Posts Tagged ‘Digital Cinema’

Broadcast Vendor M&A: EVS Disposes of dcinex Stake for €10.8 Million

broadcast industry trends, Broadcast Vendor M&A | Posted by Joe Zaller
Jul 21 2014

EVS announced that it has reached an agreement to sell its 41.3% stake in dcinex, a digital cinema solutions provider, to Ymagis SA.

The company says that the deal, which values decinix at up to  €10.8m, will allow EVS to focus fully on its four core market strategy in the broadcast sector.

Originally called XDC, dcinex was founded  in 2004 by EVS co-founder Laurent Minguet, and changed its name to dcinex in 2012. It’s principal activities are digital cinema, distribution of alternative content (Ddcinema) and development of the Cinestore products.

Under the terms of the deal, EVS will receive at the closing:

  • EUR 2.1 million in cash
  • 288,851 new Ymagis shares
  • EUR 6.4 million in Ymagis bonds, which have a maximum maturity of 5 years. These bonds are associated with warrants.
  • In addition, dcinex will reimburse the currently existing shareholders` loans. Today, the loan granted by EVS (including interests) amounts to EUR 1.5 million.

In total, the approximate aggregate value of the different components (at last closing Ymagis share price of EUR 7.90) represents around EUR 10.8 million for EVS. On March 31, 2014 dcinex was valued at EUR 7.9 million on the EVS balance sheet.

Joop Janssen, CEO of EVS, said: “dcinex was created within EVS 15 years ago. In 2004, it was decided to spin it out. With the support of EVS, dcinex has developed itself to become a leading provider of digital cinema services in Europe. In the bigger entity that will result from this transaction, dcinex will be even stronger to continue its successful evolution in that market. EVS will now fully focus on its four core market strategy (Sport, Entertainment, News and Media) in the broadcast sector.”

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© Devoncroft Partners 2009 – 2013. All Rights Reserved.

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Broadcast Vendor M&A: Dolby to Acquire Doremi for $92.5 Million

broadcast technology market research | Posted by Joe Zaller
Feb 24 2014

Dolby Labs has signed a definitive agreement to acquire digital cinema replay server vendor Doremi for $92.5 million in cash plus an additional $20 million in contingent consideration that may be earned over a four-year period.

The addition of the Doremi product line complements Dolby’s existing line-up of digital cinema replay servers.  Dolby was a pioneer in this market, and enjoyed strong success in markets such as North America, where its system was adopted.  According to filings with US securities regulators, Dolby’s cinema product business (which includes more than just digital cinema replay servers) delivered $169.69m of revenue in 2010, but by the end of 2012 had declined 47% to $88.88m.

Doremi has established a strong foothold in emerging markets where the conversion of cinemas to digital projection technology has not been completed. According to company press releases, Doremi claims to have a 70% market share of digital cinema servers in Latin America, and to have shipped 55,000 of its digital cinema replay servers, including 5,000 units between June – December 2013.

Doremi says it was the first company to achieve compliance with the Digital Cinema Initiative (DCI) specification, and that its digital cinema replay products support 4K development and 3D High Frame Rate playback, which eh company says has “been a en a major contributor to the company’s success.”

Interestingly Dolby’s announcement specifically mentions the company’s new Atmos “object-based sound platform.”  Thus it’s likely that in addition to gaining share in developing markets, Dolby is using the Doremi acquisition as a way to expand the base of Atmos-enabled cinemas around the world.  If this strategy succeeds, Dolby can use the leverage of a large theatrical installed base to further enhance its core business of licensing technology for consumer applications.

Dolby has stated previously that Atmos technology, initially designed for the cinema can be brought to home users for TV and listening via headphones.

However, Dolby has competition for the next generation of consumer audio licensing opportunities. DTS and Fraunhofer have both developed “multi-dimensional audio” codecs with speakers enveloping the viewer (placed on the sides, in front, back and on top).

Rival DTS has developed its Ultra High-Definition (UHD) audio system (aka “Neo:X” consisting of 11.1 channels). German based research organization Fraunhofer (developer of the MP3 audio codec) has developed MPEG-H (up to 22.2 channels), which consists of an Extended HE-AAC based audio codec and a 3-D rendering engine, which supports the efficient transmission of “3-D audio signals” and flexible rendering for the playback of 3D audio in a wide variety of listening scenarios.

