Posts Tagged ‘Digital Cinema’

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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Devoncroft Digest July 24, 2010 – Earnings Season Begins, More Broadcast M+A (and an IPO), Echolab Rumors

broadcast industry technology trends, broadcast industry trends, broadcast technology market research, Broadcast technology vendor financials, Broadcast Vendor Brand Research, Devoncroft Digest, Top Broadcast Vendor Brands | Posted by Joe Zaller
Jul 24 2010

The Devoncroft Digest is a semi-regular amalgamation of news items I’ve seen recently.  Here are a few of the things that have caught my eye recently.

Earnings Season Kicks Off for Broadcasters and Broadcast Tech Vendors:

Quarterly earnings are starting to roll in from both broadcasters and broadcast technology vendors.  For those who are on an annual fiscal year, it’s a chance to see how the first half of the year went, and to hear management thoughts on the second half of 2010.

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Broadcast Technology Vendor Earnings:

Avid reported their numbers for the second quarter. Sales for the quarter were $162.2m, an 8% y/y increase – and the company pointed out that this was the first quarter of y/y growth for both audio and video since 1997.  The company’s shares jumped on the news.

While discussing uses of cash on the company’s earnings call, Avid executives talked about the amount of cash used for the Euphonix acquisition.  I was not aware of the purchase price for Euphonix, but it turns out that according to an SEC filing, Avid paid 17.6m for Euphonix, including cash of $12.6m and cash of $5m.

For more on Avid’s results, here’s a link to a transcript of Avid’s Q2 earnings call, and an article from Barrons about the results.   

Speaking of Avid, Post Magazine’s Jonathan Moser recently published an interesting Q&A with Avid COO Kirk Arnold about present & future status of the company.  In my opinion, both Arnold and CEO Gary Greenfield have done a good job recently with this type of interview.  One of Avid’s strengths is their user community and the company is clearly working to communicate with their base.  Here’s another example.

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Barco reported strong results for the company’s Q2 and first half of 2010.  In the earnings press release, company President & CEO Eric Van Zele said that Q210 “Must have been our best quarter ever.”  Van Zele also said that Barco is “experiencing explosive growth in demand for our digital cinema projectors and are working very hard to deal with the supply chain issues this creates.”

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Storage vendor Isilon also reported their Q2 numbers this week, and they were pretty good.  The company’s Q2 revenues of $45.1m represented increases of 15% q/q and 56% y/y respectively. The company also had positive net income in the quarter.  Shares jumped 18% on the news.  With Isilon apparently firing on all cylinders and Omneon now part of Harmonic, the storage space is going to be interesting to watch over the next year or so.

IPTV provider KIT Digital published strong preliminary results for their Q2.  In an upbeat press release, the company said that its Q2 revenues of “at least $22.7m” were up by more than 110%.  The company also said that its EBITDA for the quarter would be at least $4 Million

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Broadcaster and Platform Operator Earnings:

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Broadcaster LIN TV reported 2Q revenues of 99.5m, which represents a 21% y/y increase.  The company’s earnings release highlighted the fact that digital revenues were up by 44% y/y, and that political revenues more than doubled versus last year.  Lin President and CEO Vincent Sadusky said: “Our results demonstrate continued, sustained improvement over 2009. Television advertising has experienced a strong recovery and our digital business, which now constitutes 15% of our total revenues, continues to grow and differentiate us as a local multimedia company.”

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According to industry website TVNewswCheck, The McGraw-Hill Companies reported that its Broadcasting Group’s revenue grew by 24% to $25.3 million in the second quarter compared to the same period last year. Increases in national, local and political advertising all contributed to the improved performance.  The company as a whole reported net income for the second quarter of 2010 increased by 16.4%, or $27.0 million, to $191.1 million. Revenue in the second quarter was up 0.6% to $1.5 billion.

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Media General reported that the company’s broadcast revenue rose 13% in the second quarter, driven by increases in automotive and political advertising (publishing revenues fell by 7%). The company’s digital revenues rose by 8% during the quarter.  The company issued upbeat guidance for its broadcast properties saying, that “Broadcast revenues in the third quarter are expected to increase more than 20 percent, mostly reflecting significant Political revenues.”

