Posts Tagged ‘Digital Cinema’

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

 

 

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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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RealD Posts Profit in Q4, Analysts Question of Appeal of 3D Movies

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Jun 13 2011

RealD, which licenses 3D technologies, announced that its revenue for the fourth quarter of its fiscal year was $58.5m, an increase of 6% versus the same period a year ago. The company posted GAAP net income of $4.5m in the quarter, versus a GAAP loss of $20.9m during the same period a year ago.

For the full fiscal year, the company had revenue of $246.1m, an increase of 64% versus the previous year.  Net loss for the year was $12.3m, versus a loss of $51.2m the previous year.

Despite RealD’s increasing revenue and profitability, investors sold off the stock on fears that 3D may not have the market traction that had been anticipated previously.  According to a Bloomberg article, shares in RealD fell the most since its initial public offering after analysts questioned executives about the appeal of the 3D format.

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Related Content:

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

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

RealD President Bows Out, Cashes In

RealD SEC filing detailing separation agreement between RealD and Joshua Greer

RealD Files Prospectus for $200m Secondary Stock Offering. All Proceeds Destined for Current Shareholders Rather than the Company Itself

Wall Street Journal Article: RealD Insiders Capitalize on IPO

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RealD President Bows Out, Cashes In

Uncategorized | Posted by Joe Zaller
Jun 01 2011

RealD, a global licensor of 3D technologies announced that company co-founder Joshua Greer will no longer serve as President of the Company effective July 15, 2011.

According to a filing with the Securities and Exchange Commission, Greer, who made tens of millions of dollars through RealD’s IPO and subsequent share sales, has entered into a consulting agreement with RealD that will pay him $275,000 to act as a strategic and technology advisor to the company.  He will also remain on the company’s board of directors.

 

Greer will also receive the following separation benefits:

 

  • cash severance of $450,000 (Greer’s annual base salary according to RealD’s S1 filing)

 

  • reimbursement from the Company for insurance coverage under COBRA for 18 months

 

  • a pro-rated cash Performance Bonus for fiscal year 2012 (to be paid no later than June 15, 2012), in an amount equal to 30% of 80% of Mr. Greer’s salary, computed assuming that Mr. Greer had remained as President of the Company through the end of fiscal year 2012; and

 

  • acceleration of a time-based vesting stock option for 105,000 shares granted to Mr. Greer on July 15, 2010

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Related Content:

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

RealD Files Prospectus for $200m Secondary Stock Offering. All Proceeds Destined for Current Shareholders Rather than the Company Itself

Wall Street Journal Article: RealD Insiders Capitalize on IPO

RealD S1 (filing with SEC)

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

Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
Mar 04 2011

Less than two weeks after Reuters reported that Barco is “seriously considering” new acquisitions to boost its growth, the Belgium-based projection vendor announced that it has acquired the CineStore activities of cinema solutions provider XDC.

Broadcast production and playout server vendor EVS is the majority shareholder in XDC.  

Terms of the deal were not disclosed.

This is perhaps not a surprising move for Barco, which recently announced strong financial results, driven in large part by the global expansion of digital cinema.  The company appears to be seeking to leverage its recent D-Cinema projection sales success into a more integrated provider of complete D-Cinema solutions.

Indeed, Barco says the acquisition will help it “move up in the value chain from digital projection supplier to provider of total cinema visualization solutions,” and that the CineStore team brings profound software knowhow and in-depth market knowledge of the digital cinema business.

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XDC’s CineStore products include:

  • Solo G3: a hybrid digital cinema server offering both JPEG 2000 and MPEG-2 play-back capabilities. It is used as Screen Management System (SMS). 

 

  • Audi: a system for digital to analogue conversion, external analogue audio source inputs and high quality signal isolation.

 

  • Plaza: a hardware and software suite that enables to fully manage a cinema multiplex from a single point.