“Dolby and Doremi Labs have complementary technology expertise and solutions”

“Dolby and Doremi Labs have complementary technology expertise and solutions,” said Kevin Yeaman, President and CEO, Dolby Laboratories. “Together we’ll be able to advance the pace of innovation and create the kind of cinematic experiences that drive movie attendance for our exhibitor partners.”

“For more than 40 years, Dolby has provided innovative technology to the cinema exhibition industry, offering storytellers the tools and technology to express their visions in new ways,” said Camille Rizko, Founder and President, Doremi Labs. “But more importantly, Dolby shares our commitment to working closely with exhibitors to bring amazing experiences to moviegoers.”

According to Dolby, the acquisition is subject to customary closing conditions, including review by US and international regulators. Depending on these conditions, the transaction is anticipated to close by the end of 2014. The impact of the acquisition on fiscal year 2014 revenue and non-GAAP results is not expected to be material.

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Related Content:

Press Release: Dolby Signs Agreement to Acquire Doremi Labs

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Vendor M&A: Barco Buys Majority Stake in projectiondesign

Broadcast Vendor M&A | Posted by Joe Zaller
Dec 20 2012

Video and data visualization specialist Barco announced that it has acquired a 61% stake Norway-based projection supplier projectiondesign from PE firm Herkules Capital.  projectiondesign’s remaining shares are held by minority shareholders.  Terms of the deal were not disclosed.

Headquartered in Fredrikstad Norway, projectiondesign employs about 200 people and had sales of approximately €57m in 2011.  According to Barco CEO Erik Van Zele, the company is a “leader in market for projectors in the below 10k lumens range for professional markets. “

projectiondesign products are used in a variety of professional markets including training and simulation, visitor attractions, scientific visualization, corporate AV, and control rooms. Barco says that addition of projectiondesign to its portfolio creates a market leader in projection solutions for both large- and mid-venue markets, and advances Barco’s strategy to expand into the mid-segment of its target markets.

Barco also said that the deal will enables it to leverage its global sales channels, particularly in Asia and Latin America. projectiondesign has a strong presence in Northern Europe while Barco has strong sales coverage in Asia, Latin America and Europe.

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Related Content:

Press Release: Barco acquires majority share in Norway’s projectiondesign

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RealD Swings to a Loss in Q2 FY 2013

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Oct 29 2012

RealD said that its revenue for the second quarter of its 2013 fiscal year was $55m, down 38% versus the same period a year ago.

Licensing revenue in the quarter was $35m, down 33% versus last year. International markets generated 61% of license revenue, compared to 56% of license revenue in the second quarter of fiscal 2012.

Product and other revenue was $20m, down 44% versus last year. International markets generated 44% of product and other revenue, compared to 41% of product and other revenue in the second quarter of fiscal 2012.

The GAAP net for the quarter was $4.2m, or $0.08 per share, compared to GAAP net income of $18.9m, or $0.33 per diluted share, last year.

Although the company’s revenue in the quarter was higher than the consensus estimate of $47m, RealD missed on the bottom line expectation of a loss of $0.04 per share.

Adjusted EBITDA, a non-GAAP metric, was $13.8m for the quarter, down 69% versus the same period a year ago.

As of September 21, 2012, the company had deployed approximately 21,500 RealD-enabled screens, an increase of 15% compared to last year, and an increase of 800 screens, or 4%, compared to the previous quarter.

As of September 21, 2012, the company had approximately 12,300 domestic screens at approximately 2,700 domestic theater locations and approximately 9,200 international screens at approximately 2,600 international theater locations.

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Related Content:

Press Release: RealD Inc. Reports Financial Results for Second Quarter of Fiscal 2013

RealD Q2 2013 Earnings Call Transcript

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© Devoncroft Partners. All Rights Reserved.

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Barco Revenue Increases 13.2 Percent in Q3 2012

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Oct 29 2012

Barco reported that its sales during the third quarter of 2012 were €285m, an increase of 13.2% compared to the third quarter of 2011. For the first nine months of 2012, sales were €816m, up 10% compared to the same period last year.

The company said that all its operating divisions contributed positively to the company’s sales growth for both the third quarter and first nine months of 2012.

