers like this: