Posts Tagged ‘Harris’

Ranking Broadcast Technology Vendors Part 3 — The 2013 BBS Global Brand Opinion Leaders League Table

broadcast industry technology trends, broadcast industry trends, broadcast technology market research, Broadcast Vendor Brand Research, market research, Top Broadcast Vendor Brands | Posted by Joe Zaller
Aug 12 2013

This is the seventh in a series of articles about some of the findings from Devoncroft’s 2013 Big Broadcast Survey (BBS), a global study of broadcast industry trends, technology purchasing plans, and benchmarking of broadcast technology vendor brands. Nearly 10,000 broadcast professionals in 100+ countries took part in the 2013 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry. 

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This is the third post in a series of articles about how broadcast technology vendors were ranked and benchmarked on a variety of metrics by the respondents to the 2013 BBS.

The first two posts in this series described the 2013 BBS Overall Brand Opinion League Table, and the 2013 BBS Net Change in Overall Brand Opinion League Table.

These rankings show how the global sample of 2013 BBS respondents rated a variety of broadcast technology vendor brands in terms of their overall opinion of these vendors, and also how their opinions have changed over time.

A large number of brands were listed in the two previous ranking lists. Between these two sets of league tables, a total of 70 broadcast technology vendor brands were listed (out of a total of 151 brands included in the 2013 BBS (the complete list of brands included in the 2013 BBS can be found here).

There were 46 vendors in the in the 2013 BBS Overall Brand Opinion League Table (versus 48 in 2012), and 53 vendors in the 2013 BBS Net Change in Overall Brand Opinion League Table (versus 58 in 2012).

However, the brands in the Overall Opinion and Net Change of Opinion rankings were not always the same.  In fact, out of the 70 broadcast technology vendor brands that were listed in the previous two rankings, just 29 brands were listed in both sets of rankings, either globally or regionally.

We’ve called this list of the 29 brands listed in both the 2013 BBS Overall Opinion and Net Change of Opinion rankings the 2013 BBS Brand Opinion Leaders League Table. 

These vendors, shown below, are held in high regard today by broadcast technology buyers, and are also perceived to be getting better over time.

Please note that both audio and video brands are included in these rankings, and that the table below shown brands in alphabetical order, NOT in the order in which they were ranked in the study. 

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2013 BBS -- Brand Opinion Leaders League Table

 

 

There are a wide variety of companies on this list, including large and small firms; single product and multi-product firms; global and regional players; and audio and video technology providers.

What they have in common is strong brand recognition, and a dynamism that 2013 BBS respondents feel is making them even stronger.

 

Year-over-year changes to these rankings:

Twenty-two in the 2013 BBS Brand Opinion Leaders League Table were listed in the 2012 version of these rankings:

Adobe, Aja Video, Autodesk, Avid, Blackmagic Design, Canon, Cisco, Dolby, Evertz, EVS, Lawo, Neumann, Panasonic, Riedel, Rohde & Schwarz, RTW, Sennheiser, Shure, Snell, Sony, Tektronix, Yamaha

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The following seven companies in the 2013 BBS Brand Opinion Leaders League Table were not included in this ranking in in 2012

Adam, Angenieux, Fujinon, Solid State Logic, Soundcraft, Studer,  Wheatstone

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The following eight companies that were listed in the 2012 BBS Brand Opinion Leaders League Table are not included in the 2013 ranking:

Apple, Clear-Com, Genelec, Harmonic, Harris, Omneon, Schoeps, Wohler

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Brand Opinion Leaders by Product Categories

As shown in the chart below, the companies in the 2013 BBS Brand Opinion Leaders League Table make products in 23 of the 30 categories that we covered in the 2013 BBS, down from 25 product categories in 2012.

The top products for brand leaders are Audio Mixing Cosoles, Microphones, Audio Processing  and Monitoring, Graphics & Branding, Production Switchers, Signal Processing / Interfacing / Modular, and Video Editing.

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2013 BBS -- Brand Opinion Leaders -- Frequency Analysis of Product Categories

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The chart above has a good mix of audio and video products, as well as a mix of hardware and software products.

However, it is interesting to note that many of the most frequently cited product categories are audio-related.  Some vendors on this list, such as Adobe, Avid, Riedel, and Sony, are listed in both audio and video product categories in the 2013 BBS.  Other vendors are listed in only audio categories.  These include Adam, Dolby, Lawo, Neumann, RTW, Sennheiser, Shure, Solid State Logic, Soundcraft, Studer, Wheatstone, and Yamaha.

It is also useful to look at the number of product categories provided by each vendor in the Global Brand Opinion Leader League Table.  After all, larger companies often make more products and are consequently used in more places than their smaller counterparts.

The table below shows the number of product categories that each brand in this ranking produces (as defined by the segmentation used in the 2013 BBS).

 

2013 BBS -- Brand Opinion Leaders -- Frequency Analysis

 

 

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While there are several brands on this list that appear in many product categories, the vast majority produce only one or two types of products.  Indeed out of the thirty brands in this table, sixteen brands  appear only once.

Keep in mind that companies who produce only one type of product are not necessarily small.  There are some very large companies on the list above who appear in just one 201 BBS category.

It turns out that to fully understand what drives brand opinion and brand leadership, one needs to look at the factors that drive and influence these perceptions.  This includes the company’s reputation for things like innovation, reliability, quality, value and great customer service.

These metrics will be covered in future posts.

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Related Content:

The 2013 Big Broadcast Survey (BBS) – overview of available reports, including covered brands and product categories

Largest Ever Study of Broadcast Market Reveals Most Important Industry Trends for 2013

Tracking the Evolution of Broadcast Industry Trends 2012 – 2013

Analyzing Where Money is Being Spent in the Broadcast Industry – The 2013 BBS Broadcast Industry Global Project Index

Broadcast Technology Products Being Evaluated for Purchase in 2013 – 2014

Devoncroft Partners: 2013 Broadcast Industry Market Research Findings

Ranking Broadcast Technology Vendors Part 1 – The 2013 BBS Overall Brand Opinion League Table

Ranking Broadcast Technology Vendors Part 2 – The 2013 BBS Net Change of Overall Brand Opinion League Table

Previous Year: The 2012 BBS Global Brand Opinion Leaders League Table

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© Devoncroft Partners 2009 – 2013. All Rights Reserved.

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Ranking Broadcast Technology Vendors Part 2 – The 2013 BBS Net Change of Overall Brand Opinion League Table

broadcast industry technology trends, broadcast technology market research, Broadcast Vendor Brand Research, market research, Top Broadcast Vendor Brands | Posted by Joe Zaller
Aug 05 2013

This is the sixth in a series of articles about some of the findings from Devoncroft’s 2013 Big Broadcast Survey (BBS), a global study of broadcast industry trends, technology purchasing plans, and benchmarking of broadcast technology vendor brands. Nearly 10,000 broadcast professionals in 100+ countries took part in the 2013 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry. 