 

Barco’s VP of Digital Cinema Wim Buyens said that adding CineStore’s skills and experience to Barco’s business will allow it to strengthen its market position.  However he added that the company is not seeking to become an integrator (and compete with its existing distribution channel). “We stand by our strategy not to be a VPF integrator. Instead, we will remain focused on supplying visualization technologies and products for the professional digital cinema community,” said Buyens. 

The acquisition of CineStore activities will be closed by the end of Q1 2011. 

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You can read the full Barco press release here.

Information about CineStore’s products is here.

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

The Reuters article about Barco’s M&A plans is here.

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

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 11 2011

Barco announced that its revenue for the full year 2010 was €897m, an increase of 40.6% versus 2009.   The company said its results were driven by a strong performance from its digital cinema, medical imaging and avionics divisions, which saw revenue increases of 154.8%, 59.1% and 61.4% respectively.

Orders for the year were up 58.3% to €978.3m versus 2009, and the company’s order book at the end of 2010 was €426.9m, up 29% versus the end of 2009.

The company’s net income for 2010 was €43.6m, a significant improvement on 2009 when it lost €59.9m. 

On a geographic basis, the largest revenue contributor was the Europe, Middle East, Africa and Latin America (EMEALA) region, which accounted for 42.7% of sales. North America contributed 35.6% of revenue, while 21.7% of sales came from Asia Pacific. Compared to 2009 sales grew respectively by 28.9%, 66.4% and 30.7%. 

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On a segment basis:

  • The Media & Entertainment and Simulation (MES) business posted revenue of €471.7, an increase of 53% versus 2009. Digital cinema shipments were up 154.8% in 2010.

 

  • Monitoring & Control and Medical business group (MCM) sales increased 27.6% to €335m versus 2009, with medical and avionics showing particularly strong sales growth.

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Company president & CEO Eric van Zele said that thanks to the cost cutting measures the company took in 2009, it had managed to weather the economic crisis return to profitable growth.

As part of its plans to sustain its growth, the company also said that it will regroup and recombine some operating divisions in to capture additional scale economies and to align organizational structure with strategy.  “We are pleased with the progress so far and are taking the next steps to strengthen Barco’s leadership in the various segments of our business. We will do whatever it takes to realize further profitable growth in the years to come,” said van Zele.

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Outlook for 2011

Barco issued the following statement about the coming year:

2011 will see Barco deploy the third phase of a strategic plan developed beginning 2009. Within the framework of this plan the company will fully adjust structure to strategy in the coming months. Barco will further increase focus on its core activities while simultaneously creating the necessary framework for its other businesses to fully embrace entrepreneurship and become important drivers of growth. Barco will also seek to establish strong geographic leadership in growth markets such as the BRIC countries. Sales and order intake of the BRIC countries are headed for 20% of total sales in 2011. 

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You can read the full Barco FY 2010 earnings press release here.

Barco’s presentation to equity analysts is here.

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RealD Losses Widen to $16.6m as Q3 Revenue Jumps 91%

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

RealD, a global licensor of 3D technologies, announced that its revenue for the third quarter of its fiscal year was $57.8m, an increase of 91% versus the same period a year ago, but down 11% from the previous quarter.

The company posted a net loss $16.6m during the quarter on a GAAP basis, compared to a GAAP net loss of $15.1m during the same period a year ago, and a GAAP net loss of $5.1m during the previous quarter.  However, the company said that on a non-GAAP basis, it achieved adjusted EBITDA of $16.9 million, an increase of 213% versus the same period a year ago, and up slightly from the adjusted EBITDA of $16.5m posted last quarter.

Along with the jump in revenue, RealD’s costs increased significantly during the quarter.  The company’s cost of revenue increased 63% to $51.6m, and its operating expenses more than doubled to $20.8m.

RealD continues to post impressive expansion numbers. During the quarter it deployed approximately 2,000 3D-enabled screens, bringing its total 3-D screen deployment to 11,300.  On a geographic basis, the company said it has deployed 6,900 domestic (United States and Canada) screens and 4,400 international screens. 

These updated screen deployment numbers represent an increase of 163% versus last year, and an increase of 22% versus the previous quarter.