 

On a segment basis:

 

  • Revenue from entertainment was €123m, up 3.3% versus last year

 

  • Healthcare revenue was €50m, up 4.8% versus last year

 

  • Control room and simulation revenue was €58.3, up 33.7% versus last year

 

  • Defense and aerospace revenue was €28.6m, up 28.5% versus last year

 

  • Revenue from ventures was €25.1m, up 28.7 versus last year

 

Bookings in the quarter were €291.2m, an increase year-over-year of 14.8%. Barco’s order book as of 30 September, 2012 stood at €503.3m, up €1.8m compared to both 30 September 2011 and 30 June 2012.

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Related Content:

Press Release: Barco Trading update 3Q12

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Barco and Arts Alliance Media Announce €100m Program to Finance Digital Cinema Upgrades

broadcast technology market research | Posted by Joe Zaller
Mar 02 2012

Barco and Arts Alliance Media (AAM) announced that they have signed a Memorandum of Understanding to offer a financial leasing program to exhibitors across Europe to convert to digital cinema. The fund, named the Barco Leasing Program, has a provision for up to €100m and will offer financing packages to cinemas looking to convert from 35mm to digital. The offer is supported by ING Lease Belgium. It will be available to interested exhibitors of any size and will utilize AAM’s existing VPF agreements with all 6 Hollywood majors and nearly 100 local European distributors.

AAM will begin offering the program over the coming weeks to exhibitors across Europe with the funding available for the next 18 months, targeting 2,000 screens for conversion. Equipment will be supplied by Barco, who have installed over 25,000 DLP Cinema-based digital projectors worldwide, and maintenance and support will be provided by Arts Alliance Media, who currently support over 2,300 digital cinema systems from a dedicated Network Operations Centre in London.

Howard Kiedaisch, Chief Executive Officer of Arts Alliance Media, says: “One of the critical elements to getting any exhibitor converted to digital is procuring the necessary capital investment and we’re delighted to partner with our friends at Barco to offer a solution to exhibitors throughout Europe. With Europe already over 50% converted, the remaining cinemas who have not yet converted need to move quickly or risk being left behind and we’re encouraging all operators large and small to engage in dialogue with us.”

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Related Content:

Press Release: Arts Alliance Media and Barco announce €100m Digital Cinema leasing program

Barco’s Revenues Rise 16.1% in 2011

Reuters Article: Barco CEO to Step Down in 2013

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© Devoncroft Partners. All Rights Reserved.

Barco’s Revenues Rise 16.1% in 2011

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 09 2012

Barco announced that its revenue for the full year 2011 was €1.04Bn, an increase of 16.1% versus the full year 2010.   The company said all parts of the businesses with the exception of defense, air traffic control and the ventures as a group, grew during the year.

Order intake in 2011 was €1.09Bn, an increase of 10.7% versus last year.  The company said that BRIC countries together with Mexico, Japan, South-East Asia and Central Europe were among the best areas for growth in incoming orders.

The company’s net income for 2011 was €75.8m, up 74% versus 2010.

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On a geographic basis:

  • Revenue from the Europe, Middle East, Africa and Latin America (EMEALA) region was €444m, or 43.7% of total revenue.  EMEALA revenue grew 18.8% during 2011.

 

  • Revenue in North America contributed was €4347, or 33.3% of total revenue.  Sales in North America were up 8.6% versus 2010.

 

  • Sales in the Asia-Pacific region were €239.4m, or 23% of total revenue.  APAC revenue increased by 23% versus 2010.

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On a segment basis:

  • The Entertainment Division contributed €432.1m, an increase of 31.1% versus the previous year, driven by strength in the events market.  Barco also said that its renewed focus on the corporate AV segment has been “remarkably successful.”  The company said its entertainment business grew than 30% growth in the EMEALA region, almost 20% in North America and close to 50% in the APAC region. EBITDA in the Entertainment Division grew 6% to €63.8m, but EBITDA margins in the division dropped 3.5% due to substantial investment in R&D.

 

  • Sales in the Healthcare Division grew 10% to €192.5m, thanks to robust sales in both established markets as well as newer segments such surgical displays, dental imaging, and digital pathology. Barco said its Healthcare Division grew in all territories, with APAC growing 20% year-over-year.  Healthcare EBITDA for 2011 was €33.1m, up 16.4% versus last year.  Healthcare EBITDA margin increased from 16.2% to 17.2%.

 

  • Sales in the Control Rooms & Simulation division increased 16.1% to €214.3 in 2011, with the Europe and APAC regions each growing about 20%. Revenue for Simulation increased in the EMEALA and APAC regions but decreased in North America.  2011 EBITDA for the division €16.2m, up 9% versus last year, but EBITDA margin dropped from 8% to 7.5%.