 

Previous articles about the 2013 BBS discussed the most important broadcast industry trends, how the relative commercial importance of broadcast industry trends have changed over time, where money is currently being spent in the broadcast industry, broadcast technology products being evaluated for purchase in 2013 and 2014, and the 2013 BBS Overall Brand Opinion League Table.

 

This is the second in a series of posts about how broadcast technology vendors were ranked and benchmarked on a variety of metrics by the respondents to the 2013 BBS.

The first post in this series described the 2013 BBS Overall Brand Opinion League Table, which shows how 2013 BBS respondents ranked broadcast vendor brands.

This post looks at how the global sample of broadcast professionals who participated in the 2013 BBS ranked their Net Change of Overall Opinion of the 151 broadcast technology vendors we covered in the study.

 

Net Change of Overall Opinion

While it’s good news for any vendor to achieve a good “overall opinion” ranking, this metric is somewhat one-sided because it relies solely on the positive opinions of respondents.

In order to get a better understanding of how broadcast technology vendor brands are perceived, it is necessary to look at both the positive and negative opinions of brands. It is also necessary to take into account how these opinions have changed over time.

Once this information has been collected, we use it to create the Net Change of Overall Opinion Ranking, a metric that demonstrates which brands are perceived as getting better, and which are in decline, on an overall basis. Net Change in Overall Opinion provides a more balanced view each brand because it takes into account both the positive and negative perceptions of brands, along with how these opinions have changed over time.

An explanation of how these results were calculated can be found at the end of this article.

The complete list of vendor brands covered in the 2013 BBS is here.

 

The Net Change in Overall Opinion findings from the 2013 BBS are shown below in two ways:

  • An overall industry “league table” that shows the 30 highest ranked vendors for the metric “Net Change of Overall Opinion.”  The data in this chart is broken out globally and regionally.

 

  • An analysis of the “frequency” of appearance of each vendor in the Net Change of Overall Opinion league table

 

The top 30 ranked brands for Net Change of Overall Opinion are shown below for both the global sample of all respondents as well as for all respondents in each of the geographic regions.

When reading these results, please keep the following in mind.

 

Both audio and video brands are included in these rankings, and all response data shown herein is from the global sample of from all 2013 BBS participants, regardless of organization type, size, geographic location, or size of budget; and that actual results in the BBS Brand report may be different.

Please note that inclusion of any brand in any cut of the data shown the tables in this article is dependent on available sample size.  The minimum sample size for inclusion in these charts is 30 respondents per cut of the data. Therefore it is possible that a highly regarded brand was excluded from these findings based on sample size.

In all cases, these results are shown in alphabetical order, NOT in the order in which they were ranked by respondents to the study.


The 2013 BBS Net Change in Overall Opinion League Table:

2013 BBS -- 2013 BBS Net Change of Overall Opinion

 

 

A total of 53 broadcast technology vendor brands are included in this table (versus 59 in 2012 and 51 in 2011), illustrating the geographic variation of opinion. Analysis of these results shows that are some clear market leaders on a global basis, while others are strong on a regional basis.

It’s useful to understand how often each brand appears in the 2013 BBS Net Change in Overall Opinion League Table.

This is shown below, along with the equivalent data from both 2012 and 2011 for comparison.

 

Frequency of appearance of brands in the 2013 BBS Net Change in Overall Opinion League Table:

  • 10 brands appear four times (compared to 9 brands in 2012 and 13 brands in 2011), meaning they were ranked in the top 30 globally and in each geographic region

 

  • 13 brands appear three times (compared to 13 brands in 2012 and 10 brands in 2011)

 

  • 11 brands appear two times (compared to 11 brands in 2012 and 9 brands in 2011)

 

  • 19 brands appear one time (compared to 26 brands in 2102 and 19 brands in 2011).  This illustrates a fragmentation of opinion  about many brands based on geography

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Brands appearing four times in the 2013 BBS Net Change of Overall Opinion League Table:

 

  • 2013 BBS: Adobe, Aja Video, Autodesk, Blackmagic Design, Canon, Evertz, Panasonic, Riedel, Rohde & Schwarz, Sennheiser

 

  • 2012 BBS: Adobe, Avid, Blackmagic Design, Canon, Harmonic, Panasonic, Riedel, Sennheiser, Sony

 

  • 2011 BBS: Adobe, Aja Video, Apple, Blackmagic Design, Canon, Cisco, Genelec, Omneon, Panasonic, Riedel, Sennheiser, Sony, Tektronix

 

 

Brands appearing three times in the 2013 BBS Net Change of Overall Opinion League Table:

  • 2013 BBS: AmberFin, Angenieux, ateme, Cisco, Elemental Technologies, EVS, Harmonic, NewTek, Ross Video, Sony, Telestream, Vizrt, Wide Orbit

 

  • 2012 BBS: Aja Video, Apple, Autodesk, Digital Rapids, EVS, Front Porch Digital, NewTek, Omneon, Phabrix, Rhozet, Ross Video, Vizrt

 

  • 2011 BBS: Ateme,  Evertz, EVS, Harmonic, Net Insight, Rhozet, Rohde & Schwarz, Ross Video, Shure, Vizrt

 

 

Brands appearing two times in the 2013 BBS Net Change of Overall Opinion League Table:

 

  • 2013 BBS: Adam, Ensemble, Front Porch Digital, Lawo, Net Insight, Neumann, Nevion, Phabrix, Screen Service, Snell, Solid State Logic

 

  • 2012 BBS: AmberFin, ateme, brightcove, Cisco, Gigawave, Net Insight, Rohde & Schwarz, Screen Service, Tektronix, Telecast, Wohler

 

  • 2011 BBS: AKG, Digital Rapids, Dolby, Ensemble,  Front Porch Digital, Lawo, Telestream, TVIPS, Wohler

 

 

Brands appearing once in the 2013 BBS Net Change of Overall Opinion League Table:

  • 2013 BBS: arvato / S4M, Avid, Axon, Digital Rapids, Dolby, Fujinon, Linear Acoustic, On-Air (Oasys), Ooyala, RTW, Shure, Soundcraft, Studer, Tektronix, Telecast, TVIPS, Wheatstone, Xen Data, Yamaha

 

  • 2012 BBS: Aspera, Axon, Calrec, Clear-Com, Dolby, Elemental Technologies, Ensemble, Envivio, Evertz, Genelec, Harris, Isilon Systems / EMC, Kaltura, Kit Digital, Lawo, Neumann, PubliTronic / Grass Valley, RTW, Schoeps, Shure, Snell, Telestream, Wheatstone, Wide Orbit, Wowza, Yamaha

 

  • 2011 BBS: AmberFin, Audio-Technica, Avid, Fujinon, Grass Valley, Harris, Inlet Technologies, Linear, Linear Acoustic, Miranda, MSA Focus, Nevion, Playbox, PubliTronic, Schoeps, Screen Service, Solid State Logic, Telecast, Yamaha

 

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Frequency Analysis of the Brands in the in the 2013 BBS Net Change of Overall Opinion League Table:  

In order to provide a better understanding of which brands were most highly ranked in each geographic region, the data has been provided in the table below, which shows the global and regional performance for each brand in the top 30 ranking of overall opinion.

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2013 BBS -- 2013 BBS Net Change of Overall Opinion -- Frequency Analysis

 

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This frequency analysis chart shows that there are some interesting geographic variations in the data. Here’s a closer look at how brands appeared by geography:

 

Appearing only in the global ranking of the 2013 BBS Net Change of Overall Opinion League Table

Four brands achieved a top 30 ranking in the 2013 BBS Net Change of Overall Opinion league table, despite not being listed in the top 30 of any of the three geographic regions.  This may be a function of sample size.  As discussed above, there is a minimum sample size requirement for inclusion in each cut of the data presented in these chart, and the global ranking, by definition, has the largest overall sample.

  • Ensemble, On-Air Systems, Ooyala, Xen Data

 

Appearing only in one region of the 2013 BBS Net Change of Overall Opinion League Table

The following  brands appear in one regional category of the 2013 BBS Net Change of Overall Opinion League Table, but do not appear in the global ranking:

  • Arvato/S4m, Avid, Digital Rapids, Dolby, Fujinon, Linear Acoustic, RTW, Shure, Soundcraft, Studer, Tektronix, Telecast, T-VIPS, Yamaha

 

Appearing only in the EMEA region in the 2013 BBS Net Change of Overall Opinion League Table

  • Arvato/S4m, Axon, RTW

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Appearing only in the Asia-Pacific region in the 2013 BBS Net Change of Overall Opinion League Table

  • Avid, Digital Rapids, Dolby, Fujinon, Shure, Soundcraft, Studer, Tektronix, Yamaha

 

Appearing only in the Americas region in the 2013 BBS Net Change of Overall Opinion League Table

  • Telecast, T-VIPS, Wheatstone

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How These Results Were Calculated

No company is perfect, and the brands we measured in the 2013 BBS are no different.  All brands in the 2013 BBS had both positive (got better) and negative (got worse) connotations associated with them.  There were also are significant percentage of respondents who said their opinion of a brand had “stayed the same.”

2013 BBS participants were asked to rank their opinion of broadcast technology vendor brands on a scale of 1-10 — with 10 being best in the market, and 1 being worst in the market.

We then asked respondents whether their opinion of these brands has changed over the last few years – specifically whether they feel their opinion of each brand has “improved,” “declined” or “stayed the same.”

The Net Change in Overall Opinion for each brand was then calculated by subtracting the percentage of respondents who said a brand “got worse” from the percentage of respondents who said their opinion of a brand had “got better,” while ignoring the “stayed the same” responses.

This “change of opinion data” provides a more comprehensive view of how each brand is perceived by the market because it takes into account positive and negative perceptions.

 

 

Please note that inclusion of any brand in the tables in this article is dependent on available sample size.  The minimum sample size for inclusion in the tables shown herein is 30 respondents per cut of the data. Therefore it is possible that a highly regarded brand may have been excluded from any or all of the tables in this article due to insufficient sample size.

Also, please keep in mind when reviewing this information that all data these charts are presented in alphabetical order, NOT in the order brands were ranked by respondents to the 2013 BBS.

 

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The information in this article is based on select findings from the 2013 Big Broadcast Survey (BBS), a global study of broadcast industry trends, technology purchasing plans, and benchmarking of broadcast technology vendor brands. Nearly 10,000 broadcast professionals in 100+ countries took part in the 2013 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry. The BBS is published annually by Devoncroft Partners.

Unless otherwise specified, all data in this article measures the responses of all non-vendor participants in the 2013 BBS, regardless of factors such as organization type, organization size, job title, purchasing and geographic location.  Please be aware that responses of individual organization types or geographic locations may be very different. Granular analysis of these results is available as part of various paid-for reports based on the 2013 BBS data set. For more information about this report, please contact Devoncroft Partners.

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Related Content:

The 2013 Big Broadcast Survey (BBS) – overview of available reports, including covered brands and product categories

Largest Ever Study of Broadcast Market Reveals Most Important Industry Trends for 2013

Tracking the Evolution of Broadcast Industry Trends 2012 – 2013

Analyzing Where Money is Being Spent in the Broadcast Industry – The 2013 BBS Broadcast Industry Global Project Index

Broadcast Technology Products Being Evaluated for Purchase in 2013 – 2014

Devoncroft Partners: 2013 Broadcast Industry Market Research Findings

Ranking Broadcast Technology Vendors Part 1 – The 2013 BBS Overall Brand Opinion League Table

Previous Year:  The 2012 BBS Net Change of Overall Brand Opinion League Table

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© Devoncroft Partners. All Rights Reserved.

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Ranking Broadcast Technology Vendors Part 1 – The 2013 BBS Overall Brand Opinion League Table

broadcast industry technology trends, broadcast industry trends, broadcast technology market research, Broadcast Vendor Brand Research, Top Broadcast Vendor Brands | Posted by Joe Zaller
Jul 10 2013

This is the fifth in a series of articles about some of the findings from Devoncroft’s 2013 Big Broadcast Survey (BBS), a global study of broadcast industry trends, technology purchasing plans, and benchmarking of broadcast technology vendor brands. Nearly 10,000 broadcast professionals in 100+ countries took part in the 2013 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry. 

Previous articles about the 2013 BBS discussed the most important broadcast industry trends, how the relative commercial importance of broadcast industry trends have changed over time, where money is currently being spent in the broadcast industry, and broadcast technology products being evaluated for purchase in 2013 and 2014.

 

How 2013 BBS Participants Ranked Broadcast Technology Vendors

This is the first in a series of posts about how broadcast technology vendors were ranked and benchmarked on a variety of metrics by the respondents to the 2013 BBS.

Each year, as part of the Big Broadcast Survey (BBS), we ask a global sample of broadcast professionals to rank a variety of technology vendor brands on a wide range of metrics.

We use this information to create a series of reports, which through benchmarking and industry “league tables” provides a view as to how each vendor is positioned in the market relative to the industry as a whole, as well as against their direct competitors.

