Posts Tagged ‘Harris Broadcast’

Harris Reports Q1 2012 Results, Says Broadcast Revenue Increasing

Broadcast technology vendor financials | Posted by Joe Zaller
Oct 27 2011

Harris Corporation reported results for the first quarter of its 2012 fiscal year.

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 the company no longer breaks out the specifics of its broadcast business.

Thus the information provided by the company about the broadcast business was scant compared to past earnings announcements.

Here’s what they did say:

Harris Corp. chairman and CEO Howard Lance said that the broadcast division it continues to see revenue growth in international regions: the South America, Middle East and Asia. In the company’s earnings presentation Harris said that broadcast was continuing to benefit from international demand.

Significant broadcast orders during the quarter, included $3 million from TV Azteca for the first live 3D transmissions throughout Mexico.

Harris also said it received a $3 million order from Svyaz Engineering, the company’s Russian manufacturing partner, with which it will begin local production of digital television transmitters. According to Harris, Russia is currently in the initial stages of its transition from analog to digital, and will this will ultimately include the replacement of 22,000 transmitters across the country. The Russian digital transition will take place over the next several years, and Harris believes it is well positioned to participate significantly in this revenue opportunity.

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Broadcast Business Impacted by Flooding in Thailand

On the conference call with equity analysts, Lance said the company “recently learned that one of our contract manufacturers located in Thailand has been impacted by the recent flooding. It’s really too soon for us to understand the extent of the impact and what impact it might have on the second quarter results in broadcast. We’re working feverishly to mitigate any impact. All of our finished goods have been moved out of Thailand, and our suppliers in the process of moving production and starting it at an alternate location.”

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Related Content:

Press Release: Harris Corporation Reports Fiscal 2012 First Quarter Results and Significantly Higher Orders

Harris Corporation Q1 FY 2012 Conference Call Transcript

Harris Corporation Q1 FY 2012 Earnings Call Presentation

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

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

Previous Year: Harris Broadcast Division Reports $9m Loss on Rising Orders for First Quarter of 2011 Fiscal Year

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Thoughts on the Grass Valley – PubliTronic Deal, Including Press Conference Slides

broadcast technology market research, Broadcast Vendor M&A | Posted by Joe Zaller
Oct 13 2011

Yesterday, Grass Valley announced that it has acquired Dutch Channel-in-a-Box (CiaB) vendor PubliTronic via an online press conference.  This in an interesting move for a number of reasons, and Grass Valley did a good job of explaining its rationalize for the transaction.

During the presentation Grass Valley showed a slide deck that outlined its reasons for buying PubliTronic, provided an overview of the CiaB market opportunity and laid out its strategic objectives for this space.

Grass Valley says the broadcast market is changing more rapidly than ever, and that it is working to position itself as the “trusted transformation expert,” which can provide the appropriate mix of hardware, software and services to broadcast customers facing unprecedented change.

Grass Valley says it wants to become “the premier video technology solutions company.” This plan includes software, services, differentiated products, moving “down market” where opportunities are greater, and moving into emerging markets where there is higher growth.

The company sees integrated playout as a prime example of a fast growing, but currently underserved market. During the press conference GV said that the CiaB space is one of the fastest growing areas of the broadcast market, and that the acquisition of PubliTronic will help it go after this space, while better serving the needs of its customers.

It will be interesting to see how Grass Valley executes on this deal and deploys the PubliTronic products (now rebranded as Grass Valley K2 Edge).

There’s no doubt that Grass Valley is one of the premier brands in the broadcast industry, but many of their products such as switchers, servers and routers are hardware based and used in live production and studio applications.

Conversely, the CiaB market is all about software, and some traditionally hardware-focused companies have had a difficult time making the transition to a more software-centric approach. Of course Grass Valley’s video servers are widely deployed in the playout space, and the company undoubtedly has extensive technical expertise in this area, so maybe the transition will be smooth.

While the purchase of a 32-person playout software company is not a “bet the company” move for Grass Valley, it’s still critically important for the company to get this acquisition right.  New CEO Alain Andreoli, made it clear at IBC that he (and new GV owner Francisco Partners) sees software and services as core to the company’s future success.  The PubliTronic deal is a significant step in this direction.

There’s no doubt that the PubliTronic product offering is very capable.  However, Grass Valley is far from alone in going after the CiaB market.  Miranda, Snell, Evertz, Playbox and VSN are all vying for leadership in this space, and there are rumors that both Harris and Harmonic (Omneon) will be throwing their respective hats into this ring before NAB 2012. Expect to be hearing a lot about integrated playout / CiaB over the next six months.

At the end of the press conference Grass Valley CEO Alain Andreoli said that this deal shows that Franscisco Partners is committed to building a new Grass Valley and that it’s putting its money where its mouth is in order to do so.  It’s going to be very interesting to watch
how this shakes out over the next year or two.