 

  • Sales in the Defense and Aerospace division declined 1.7% to €115.8, despite a strong performance at the end of the year.  The EMEALA region grew its top line by 5.9%. The other two regions experienced negative growth Division EBITDA dropped 15% to €11.7m.

 

  • Revenue on the Ventures division was €88.2m, a decline of 4.2% versus the previous year, due primarily to weak sales in the APAC region.  EBITDA for the division was €5.5m versus and EBITDA loss of €17.5m last year.

 

Company president & CEO Eric van Zele said: “We are very pleased to see that Barco passed the ambitious billion euro mark. We progressed on many fronts and delivered on our promises for sustainable and profitable growth. Overall sales grew 16.1% year-on-year with Entertainment growing at 31.1%, Healthcare at 10% and Control Rooms & Simulation at 16.1%. Despite a very challenging macro-economic environment we not only succeeded in turning Barco around but also established global leadership positions in all of our core businesses. With EBIT margins moving up from 5.0% in 2010 to 7.5% in 2011 we further delivered on our promises related to profitability while our free cash generation of €81.2m illustrates good management of our working capital. End of December 2011 the net financial cash position of Barco stood at €61.1m compared to €8.9m a year earlier.”

 

 

Outlook for 2012

Barco issued the following statement about the coming year:

“With an eye on the future and realizing that the current economic environment is still very uncertain management believes that Barco’s momentum for profitable growth will be sustainable as the company continues to sharpen its focus on its core businesses and pursue alternative options for some other activities.”

 

 

 

Related Content:

Press Release:  Strong growth pushes Barco beyond 1 billion euro in sale

Barco FY 2011 Presentation to Equity Analysts

Previous Year: Digital Cinema, Medical Imaging Drive 40 Percent 2010 Revenue Increase at Barco

 

© Devoncroft Partners. All Rights Reserved.

 

 

RealD Delivers Strong Results in Q2, But Loss of Samsung Deal Crushes Stock

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Nov 03 2011

3D technology provider RealD reported that its net revenue for its second quarter of its 2012 fiscal year was $88m, up 35% from the same period a year ago.

Licensing revenue in the quarter was $52m, up 119% from last year.  License revenue increased to 59% of gross revenue during the quarter from 46% of gross revenue in the second quarter of fiscal 2011. 56% of licensing revenue in the quarter came from international markets, compared to 52% last year.

Product revenue for the quarter was $36m, a decline of 13% versus last year.  Product revenue decreased to 41% of gross revenue during the quarter from 54% of gross revenue in the second quarter of fiscal 2011. The company attributed the lower product revenue to an increasing number of international consumers returning to the cinema with RealD eyewear purchased at a previous RealD showing.

GAAP net income for the quarter was $18.9m versus a GAAP net loss of $5.1m last year.  Gross margins for the quarter were 48%, up from 21% last year.

On a non-GAP basis, the company’s “adjusted EBITDA” in the quarter was $44.4m, an increase of 169% versus last year.

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Loss of Samsung Deal

As part of the earnings announcement, RealD also disclosed that consumer electronics giant Samsung has decided not to proceed with a previous plan to build TVs using the RealD’s technology.

The company said in a statement: “ RealD today is announcing revised expectations for its license agreement with Samsung Electronics LCD Business. In May 2011, RealD and Samsung announced that panels featuring RealD 3D display technology were expected to be made available to consumer electronics manufacturers by early 2012. RealD has recently learned that Samsung’s initiative to manufacture panels under the RealD license agreement is not being pursued at this time. As a result, RealD is now pursuing other potential partners for its 3D display technology among consumer electronics panel manufacturers.”  This news sent the company’s shares down sharply on the day following the release of this news.

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RealD Screen Deployments

The company said that at the end of the quarter it had deployed approximately 18,700 RealD-enabled screens, an increase of 101% versus the same period a year ago, and an increase of 7% versus the previous quarter.  Of these deployments 59% are in the United States, with the remaining 41% in international locations.

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Related Content:

Press Release: RealD Inc. Reports Financial Results for Second Quarter of Fiscal 2012

Previous Quarter: RealD Inc. Reports Financial Results for First Quarter of Fiscal 2012

Previous Year: RealD Q2 2010: Revenue up 69%, Deployments up 24%, Losses Remain

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RealD Q1 2011 Revenue Declines 8%, Sinking Stock

broadcast technology market research, Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Aug 01 2011

3D technology licensing leader RealD announced that its revenue for its first quarter  of fiscal 2012 ended June 24, 2011 was $59.6m, a decrease of 8% versus the same  period a year ago, and up slightly versus the previous  quarter.