This post looks at how the global sample of broadcast professionals who participated in the 2013 BBS ranked their overall opinion of the 151 broadcast technology vendors we covered in the study.

An explanation of how these results were calculated can be found at the end of this article. The complete list of vendor brands covered in the 2013 BBS is here.

 

Research findings are displayed in two ways in this article:

  • An overall industry “league table” that shows the 30 highest ranked vendors for the metric “overall opinion.”  The data in this chart is broken out globally and regionally

 

  • An analysis of the “frequency” of appearance in the “overall opinion league table”

 

The top 30 ranked brands for overall opinion are shown below for both the global sample of all respondents as well as for all respondents in each of the geographic regions.

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Please note that in all cases, these results are shown in alphabetical order, NOT in the order in which they were ranked by 2103 BBS participants.      

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2013 BBS -- 2013 BBS Overall Brand Opinion League Table (smaller)

 

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A total of 46 broadcast technology vendor brands are included in this table, (versus 48 in 2012 and 43 in 2011), illustrating the geographic variation of opinion, which will be discussed later.

In terms of frequency of appearance in the above ranking:

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  • 17 brands appear four times, meaning they were ranked in the top 30 globally and in each of the three geographic regions.  For comparison, in the 2012 BBS (when we covered 152 brands) there were 15 brands that appeared in the top 30 globally and in each of the 3 regions.

 

  •  9 brands appear three times, versus 10 brands that appeared three times last year.

 

  • 5 brands appear two times, versus 7 brands that appeared two times last year. 

 

  • 15 brands appear one time, which demonstrates that some brands are strongest in one geographic area. In the 2012 BBS, 16 brands appeared one time.

 

Analysis of the data shows that are some clear market leaders on a global basis, while others are strong on a regional basis.

A breakdown of how many times each company appears in the ranking shows how many times each brand appears in the chart above.

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Brands appearing four times in the 2013 BBS Overall Brand Opinion League Table: 

The following brands are listed four times in the 2013 BBS Overall Brand Opinion League Table, meaning that research participants ranked them in the top 30 for overall opinion globally, as well as in each of the three geographic regions:

  • Adobe, Aja Video, AKG, Blackmagic Design, Canon, Cisco, Dolby, Genelec, Neumann, Panasonic, Rohde & Schwarz, Sennheiser, Shure, Solid State Logic, Sony, Studer, and Tektronix

 

Although many of these brands also appeared four times in the BBS Overall Brand Opinion League Table last year, there are also several changes to the composition of this list.

The following brands that appear in all four categories (global, EMEA, APAC, Americas) in the 2013 BBS Overall Brand Opinion League Table were listed fewer than four times in the 2012 BBS Overall Brand Opinion League Table. The numbers shown in parentheses show the number of times each brand was listed in the BBS Overall Brand Opinion League Table last year, and the year-over year change:

  • Aja Video (2x, +2), Blackmagic Design (1x, +3), Rohde & Schwarz (3x, +1), Solid State Logic (2x, +2), Studer (2x, +2)

 

The following brands were listed in all four categories in the 2012 BBS Overall Brand Opinion League Table, and appear fewer than four times in 2013:

  • Apple, Avid, Schoeps

 

 

Brands appearing three times in the 2013 BBS Overall Brand Opinion League Table: 

The following brands are listed three times in the 2013 BBS Overall Brand Opinion League Table.

The numbers shown in parentheses show the number of times each brand was listed in the BBS Overall Brand Opinion League Table last year, and the year-over year change:

  • Angenieux (3x, no change), Avid (4x, -1), Clear-Com (3x, no change), EVS (1x, +2), Fujinon (3x, no change), JBL (3x, no change), Schoeps (4x, -1), Snell (2x, +1), Yamaha (3x, no change)

 

The following brands were listed in three categories in the 2012 BBS Overall Brand Opinion League Table, and appear fewer than three times in 2013:

  • Autodesk, beyerdynamic, Ikegami, Wohler

 

 

Brands appearing two times in the 2013 BBS Overall Brand Opinion League Table:

The following brands are listed two times in the 2013 BBS Overall Brand Opinion League Table.

The numbers shown in parentheses show the number of times each brand was listed in the BBS Overall Brand Opinion League Table last year, and the year-over year change:

  • Apple (4x -2), Autodesk (3x, -1), beyerdynamic (3x, -1), Mackie (+2), Soundcraft (+2)

 

The following brands were listed in two categories in the 2012 BBS Overall Brand Opinion League Table, and appear fewer than two times in 2013:

  • Electro Voice, Grass Valley, RTW

 

 

Brands appearing one time in the 2013 BBS Overall Brand Opinion League Table:

The following brands are listed one time in the 2013 BBS Overall Brand Opinion League Table.

The numbers shown in parentheses show the number of times each brand was listed in the BBS Overall Brand Opinion League Table last year, and the year-over year change:

  • Adam (no change), Audio-Technica (+1), Barco (+1), Evertz (no change), Grass Valley (2x, -1), HP (no change), Ikegami (3x, -2), Lawo (no change), Leader (+1), NEC (no change), Riedel (no change), RTS Intercom Systems (no change), RTW (2x, -1), Wheatstone (+1), Wohler (3x, -2)

 

The following brands were listed in one category in the 2012 BBS Overall Brand Opinion League Table, and are not listed in 2013:

  • DK Technologies, Harmonic, Harris, Omneon (not covered in 2013 BBS), Salzbrenner Stagetec, Telex, Thomson

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Frequency Analysis of the Brands in the in the 2013 BBS Overall Brand Opinion League Table:  

The table below, which shows the global and regional performance for each brand in the top 30 ranking of overall opinion, provides a better understanding of where each brand was highly ranked for overall opinion.

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2013 BBS -- 2013 BBS Overall Brand Opinion League Table Frequency Analysis (smaller)

 

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The frequency chart shows some interesting geographic variations in the data, which is detailed below.

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Appearing in the top 30 “overall opinion” ranking globally + one region

Three brands achieved a top 30 ranking globally, despite being in the top 30 of only one out of the three geographic regions.

  • Apple, Autodesk, beyerdynamic

 

Appearing in the top 30 “overall opinion” ranking in one region

The following 15 brands did not make the top 30 in the global league table of overall opinion, but they did appear in the top 30 overall opinion ranking in one of the geographic regions:

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Appearing in the top 30 “overall opinion” ranking only in EMEA

  • Barco, Lawo, Riedel, RTW

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Appearing in the top 30 “overall opinion” ranking only in Asia-Pacific

  • Audio-Technica, Evertz, HP, Leader, NEC

 

Appearing in the top 30 “overall opinion” ranking only in the Americas

  • Adam, Grass Valley, Ikegami, RTS Intercom Systems, Wheatstone, Wohler

 

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How These Results Were Calculated

2013 BBS participants were asked to rank their opinion of broadcast technology vendor brands on a scale of 1-10 — with 10 being best in the market, and 1 being worst in the market.