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Finally, DVD rental and streaming video provider Netflix reported its Q2 results this week.  Although the company’s subscriber, revenue and net income numbers all numbers increased, it was not enough for investors who were looking for higher sales revenues.  The stock tanked.

For more on Netflix, check out the take from website VideoNuze, who penned an interesting post called 5 Key Takeaways from Netflix’s Q2 ’10 Results.

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Broadcast M&A

Echolab Rumors Continue

Since Echolab was suddenly put into liquidation, there has been great speculation about what would happen to the company’s IPR – particularly the Atem production switcher line up.  Well if rumors are to be believed, Blackmagic Designs is set to announce that they have purchased the assets of Echolab.  This is information is not confirmed, but I have spoken to several people about it.  

As many know, Blackmagic made headlines earlier this year when they purchased color correction specialist Da Vinci.    Coincidentally, TVB Europe just published an article about how Blackmagic took Da Vinci’s $200,000+ products into a sub-$1,000 product for the Mac and kept all the functionality.   If this rumor is true, it will certainly be interesting to see what Blackmagic has in store for Echolab’s Atem product line.  Watch this space. 

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Vitec Multimedia (not to be confused with the Vitec Group) announced the purchase of the Focus Enhancements’ Systems Group.  In the press release announcing the deal, Philippe Wetzel, CEO of VITEC Multimedia said “In combination with our recent acquisition of Optibase, this acquisition furthers our objective to provide a complete line of advanced digital video solutions to our customers around the globe. With innovation at its core, the VITEC R&D division — now with more than 100 esteemed engineers — is uniquely positioned to deliver innovative solutions for a wide range of advanced digital video applications — managing the entire video process from source to display.

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Vizrt announced that it has completed the acquisition of Adactus by buying the additional 71% of the company that it did not already own

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Other Broadcast Technology Vendor News

Vizrt’s Chief Commercial Officer appears to have left the company.  According to a press release from online gaming firm 888, David Zerah has become the managing director of Dragonfish.  While at Vizrt Zerah spent seven years as EVP of worldwide sales before becoming CCO.  Vizrt has not yet announced a replacement.

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3D News

The official IBC blog had an interesting entry on 3DTV the other day, which says that 3D will probably only impact the industry in “small dimensions”.

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OTT Video News

As mentioned above, Netflix reported their Q2 revenues.

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NewTeeVee Reports that Redbox readying a streaming offering.  Streaming media expert Dan Rayburn says Redbox Won’t Challenge Netflix’s Streaming Service, Here’s Why

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Digital Cinema

According to the Wall Street Journal, Imax has signed an exclusive 2-year deal with privately held Laser Light Engines. The company says that the resulting laser-power projectors will deliver brighter images for digital cinema, which will be especially beneficial for 3D.

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3D News – RealD Goes Public

3D provider RealD went public this week in a $200m IPO, which raised 33% more than expected, a testament to the strong interest in all things 3D.  The company’s shares were up 22% on its first day as a public company.

The company’s 100+ page IPO documents are worth reading for an overview of the company’s financials as well as the state of the 3D and Digital Cinema Markets.  Files 100+ Page IPO Doc. Worth Reading for Financials and #3D Industry Overview. #3DTV #Broadcast http://bit.ly/bCanRM

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Market Research Note of the Week – Quality Rankings of Broadcast Technology Vendors

This article looks at how a global sample of several thousand broadcast professionals ranked broadcast technology vendors for one of the most important metrics for any technology company: quality.

The broadcast industry prides itself on the fidelity of its sound and images, so the perception of quality is a very important metric for broadcast technology vendors. Many vendors use quality as one of the key components of their market positioning.

To determine the market’s perception of the quality of broadcast technology vendors, respondents to the 2010 Big Broadcast Survey were asked to rank broadcast technology vendor brands for “quality” on a scale of one to 10, with 10 being best in the market and one being the worst.

As with the top 30 innovation rankings published earlier, this list contains a broad mix of vendors including both audio and video companies. There are also interesting similarities and differences in terms of the types of products produced, geographic location and company.

To read the full article, including analysis of the findings, click here http://bit.ly/cY2nZO

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