Licensing revenue in the quarter was $35.7m, an increase of  39% from the first quarter of fiscal 2011, and up 8% versus the previous quarter. Licensing revenue represented 60% of total revenue in the quarter.  International markets generated 58% of net license  revenue in the first quarter of fiscal 2012 compared to 35% of net license revenue in the first quarter of fiscal 2011.

Product revenue for the quarter was $23.9m, down 39% from the same period a year ago, and down 6% versus the previous quarter. The company attributed the decline in product revenue to “an increasing number of international consumers returning to the cinema with RealD eyewear purchased at  a previous RealD 3D showing.”

GAAP net income in the quarter was $9.6m, an increase of 226% versus the same period a year ago.

Gross margin increased to 59% from 28% in the first quarter of fiscal 2011 and reflects the higher mix of net license revenue and improved product and other gross profit referenced above.

Investors were unimpressed with the results.  RealD’s shares have dropped 22% since the company released its Q1 2011 earnings, and are now trading below the company’s IPO price.

 

3D Screen Deployments:

As of June 24, 2011, the company has deployed approximately 17,500 RealD-enabled screens, an increase of 133% from approximately 7,500 screens at June 25, 2010, and an increase of 2,500 screens, or 17%, from approximately 15,000 screens at March 25, 2011.  Domestic screens (U.S. and Canada) were approximately 10,300 and international screens were approximately 7,200 at June 24, 2011.

 

Related Content:

Press Release: RealD Inc. Reports Financial Results for First Quarter of Fiscal 2012

Barron’s Article: Harsh Reality Hits RealD

Bloomberg: RealD Slides Below IPO Price After First-Quarter Revenue Misses Estimates

Press Release: RealD Inc. Reports Financial Results for Fourth Quarter and Fiscal Year 2011

Bloomberg: RealD Slumps Most Since IPO as Analysts Question Appeal of 3-D Movies

RealD President Bows Out, Cashes In

Press Release: RealD Co-Founder Joshua Greer to Transition into Advisory Role and Remain on Board of Directors

RealD SEC filing detailing separation agreement between RealD and Joshua Greer

 

 

Barco Revenue Jumps 33 Percent in 1H 2011, But Says Digital Cinema Growth Is Slowing

broadcast technology market research, Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Jul 20 2011

Barco said that its revenue for the first half of 2011 was 490.3 million euro, a 33.1% year-on-year increase. There was growth in all divisions except for the Defense & Aerospace division. The highest growth was realized by the Entertainment and the Control Rooms & Simulation divisions. The top line of the Healthcare division and the Ventures increased with high single digit figures compared to the same period the year before.

Sales to Europe, Middle East, Africa and Latin America (EMEALA) represented 43% of consolidated sales, while 34% of sales were realized in North America and 23% in Asia Pacific. Compared to 1H10 sales were up 30.4% in absolute numbers in the EMEALA region, while they grew respectively with 34.8% and 36.1% in North America and the APAC region.

Order intake in 1H11 was 560.4 million euro. Compared to the same period the year before this is an increase of 8.8%, carried by the  Entertainment and the Healthcare divisions.

In order intake the APAC region realized 29% of total, compared to 34% for North America and 37% for the EMEALA region. The latter region had a decline of 9.2% in orders, while orders in North America and in the APAC region increased with 12.4% and 38.9% respectively.

 

Outlook:

Commenting on the remainder of 2011, the company said: “Although Barco’s progress has recently been carried predominantly by the growth momentum in the Entertainment and Healthcare divisions, management believes that all other divisions are well on the way to realize their corporate objectives. Even though growth in digital cinema will begin to level off in coming quarters, Barco’s progress is sustainable.  Barring any unexpected macro-economic turmoil 2011 will be a good year for Barco.”

 

Related Content:

Press Release:  Barco announced results for the six month period ended 30 June, 2011

Barco 1H 2011 earnings conference call investor presentation

More Broadcast Vendor M&A: EVS Sells XDC CineStore Digital Cinema Technology to Barco

Information about Barco’s Q4 and full year 2010 results is here.

 

 

 

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