Posts Tagged ‘digital out of home’

Broadcast Vendor M&A: Barco Buys X2O Media for C$21 Million as Part of Plan to Diversify Beyond Display and Projection

Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
Mar 19 2014

Digital signage provider X2O Media has been acquired by Barco for C$21m. The deal values Montreal-based X2O at a healthy 4X its 2013 revenue.

Barco says “X2O Media will be integrated in the Barco organization as a business venture, allowing it to continue the development of its platform technology, while leveraging its business growth from Barco’s worldwide sales and service presence.”

X2O Media was founded by serial entrepreneur David Wilkins who sold his previous company, VertigoXmedia, to Miranda Technologies for C$11 million in 2006.  The deal with Miranda excluded the digital signage business of VertigoX, which Wilkins re-launched as X2O Media.  Since that time, the company grew from 10 to 40 employees, and saw its revenue increase to C$5m by the end of 2013.

X2O was backed by Propulsion Ventures, which was also a backer of VertigoXMedia.

According to Barco CEO Eric Van Zele, part of the strategic rationale for X2O is to diversify Barco’s offering beyond display and projection technology.  Barco also says the X2O portfolio will allow it to better meet customer expectations regarding workflow and content management, while differentiating itself further from competition.

The deal also creates new market opportunities for X2O. According to Wilkins, X2O’s current market “is limited to North America, but benefiting from Barco’s global network we will be able to grow our activities worldwide.”

This is not Barco’s first foray into the digital signage arena, but the 4X revenue Barco is paying for X2O, is significantly more than its last deal.  In 2010, Barco acquired Belgium–based digital signage specialist dZine for what it said at that time was “less than 1 time annual sales of dZine excluding an earn-out provision over the next two and a half years.”  According to public records, dZine had revenue of €7.96m in 2010 ($10.5m based on 2010 for-x rate to Euro).  dZine posted revenue of €8.53m and €6.9m in 2011 and 2012, respectively, so it’s unclear whether the earn-out provision was ever triggered.

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Related Content:

Press Release: Barco acquires Montreal-based X2O Media, expanding its technology platform with advanced connectivity capabilities

Press Release (2012): X2O Media Raises Additional Equity Financing From Propulsion Ventures

Press Release (2010): Barco acquires digital signage specialist dZine

Press Release (2006): Miranda Technologies to Acquire VertigoXmedia

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© Devoncroft Partners 2009 – 2013. All Rights Reserved.

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Harris Broadcast Division Posts Strong Growth in Q4 2011, Returns to Profitability for Quarter and Full Year

broadcast technology market research, Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Aug 03 2011

Harris Corporation announced it Q4 and full year FY2011 results.

The company’s broadcast division is now part its Integrated  Network Solutions (INS) unit, which was created when Harris strategically realigned its business segments in March of 2011, so Harris no longer breaks out the specifics of its broadcast business.

However, the company did provide detail of some of its results, and according to Harris Corp. chairman and CEO Howard Lance the company’s broadcast business posted a “solid profit” for the 4th quarter of the company’s 2011 fiscal year.

Q4 revenue was $167.7m, an increase of 31% versus the same period a year ago (when it posted a loss of $21m), and an increase of 25% versus the previous quarter (when it turned a profit).  Lance attributed the strong performance to improved broadcast sales in international markets as well as growth in the new media market, including digital-out-of-home (DooH).

Broadcast communications orders for the 4th quarter were $152.1m up 37% versus the same period a year ago.  Significant deals closed in the quarter included a $16m contract from Turkmenistan TV for a full range of broadcast solutions from Harris.  The company also said that it was experiencing order growth in Latin America and Asia.

On the company’s conference call with equity analysts, Lance highlighted some of the company’s recent success in the DooH market.  During the fourth quarter, Harris installed its first digital signage system in the UK, at luxury retailer Harrods.  In the US, Harris is collaborating with Digital Display Networks and ABC to create what it says is one of the largest DooH advertising networks in the world, 7-Eleven TV.  Lance said that the system is already installed in more than 3,000 7-Eleven stores.

 

Full Year Results Exceed Guidance:

For the full fiscal year, Harris broadcast communications division had revenue of $553.8m, an increase of 14% versus its performance in fiscal 2010.  These results exceeded guidance that the company had issued for the division when it said it expected the broadcast division to break-even on full year revenue in region of $520m – $540m.

According to Lance, the broadcast division has shown “excellent growth” and has “vastly improved” over last year.  It was “profitable both for the quarter and for the fiscal year in total.”