Year to date, the company’s net revenue was $187.6 million, an increase of 99% versus the first nine months of the last fiscal year.   The company’s years to date operating expenses were $51.2m, an increase of 81% versus the first nine months of last year.

On a GAAP basis, RealD lost $16.8m during the first nine months of its fiscal year.  However the company said that on a non-GAAP basis (which excludes the impact of motion picture exhibitor option expense) it achieved net income of $17.3m, compared to a non-GAAP net loss $12.4m for the first nine months of its last fiscal year.  The company also said that its adjusted EBITDA (a non-GAAP measure) was $44.4m, compared to $11.5m for the first nine months of last year.

RealD said it ended the quarter with cash and cash equivalents of $35.5m.  During the quarter the company successfully completed a $200m secondary stock offering, but all proceeds went to company investors and insiders rather than the company itself. 

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You can read the full RealD Q3 earnings release here.

You can read information on RealD’s previous quarter (Q2) results here.

Information on the company’s $200m secondary stock offering is here.

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

broadcast industry technology trends, Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Nov 02 2010

3D technology provider RealD announced today that its net revenue for its second quarter as a public company was $65.3m, an increase of 69% versus the second quarter of last year.

The company recorded a GAAP net loss of $5.1m during the quarter, versus a GAAP loss of $5.4m during the same period a year ago.  However, the company said that its adjusted EBITDA (a non-GAAP measure) for the quarter was $16.5 million, compared to $3.9 million for the second quarter of fiscal 2010, an increase of 327%.

Revenue from product during the quarter accounted for 64% of revenue, with licensing revenue making up the additional 36%.  Product revenue increased 81.6% versus last year, while licensing revenue was up 51.8% versus the same quarter a year ago.  On the company’s conference call management pointed out that there were 8 films during the quarter that each provided at least $1m in licensing revenue, versus four such film a year ago.

The company said that at the end of the quarter it had deployed approximately 9,300 RealD enabled screens, an increase of 182% versus a year ago, and an increase of 24% versus the end of the previous quarter.  60% of the company’s deployments to date are in the United States and Canada, but international licensing revenue was greater than domestic revenue during the quarter.   The company said that it expects to deploy a further 1,800 – 2,200 screens during the third quarter of this fiscal year.

For first half of its fiscal year, the company reported net revenue of $129.8m, an increase of 102% versus the six months ended September 25, 2009.  Product and licensing revenue during the first six months of the year grew by 89% and 127% respectively, versus the same period a year ago.

GAAP net loss attributable to common stockholders for the six months ended September 24, 2010, was $169,000 compared to a GAAP net loss attributable to common stockholders of $15.3m for the six months ended September 25, 2009.

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You can read the full RealD Q2 earnings press release here.

The company’s earnings release from the previous quarter can be found here.

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Barco Q3 Sales Jump 50%, Driven by Digital Cinema, Medical

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Oct 27 2010

Barco announced that it sales in the 3rd quarter were €222.7m, an increase of more than 50% versus the same period in 2009. The company also said that it orders during the quarter jumped more than 50% compared to Q3 2009.

Sales from the Media, Entertainment and Simulation (MES) business unit accounted for 56% of revenue during the quarter.  Sales from the Monitoring, Control and Medical (MCM) business unit accounted for 44% of revenue during the quarter.

When compared to the same quarter in 2009, the company’s MES revenue grew by 64.6% to €124.4m, driven by strong demand for digital cinema projection solutions, while MCM revenue increased by 33.9%.

For the first nine months of 2010 Barco’s revenue was €591m, an increase of 29.2% versus 2009. 

Barco said that it closed its third quarter with an order book of €497.1m, an increase of 45.2% compared to the same quarter of the year before. The company’s orders for the year to date are €747.3m, an increase of 65% versus the first nine months of 2009.

The company also said that its EBIT margin in 3Q10 “progressed compared to the 3.0% margin of 1H10,” but did not disclose any specific figures. 

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You can read the full Barco Q3 trading update here.

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