This data was then aggregated and averaged in order to generate the global score for each brand based on these responses. In order to create the regional scores, this data was broken out geographically based on the location of the respondent.

The top 30 brands for each of the four ranking lists (global, EMEA, Asia-Pacific, Americas) was sorted by alphabetical order to create the tables shown in this article.

Please note that inclusion of any brand in the tables in this article is dependent on available sample size.  The minimum sample size for inclusion in the tables shown herein is 30 respondents per cut of the data. Therefore it is possible that a highly regarded brand may have been excluded from any or all of the tables in this article due to insufficient sample size.

Also, please keep in mind when reviewing this information that all data these charts are presented in alphabetical order, NOT in the order brands were ranked by respondents to the 2013 BBS.

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The information in this article is based on select findings from the 2013 Big Broadcast Survey (BBS), a global study of broadcast industry trends, technology purchasing plans, and benchmarking of broadcast technology vendor brands. Nearly 10,000 broadcast professionals in 100+ countries took part in the 2013 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry. The BBS is published annually by Devoncroft Partners.

Unless otherwise specified, all data in this article measures the responses of all non-vendor participants in the 2013 BBS, regardless of factors such as organization type, organization size, job title, purchasing and geographic location.  Please be aware that responses of individual organization types or geographic locations may be very different. Granular analysis of these results is available as part of various paid-for reports based on the 2013 BBS data set. For more information about this report, please contact Devoncroft Partners

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Related Content:

The 2013 Big Broadcast Survey (BBS) – overview of available reports, including covered brands and product categories

Largest Ever Study of Broadcast Market Reveals Most Important Industry Trends for 2013

Tracking the Evolution of Broadcast Industry Trends 2012 – 2013

Analyzing Where Money is Being Spent in the Broadcast Industry – The 2013 BBS Broadcast Industry Global Project Index

Broadcast Technology Products Being Evaluated for Purchase in 2013 – 2014

Devoncroft Partners: 2013 Broadcast Industry Market Research Findings

Previous Year: The 2012 BBS Overall Brand Opinion League Table

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© Devoncroft Partners. All Rights Reserved.

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Video Chip Maker Ambarella Grows Revenue 24.5 Percent in Fiscal 2013

Broadcaster Financial Results, Quarterly Results | Posted by Joe Zaller
Mar 17 2013

Video chip maker Ambarella announced that its revenue for the fourth quarter of fiscal 2013 was $31.5m, up 28.3% from $24.6 million in the same period in fiscal 2012. For the fiscal year ended January 31, 2013, the company’s revenue was $121.1m, up 24.5% from $97.3m for the year ending January 31, 2012.

GAAP net income for the fourth quarter of fiscal 2013 was $3.6m, or $0.13 per diluted ordinary share, compared with GAAP net income of $1.8m million, or $0.04 per diluted ordinary share, for the same period in fiscal 2012. GAAP net income for the year ended January 31, 2013 was $18.2m, or $0.60 per diluted ordinary share. This compares to GAAP net income of $9.8m, or $0.30 per diluted ordinary share, for the year ended January 31, 2012.

Q4 non-GAAP net income was $5m, or $0.18 per diluted ordinary share. This compares with non-GAAP net income of $2.7m, or $0.08 per diluted ordinary share for the same period in fiscal 2012. Non-GAAP net income for the year ended January 31, 2013 was $22.7m, or $0.79 per diluted ordinary share. This compares to non-GAAP net income of $13.1m, or $0.45 per diluted ordinary share, for the year ended January 31, 2012.

Q4 GAAP gross margins were 63.2%, down from 68.2% for the same period in fiscal 2012. For the year ended January 31, 2013, GAAP gross margin was 66.6%, flat with last year. Q4 non-GAAP gross margins were 63.3%, compared with 68.3% for the same period last year. Full year non-GAAP gross margin were 66.7%, down slightly from 66.7% versus last year.

“We are very pleased with our fourth quarter and fiscal year 2013 financial results,” said Fermi Wang, president and CEO. “We experienced significant year-over-year growth in our automotive and sports camera markets, and we were especially pleased with progress in our professional IP security camera market, which contributed strong gross margins as well as substantial year-over-year revenue growth. As this security market continues to grow rapidly, driven by the migration from analog standard definition cameras to digital, IP-based high definition cameras, we believe our products offer advanced technology and leading features that allow our customers to deliver winning solutions to the market.”

Ambarella’s A6 broadcast encoder/transcoder, which performs 1080p60 encoding and 1080i60 transcoding,is used by a variety of firms for H.264 and MPEG-2 head-end encoders and high-density transcoders.   It is believed that Ambarella’s broadcast industry clients include Harmonic, Ericsson, Motorola, Cisco, Harris, RGB Networks, and Evertz.

The company also sells video processors for digital video cameras, including the popular GoPro consumer cameras.

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Relate Content:

Press Release: Ambarella, Inc. Announces Fourth Quarter and Fiscal 2013 Financial Results

Ambarella Q4 FY 2013 Conference Call Transcript

Video Processing Chip Vendor Ambarella Raises $36 Million Through Initial Public Offering

Ambarella — Ammended S1 (IPO) Filing

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Harris Corp Completes Sale of Broadcast Business to The Gores Group

Broadcast Vendor M&A, SEC Filings | Posted by Joe Zaller
Feb 04 2013

Harris Corporation has completed the sale of its Broadcast Communications Division (Harris BCD) to The Gores Group, a Los Angeles based private equity firm.

Contractual details of the Asset Sale Agreement between Harris and The Gores Group can be viewed here.

The completion of the deal means that Harris Corp is now officially out of the broadcast business, after 50+ year run as one of the broadcast industry’s most significant technology vendors.  However, it appears that, for now at least, BCD will continue to be called Harris Broadcast.

Harris Morris, CEO of Harris Broadcast said “This is an exciting new chapter for Harris Broadcast, our employees and our customers. The Gores Group is an ideal fit to help us move the business forward and help drive innovation, streamline operations and improve customer service. They will also provide us additional resources such as a flexible capital base and introduce new talent to the Company.”

Carl Vogel, a veteran of the cable television and satellite industry, is a senior advisor to The Gores Group and will be a member of the Gores team providing advice and strategic guidance to the Company.

Ryan Wald, Managing Director of The Gores Group added, “We anticipate great things from Harris Broadcast. The Company has proven technology, great products and an outstanding team. With our equity capital and guidance we are confident that Harris Broadcast will transition to a strong independent company that will continue to develop and deliver market leading technology and service to its customers.”