The slides from the Grass Valley – PubliTronic announcement press conference (or at least most of them) are shown below.  They are worth reading as they do a good job of explaining the market dynamics, Grass Valley’s strategy, and the PubliTronic product offering.

 

 

 

 


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Related Content:

More Broadcast Vendor M&A: Grass Valley Buys PubliTronic, Enters Integrated Playout / Channel-in-a-Box Market

Press Release: Grass Valley Extends Leadership in IT-based Playout Solutions with Acquisition of Integrated Playout Solutions Provider PubliTronic

Press Release: Grass Valley Announces New K2 Edge Automated, Multichannel, Integrated Playout Solution

Announcement Coming From Grass Valley

BC 2011 Trends: Cloud, Channel-in-a-Box, 3D

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More Broadcast Vendor M&A: Grass Valley Buys PubliTronic, Enters Integrated Playout / Channel-in-a-Box Market

broadcast industry trends, Broadcast technology channel strategy, broadcast technology market research, Broadcast Vendor M&A | Posted by Joe Zaller
Oct 12 2011

Grass Valley announced today that it has purchased PubliTronic, a Netherlands-based broadcast technology supplier.  Terms of the acquisition were not disclosed.

PubliTronic provides integrated playout or channel-in-box (CiaB) solutions for broadcast playout applications.  According to Grass Valley executives, CiaB solutions have been deployed by approximately 5% of the market today and represent “one of the fastest growing segments in broadcasting, [and is] expected to increase significantly over the next three years.”

PubliTronic’s CiaB product provides an integrated playout package featuring a video server, media management, automation, broadcast graphics and other master control functionality.  PubliTronic’s products will be incorporated into the Grass Valley product line-up and will be re-branded as the Grass Valley K2 Edge.

The acquisition of the PubliTronic product line complements the existing Grass Valley server product business and puts Grass Valley into the automated playout business, which is shaping up to be one of the next battlegrounds in the broadcast technology business.  It was certainly one of the most important trends at the recent IBC 2011 trade show.

With the purchase of PubliTronic, Grass Valley joins the growing list of broadcast vendors who are making major bets in this area.  In addition to Miranda, Evertz, Snell, Grass Valley, PlayBox and VSN; who are now all vying for leadership in this segment, I’ve heard rumors that other firms including both Harris and Harmonic (Omneon) could launch CiaB products by NAB 2012, making this both a hot topic and a very crowded space.

With most CiaB systems providing similar functionality, it will be important for Grass Valley to differentiate itself from its competition.  In a statement, the company sought to do this, saying: “What this acquisition brings to customers is much more than a simple “channel-in-a-box” solution. Our next-generation K2 Edge™ server is a sophisticated and very powerful multichannel, integrated, automated playout system that delivers benefits to our customers from day one.”

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Related Content:

Press Release: Grass Valley Extends Leadership in IT-based Playout Solutions with Acquisition of Integrated Playout Solutions Provider PubliTronic

Press Release: Grass Valley Announces New K2 Edge Automated, Multichannel, Integrated Playout Solution

Announcement Coming From Grass Valley

BC 2011 Trends: Cloud, Channel-in-a-Box, 3D

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Harris Corporation Names New President and CEO

Uncategorized | Posted by Joe Zaller
Oct 10 2011

Harris Corporation has appointed William Brown president and chief executive officer effective November 1, 2011. Brown succeeds current CEO Howard Lance, who announced in May 2011 his intention to retire when a successor was named. Lance will continue to serve as chairman, president and CEO through October 31, 2011, and will then serve as non-executive chairman of the Board until December 31, 2011.

Brown joins Harris from United Technologies Corporation where he held several senior leadership roles since he joined the company in 1997. During the past six months, as Senior Vice President, Corporate Strategy and Development, he has been responsible for the company’s global strategic planning and M&A activity.

“I am excited to join Harris at such an important time in the company’s history,” said Brown. “During the past decade Harris has transitioned into a diversified provider of ultra-reliable communications and information technologies to government agencies and commercial markets worldwide. With its strong financial position, robust pipeline of potential opportunities and well-defined areas for new market entry, the company is ideally positioned for further growth. I look forward to working with the company’s talented management team to build on the success it has achieved.”

Brown received bachelor of science and master of science degrees in mechanical engineering from Villanova University and a master of business administration degree from the University of Pennsylvania Wharton School.

 

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

Broadcast technology vendor financials | Posted by Joe Zaller
Mar 08 2011

Harris Corporation announced that it has strategically realigned its operating businesses to “provide increased market focus and address the fast-growing global market for integrated communications and information technology and services.”

Under the company’s previous structure, Harris had three operating divisions: RF Communications, Government Communications Systems, and Broadcast Communications.  Under the new structure Harris retains three business units, but has added a new division called Integrated Network Solutions (ISN), which includes the broadcast business.