 

 

Related Content:

Press Release: Harris Corporation Reports Solid Fiscal 2011 Fourth Quarter Results

Harris Corporation Q4 and Full Year FY 2011 Conference Call Transcript

Harris Corporation Q4 and Full Year FY 2011 Earnings Call Presentation

Harris Broadcast Communications Profitable in Q3 as Revenue Increases Nine Percent

Harris Says Broadcast Communications Business Improved Significantly in Q2

Harris Corporation Strategically Realigns Business Segments; Broadcast Communications Rolled into New “Integrated Network Solutions” Unit

Harris Broadcast Business Making a Comeback Thanks to Improved Market Condition and New Opportunities in Digital-Out-of-Home

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Harris Broadcast Communications Profitable in Q3 as Revenue Increases Nine Percent

broadcast industry technology trends, Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
May 03 2011

Harris Corporation announced its results for the third quarter of its fiscal year.

On an overall basis, the company’s revenue was $1.41Bn, an increase of 6% versus the same period a year ago.  However the company’s profit fell by almost 16%.

Harris Corporation’s full results are covered elsewhere.  This post looks specifically at the results of the company’s broadcast communications business.

This is the first quarter since Harris strategically realigned its business segments, and rolled the broadcast communications business into a newly created “Integrated Network Solutions” (ISN) business unit.

Now that Harris broadcast communications business is part of ISN, its performance in the sector is somewhat more opaque than in the past, with only top level numbers disclosed by the company.

Broadcast Communications revenue was $134.1m, an increase of 9% versus the same period a year ago, (when the company posted an operating loss of $5m on revenue of $123m), and an increase of 3% versus the previous quarter.

On the company’s conference call with equity analysts, Harris Corporation CEO Howard Lance called the performance of the broadcast business a “significant year-over-year improvement.” Lance went on to say that the Harris broadcast business turned a profit during the quarter and was still on track to achieve break even performance for the full year.

In guidance issued last quarter, Lance said that the Harris expects its broadcast division to break-even on full year revenue in region of $520m – $540m, a 7-11% revenue increase versus the actual results during the previous fiscal year.

Harris broadcast received several major orders during the quarter, including a $9m contract from a central-Asian broadcaster, and a digital-out-of-home / IPTV deal with Madison Square Garden in New York that will commence this summer and be completed in time for the 2013-13 season. The company also received orders during the quarter from Gray Television, Cox Broadcasting and CBS.

The Harris broadcast business accounted for 29% of the ISN division’s $463m revenue. The ISN business unit’s revenue increased 23% year-over-year, however most of this growth came via acquisition.  On an organic basis, ISN revenue was flat year-over-year.
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Related Content:

Harris Press Release: Harris Corporation Reports Fiscal 2011 Third Quarter Results

Transcript of Harris Q3 conference call with equity analysts

Harris Says Broadcast Communications Business Improved Significantly in Q2

Harris Corporation Strategically Realigns Business Segments; Broadcast Communications Rolled into
New “Integrated Network Solutions” Unit

Harris Broadcast Business Making a Comeback Thanks to Improved Market Condition and New Opportunities in Digital-Out-of-Home

Harris Q3 2010 Results for Broadcast Communications Division

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Harris Broadcast Business Making a Comeback Thanks to Improved Market Condition and New Opportunities in Digital-Out-of-Home

broadcast technology market research, Broadcast technology vendor financials | Posted by Joe Zaller
Mar 07 2011

Following a seven percent y/y jump in Q2 revenue and “significant improvements” in its broadcast business, Harris Broadcast Communications president Harris Morris said that the company’s broadcast business is making a comeback thanks to improving market conditions and a heightened focus on business growth drivers. 

Morris, who made the comments last week in an interview published by Reuters, also said that the company is pushing its technology into adjacent markets such as digital-out-of-home, even as the core broadcast business continues to improve.

Harris’s broadcast business has suffered over the past few years as media companies have reined in their technology spending in the face of the recession and a depressed advertising environment. 

However, for the first time in a long time Harris Corp, the $5.2Bn conglomerate and parent of the broadcast communications business, touted the improved performance of the broadcast business in their most recent quarterly earnings release.  According to company guidance, the broadcast communications division is projected to breakeven in 2011 on revenue of $520m – $540m.

As the broadcast business rebounds from the recession, Morris says the company will benefit from customers continuing their migration to HDTV operations, particularly in emerging markets such Brazil, Russia, India and China. 

In addition the core broadcast business; Harris is also focusing on new opportunities in adjacent markets, in particular “digital-out-of-home.  The company already counts McDonald’s, Harrods and the Marina Bay Sands casino as customers for its digital signage technology.  Last year Harris announced a deal with the Amway Center, home of the Orlando Magic basketball franchise.  More recently it landed a 10-year, $75m deal with 7-Eleven, which will put Harris digital signage technology into 6,200 retail locations, in conjunction with Digital Display Networks Inc.

This is clearly an area where the company sees continues growth.  “We’re pursuing literally dozens of deals right now across retail, food, entertainment and hospitality and live events venues,” Morris told Reuters.

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You can read the full Reuters article here.

Information about the Q2 results for Harris broadcast communications is here.

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