The headline valuation of the deal was $225m, comprised of “$160m in cash, a $15m subordinated promissory note and an earnout of up to $50m based on future performance.”  According to a Harris 8-K filing with the SEC, the terms of the earnout state that in each of the four calendar years from 2013 through 2016, Harris Corporation will receive a contingent payment (in cash) of twenty percent of the revenue of Harris BCD that is in excess of a specified target revenue amount. The target revenue amount required to trigger the contingency payment to Harris Corporation was not specified, so it is difficult to judge how likely it is that the payment will be triggered. This contingent payment amount is subject to an annual cap of $25m in each calendar year (2013 – 2016).

The price paid by Gores for BCD is lower than what Harris executives previously indicated they hoped to achieve.  As a result, Harris Corp recently recorded a non-cash impairment charge of $98m relating to the sale of BCD. This is fourth time the company has written down the value of BCD during the sale process.

Following the most recent write-down of BCD’s book value, the company was contacted by SEC staff regarding the timing of the impairment charges relating to BCD. According to a filing with securities regulators, Harris provided the SEC with the following explanation:

“As of our June 29, 2012 year-end, we wrote down the carrying value of Broadcast Communications (“BCD”) to $461 million, which represented the lower of carrying value ($461 million) or estimated fair value of $490 million less estimated costs to sell of $26.5 million (or $463.5 million). With the assistance of a third-party valuation consultant, we estimated the fair value at that time to be $490 million based on discounted cash flow analysis and an analysis of sale transactions and public company market multiples for companies in markets similar to BCD. This analysis yielded estimated fair values ranging from $487 to $496 million, and included assumptions that reflected expected conditions in the markets BCD operates in. Our analysis was corroborated by a valuation summary prepared by the investment banker we engaged to assist with the sale of BCD and preliminary indications of value from potential purchasers of BCD which we received in early August 2012. Accordingly, we believe the net assets of BCD were appropriately valued at June 29, 2012.

“Unexpected changes in facts and circumstances caused us to conclude impairment indicators were present relative to BCD at the conclusion of our first fiscal quarter ended September 28, 2012. As a result of weaker than expected market conditions and general uncertainty in the market surrounding the BCD sale process, BCD unexpectedly reported lower than forecasted revenue, operating income and cash flows for the first quarter of fiscal 2013. BCD’s lower first quarter results and a lower confidence level in BCD’s ability to meet future financial forecasts resulted in lower preliminary bids from interested parties received during the last week of October ranging from $175 to $310 million. Further, we updated our discounted cash flow analysis as of September 28, 2012 by adjusting our assumptions of expected revenues, operating income and cash flows. Specifically, we reduced our revenue projections, increased projected working capital requirements and applied higher discount rates to reflect greater uncertainty surrounding BCD’s current and future expected financial results. As a result of the lower preliminary bids, our updated discounted cash flow analysis and a revised valuation summary prepared by our investment banker, we reduced the carrying value of BCD as of September 28, 2012 to $287.2 million (estimated fair value of $300 million, less estimated selling costs of $12.8 million), resulting in a non-cash impairment charge of $216.5 million.”

 

Recent Performance of Harris BCD

According to a recent 10-Q filing with the SEC, Harris said its discontinued operations, the vast majority of which relate to BCD performed as follows:

 

 Results of Harris Discontinued Operations Through Fiscal Q2 2013

 

Looking to the Future of Harris Broadcast

Now under new ownership, Harris Broadcast remains one of the largest vendors in the broadcast technology space.  The completion of deal means the company can now put behind it the uncertainty that has surrounded it since Harris Corp announced its intention to divest the business. As an independent company Harris Broadcast can now focus entirely on its core business and execute its strategy for growth and profitability.  It will be interesting to watch the actions the company takes between now and the 2013 NAB Show, which will be the first major public appearance of the new company.

 

 

Related Content:

Harris Corp Press Release: Harris Corporation Completes Sale of its Broadcast Communications Business to The Gores Group

Gores Group Press Release: The Gores Group Completes Acquisition of Harris Broadcast Communications

Harris Corp 10-Q Filing for the Quarterly Period Ended December 28, 2012

ASSET SALE AGREEMENT by and between HARRIS CORPORATION and GORES BROADCAST SOLUTIONS, INC. Dated as of December 5, 2012

Harris Corporation — Correspondence with SEC Regarding Write-Down of the Value of Harris BCD

Harris Corp Reports Q2 2013 Earnings, Writes Down Value of Broadcast Business by Additional $98 Million, Expects BCD Sale to Close in February

Harris Corporation Discloses Structure of Promissory Note and Earnout Provision in Sale of Broadcast Communications Division

Harris Corporation to Sell Broadcast Business to The Gores Group for $225 Million

Harris Corp Announces Q1 FY 2013 Results, Further Writes Down Value of Broadcast Business

Harris Corporation To Divest Broadcast Business

Analyzing the Sale of the Harris Broadcast Division

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Harris Corp Reports Q2 2013 Earnings, Writes Down Value of Broadcast Business by Additional $98 Million, Expects BCD Sale to Close in February

Broadcast technology vendor financials, Broadcast Vendor M&A, Quarterly Results, SEC Filings | Posted by Joe Zaller
Jan 29 2013

Against a backdrop of what CEO William Brown called a “very difficult and uncertain government spending environment,” Harris Corporation announced that its revenue in the second quarter of fiscal 2013 was $1.29Bn compared with $1.31Bn during the same period a year ago.

GAAP income from continuing operations was $142m, or $1.25 per diluted share, compared with $136m, or $1.18 per diluted share.

Harris had little to say about its Broadcast Communications Division (BCD) other than the fact that it has “entered into a definitive asset sale agreement with Gores Broadcast Solutions, Inc., an affiliate of The Gores Group, LLC, relating to the sale of Broadcast Communications.”

The company also disclosed that it recorded a non-cash impairment charge of $98m relating to the sale of BCD.

Harris has written down the value of BCD on three previous occasions. The most recent write-down was in October 2012 when the company said that based on “recent indicators of value during the first quarter of fiscal 2013, including market, financial performance and indications of value from interested parties,” it had recorded non-cash impairment charges in discontinued operations totaling $222m. Harris said that the “vast majority” of this write-down was related to BCD, with only about $6m attributed to the company’s Cyber Integrated Solutions business, which was also discontinued in 2012.

At that time, Brown said that as a result of this charge, Harris had put a net book value of $287m on Harris BCD, which he said provided an “indication of the value we expect to receive” from the sale of the broadcast business.

When Harris announced the deal to sell its broadcast business to PE firm the Gores Group in December 2012, the company put a headline value of $225m on the transaction, or $62m lower than the value Brown had telegraphed to the market two months earlier.