In addition to broadcast communications, the new ISN segment includes the Harris IT Services, Harris CapRock Communications, Healthcare Solutions, and Cyber Integrated Solutions businesses (all of which were previously part of the Government Communications Systems segment).  

The company says that its new ISN segment will provide IT services, managed services, cyber integration, interoperability, imaging, and digital media management solutions to support government, energy, healthcare, broadcast, and enterprise networks.  It will build on the company’s strengths in established markets, while extending its reach into new markets, including healthcare, energy, cloud computing, sports, entertainment, and retail venues.  

Harris Corp. EVP and COO Dan Pearson has been named acting group president of the new segment. He had this to say about the new ISN business unit: “Commercial businesses and government customers around the globe are increasingly seeking total solutions – combining innovative technology with managed services.  With a flexible technology and managed services approach, Integrated Network Solutions is uniquely positioned to create tailored end-to-end solutions for customers seeking a trusted communications and IT partner.”

Harris says it will begin reporting financial results under the new segment structure effective with its third quarter of fiscal 2011.

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The full Harris strategic reorganization announcement is here.

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Related Content:

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

Harris Says Broadcast Communications Business Improved Significantly in Q2

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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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More Broadcast Vendor M&A: Harris Buys Malibu Media Platform from Spot Runner

Broadcast Vendor M&A | Posted by Joe Zaller
Feb 14 2011

Harris Corporation said today that its broadcast communications division has acquired the Malibu Media Platform from Spot Runner.  Terms were not disclosed.

The Malibu Media platform is an online media exchange that is designed to simplify the buying and selling of TV advertising.  Harris says it plans to transition the newly acquired technology into its broadcast products in order to enhance advertising buy-sell relationships for Harris media software.

Malibu enables cable networks, cable providers, satellite providers and stations to reach more buyers, sell more inventory and provide information to buyers across the life of a campaign. For agencies and advertisers, the system provides opportunities to find inventory faster and more efficiently, while offering enhanced strategic insights to clients. Harris also expects that Malibu will enhance advanced advertising processes for digital-out-of-home and advanced advertising models, including VOD and interactive advertising.

Harris broadcast communications division president Harris Morris said that the Malibu technology was complementary to his company’s existing media and advertising management software systems.  “We believe the longer term benefits it will bring to our clients to be substantial,” said Morris.

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You can read the full Harris announcement here.

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Harris Says Broadcast Communications Business Improved Significantly in Q2

broadcast industry technology trends, broadcast industry trends, Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Jan 26 2011

Harris Corporation today reported results for the second quarter of its fiscal year.  Overall, the company posted revenue of $1.44Bn.  This represents an organic revenue increase of 9% versus the previous year, and an increase of 18% when contributions from acquired companies are taken into consideration.

For the first time in many quarters, the company reported a strong improvement in its broadcast communications business. 

Revenue from the company’s broadcast communications division in Q2 was $130m an increase of 11% from the previous quarter, and an increase of 7% versus the same period a year ago. Orders in the quarter came in at $134m, down $139m in the previous quarter and $135m during the same period last year.

On an operating basis, the performance of the broadcast communications division does seem to be improving.  Although the company’s broadcast business posted an operating loss of $1m during the quarter, this result is significantly better than its operating loss of $9m during the previous quarter and an operating loss of $5m during the same period a year ago.

The company continues to restructure its operations, and took a $1m charge for these actions during the quarter.

For the first six months of the fiscal year revenue from the broadcast communications division was $251.6m, an increase of 7% versus the first half of last year.  The operating loss for the first half of the year was $9.4m, the vast majority of which was declared in the previous quarter.

During the company’s conference call with equity analysts, Harris president and CEO Howard Lance had positive things to say about the broadcast business. “Our broadcast business has improved and has the opportunity to contribute to earnings growth,” he said.  Lance also said that the broadcast business continued to show a number of encouraging signs including year-over-year revenue growth, a book-to-bill ratio of greater than 1:1 for the second consecutive quarter, and near break-even operating results.

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Guidance for the Harris Broadcast Business:

Lance provided forward looking guidance for the broadcast business saying that the company expects the division to break-even on full year revenue in region of $520m – $540m.  This guidance represents a 7-11% revenue increase versus the actual results during the previous fiscal year. 

It’s interesting to note that this guidance is higher than announced last quarter when Lance said that he expected full year revenue for the broadcast business to be in the region of $490m – $510m, with break-even performance. 

Last quarter Lance also said that the company expects losses in the broadcast segment will continue during the first half of the fiscal year, but that improving profitability will follow during the second half of the fiscal year. 

Given the results released today, this certainly seems to be the case.

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

A transcript of the Harris Q2 conference call is here.

You can read information about the company’s previous quarterly results here.

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