However, through the BCD sale press release and a subsequent regulatory filing with the SEC, Harris disclosed that the terms of its deal with the Gores Group was made up of “a cash payment of $160m, a $15m subordinated promissory note (payable 15 months after closing), and an earnout of up to $50m based on future performance.”

Today’s disclosure that Harris has recorded an additional $98m impairment charge against the value of BCD, means the broadcast business is now valued on its books at $189m. This implies that after receiving the $160m cash payment, and the payment of the $15m promissory note ($16.125m with interest), Harris is not being overly optimistic that it will receive the full potential value of the earnout provision.

Nevertheless, Harris CFO Gary McArthur told analysts that the company “continues[s] to plan to purchase an additional $200 million in shares upon the successful conclusion of the broadcast sale,” something that both McArthur and Brown have reiterated since announcing the intent to divest BCD in May 2012.

McArthur also said that the company expects to close the sale of BCD in early February 2013, thereby ending the company’s 50+ year run as one of the broadcast industry’s most significant technology vendors.

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Related Content:

Press Release: Harris Corporation Reports Fiscal 2013 Second Quarter Results

Harris Corporation Discloses Structure of Promissory Note and Earnout Provision in Sale of Broadcast Communications Division

Harris Corporation to Sell Broadcast Business to The Gores Group for $225 Million

Harris Corp Announces Q1 FY 2013 Results, Further Writes Down Value of Broadcast Business

Harris Corporation To Divest Broadcast Business

Analyzing the Sale of the Harris Broadcast Division

Harris Corporation Shuts Down Cyber Integrated Solutions Business

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© Devoncroft Partners. All Rights Reserved.

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Harris Corporation Discloses Structure of Promissory Note and Earnout Provision in Sale of Broadcast Communications Division

Broadcast Vendor M&A, SEC Filings | Posted by Joe Zaller
Dec 06 2012

When Harris Corporation announced earlier today that it had signed an agreement to sell its Broadcast Communications Division (Harris BCD) to The Gores Group (TGG), the company said that the terms of the deal included “a cash payment of $160m, a $15m subordinated promissory note, and an earnout of up to $50m based on future performance.”

Harris Corp subsequently issued a regulatory filing that provides more detail on the promissory note and the terms of the earnout.

The $15m subordinated promissory note is payable fifteen months after closing, accrues simple annual interest at six percent, and is unsecured.

The terms of the earnout state that in each of the four calendar years from 2013 through 2016, Harris Corporation will receive a contingent payment (in cash) of twenty percent of the revenue of Harris BCD that is in excess of a specified target revenue amount.

The target revenue amount required to trigger the contingency payment to Harris Corporation was not specified, so it is difficult to judge how likely it is that the payment will be triggered.

This contingent payment amount is subject to an annual cap of $25m in each calendar year (2013 – 2016).

In the event that Harris BCD’s revenue would have caused the contingent payment in any such year to exceed $25m, the contingency payment will be carried forward and credited as revenue in the next year.

The total value of the contingency payment cannot exceed $50m over the period of the agreement.

Harris said that the target amount required to trigger the contingency payment could be lowered in the event of a sale or divestiture by TGG of parts of Harris BCD including a business unit, product line or substantial portion of its consolidated assets.

These provisions are not uncommon in M&A deals.  Indeed when Technicolor sold Grass Valley to Francisco Partners in 2010, a similar arrangement was put in place.

Under the terms of the Technicolor deal with Francisco Partners:

  • An $80m promissory note was issued to Technicolor with a six-year maturity and bearing a capitalized interest of 5% per year
  • Technicolor has the right to receive “additional consideration from [Francisco Partners] based on the potential future remuneration of the new owners of the disposed entity.”  However the amount of remuneration was not disclosed.

 

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Related Content:

Harris Corporation to Sell Broadcast Business to The Gores Group for $225 Million

Harris Press Release: Harris Corporation to Sell Broadcast Communications to The Gores Group for $225 Million

Harris Corporation 8-K Filing

 

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Harris Corporation to Sell Broadcast Business to The Gores Group for $225 Million

Broadcast Vendor M&A | Posted by Joe Zaller
Dec 06 2012

Harris Corporation said today that it has signed an agreement to sell its Broadcast Communications Division (Harris BCD) to The Gores Group (TGG), a Los Angeles-based private equity firm, for $225m.

Under the terms of the deal, The Gores Group will pay $160m in cash a $15m subordinated promissory note and an earnout of up to $50m based on future performance. The deal is expected to close in early calendar year 2013.

The deal price is  below the $287m valuation that Harris Corp recently said it had on its books for BCD following three successive write-downs of BCD.

“The sale of Broadcast Communications reflects our strategy to optimize our business portfolio and focus on our core businesses,” said Harris Corporation CEO William Brown.

The upfront cash portion of the deal is below the amount that Brown had previously telegraphed to the market.  When the sale of BCD was announced in May 2012, Brown said that he expected to receive “substantially more” than $200m for BCD, and that the company would the first $200m from the sale of BCD to shareholders, and use the residual to invest in the company’s core defense business.

Brown addressed this in a statement, saying “As previously communicated, we plan to repurchase up to $200 million of our shares after the deal closes. This is in addition to the $200 million of share repurchases already planned for fiscal 2013 and reflects our ongoing commitment to effectively deploy capital, including returning cash to shareholders.”

According to its website, The Gores Group has $3.3 billion in assets under management and “specializes in acquiring businesses that are undergoing change in capital structure, strategy, operations or growth and can benefit from Gores’ operational and strategic approach.” TGG says it “targets companies with a defensible core business, mature products or services, sustainable revenues, established customer relationships, and that have reached a transition point in their lifecycle presenting an opportunity for transformation.”

“In Harris Broadcast Communications, we are investing in a proven technology leader with great products and a great team. We are excited to provide the capital and support to transition this division to a strong and independent company further enabling it to continue developing and delivering market leading technologies to its customers,” said Ryan Wald, Managing Director of The Gores Group.

The announcement did not disclose whether current management would remain in place, or for how long Harris BCD will continue to have the right to use the Harris name.  However Wald’s statement that TGG is investing in a great team implies current Harris BCD president Harris Morris is likely to remain at the helm of the company.

The announcement comes after months of intense rumor and speculation, which began in May 2012 when Harris Corporation announced its intention to divest its broadcast business, saying BCD was no longer considered a core asset to the defense contractor’s overall business.

At that time, Harris Corporation CEO William Brown summed up the company’s reasons for wanting to sell-off BCD: “The combination of a lack of effective integration by the company over the last decade, coupled with a market outlook that is not as promising today as once believed led us to believe that the business is best owned by another party.

The structure of Harris BCD today is the result of a decade-long M&A program, which transformed the company from a leading provider of radio and television transmitters into one of the largest pure-play broadcast technology vendors. According to a TVNewsCheck article, Harris spent close to $1 Billion on M&A since 2000, including the acquisitions of Louth, Encoda, and Leitch.

A May 2012 analysis of the sale of the Harris broadcast business showed that the company has approximately 1,700 employees and had revenue of approximately $375m through the third quarter of FY 2012, essentially flat with the previous year.  It is believed that Harris BCD had revenue of approximately $500m for the full FY 2012, which ended on June 30, 2012, down about 10% versus the previous year.

 

Deal Valuation Below Book Value

The $225m valuation of BCD is below Harris Corp’s internal valuation of BCD, which the company said during its most recent earnings announcement that it had lowered to approximately $287m based on “recent indicators of value during the first quarter of fiscal 2013, including market, financial performance and indications of value from interested parties.”

At that time, Brown said this lowered internal valuation gives an “indication of the value we expect to receive” from the sale of Harris BCD.

The recent write-down of BCD is the third time in the last six months that Harris has taken a non-cash impairment charge against the value of BCD.

In May 2012 when Harris Corp announced its intention to divest BCD, the company said it “recorded in the third quarter a non-cash charge of $407m after-tax, or $3.62 per diluted share, to write down a significant portion of the goodwill and other long-lived assets in Broadcast Communications, resulting in the GAAP loss from continuing operations.”  Information about how Harris Corp calculated this write-down was published in the company’s Q3 FY 2012 10-Q filing.

Harris subsequently disclosed a second BCD impairment charge of $23.6m in August 2012 as part of the company’s annual 10-K filing with the SEC, which said:

 “Due to the length of time necessary to measure the impairment of goodwill and other long-lived assets, our impairment analysis [of BCD] was not complete as of the end of the third quarter of fiscal 2012. In the fourth quarter of fiscal 2012, we completed our impairment analysis and, as a result, recorded a $23.6 million ($10.5 million after-tax) increase to our initial estimated impairment charge. The portion of the total $447.6 million impairment charge related to goodwill was $395.6 million, a minor amount of which was deductible for tax purposes.”

 

Potential Implications of the Deal for the Broadcast Industry

The fact that Harris BCD was acquired by a private equity firm with no previous experience in the broadcast technology space has interesting implications for both Harris BCD and the broadcast technology landscape as a whole.

Since Harris Corp announced its intention to sell the broadcast unit, many names have been bandied about as potential buyers of BCD — ranging from established industry players such as Grass Valley (via their PE owner Francisco Partners), to large “strategic buyers” with some existing activities in the broadcast industry (similar to Belden’s purchase of Miranda Technologies earlier this year), to private equity players.

Now that the buyer has been announced, the next question is whether The Gores Group will use BCD as a platform for further expansion into the broadcast industry (as Belden said it would do with Miranda), or break BCD up and sell it off.

Time will tell.

 

What’s Next For Harris Corp?

Having found a buyer for BCD, Harris Corporation can now concentrate on its core defense business.  This was one of the primary factors cited by Brown when he announced the plan to sell BCD in May 2012, saying to equity analysts: “given the tough environment that we are facing it’s important for us to focus our resources including our management time and attention on the businesses that we know to be core to our company so we can be successful into FY 2013 and beyond.”

However, things are getting tougher in the defense business due in large part to hundreds of millions of dollars in mandatory budget that are scheduled to take effect in early 2013. This has put pressure on Harris Corp.  According to a recent Associated Press article Lazard Capital Markets analyst Michael Lewis downgraded his rating on the company’s stock, citing worries about weaker revenue due to reduced government spending.

This may make Harris Corp a potential takeover target.  Indeed, according to a recent Reuters article, the collapse of the proposed $45 Billion merger of defense giants BAE and EADS “will shift the focus to smaller deals among global weapons makers as companies strive to keep revenue rising in the face of cuts in military spending by the United States and Europe.  Instead, major defense companies likely will focus on possible combinations with smaller players such as Rockwell Collins, L-3 Communications Holdings Inc, SAIC Inc, ITT Exelis and Harris Corp, according to interviews with more than a dozen industry executives and bankers.”

Given the environment, one has to wonder whether the divestiture of BCD is a precursor of an eventual sale of Harris Corporation itself to a larger defense contractor. After all, both the company and its CEO may now be well-positioned for the next deal.

With the pending disposal of BCD now announced, Harris Corp is now a pure-play “mid-tier” defense contractor, and therefore more attractive as a potential partner to another defense firm; and Brown himself is well-suited for this environment.  He joined Harris from United Technologies (UTC), where he orchestrated a $16.5 billion deal to buy Goodrich Corp., which closed after he joined Harris as CEO.  Previously, as the head of UTC’s Fire & Security division, he executed more than 40 M&A deals, creating a $6.5 Billion operation in the process.

 

 

 

 

 

Related Content:

 

Press Release: Harris Corporation to Sell Broadcast Communications to The Gores Group for $225 Million

Harris Corp Announces Q1 FY 2013 Results, Further Writes Down Value of Broadcast Business

Harris Corporation To Divest Broadcast Business

Analyzing the Sale of the Harris Broadcast Division

Guest Post: Investment Banker Perspective on Sale of Harris Broadcast

Statement From Harris Broadcast CEO on Divestiture of Harris Broadcast Communications Division

Harris Q3 FY 2012 10-Q Filing – details write-down of broadcast division

Harris 8-K Filing – Restates Fiscal 2011-12 Revenue on Pro Forma Basis (Without Broadcast and Cyber Integrated Solutions)

TVNewsCheck Article: Tech’s Big Question: What’s Next For Harris?

Quincy Herald-Whig ArticleProspective buyers seek information on Harris broadcast; business as usual in Quincy

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Harris Corp Announces Q1 FY 2013 Results, Further Writes Down Value of Broadcast Business

Broadcast technology vendor financials, Broadcast Vendor M&A, Quarterly Results, SEC Filings | Posted by Joe Zaller
Oct 30 2012

Harris Corporation announced that its revenue in the first quarter of its 2013 fiscal year was $1.26Bn, down 6% versus the same period a year ago, and down 13% versus the previous quarter.

These results do not include the company’s Broadcast Communications Division (BCD) which was classified as a discontinued operation following the May 2012 announcement that Harris will divest its broadcast division, which is no longer considered a core asset to the defense contractor’s overall business. Harris Cyber Integrated Solutions (CIS), which the company said it was shutting down in February 2012 was also excluded from these results.

 

Performance of Broadcast Business Below Expectations

Although the company did not break out the results of its broadcast division, the performance of BCD in the quarter was “little bit worse than expected,” according to statements made by Harris CEO William Brown during a conference call with equity analysts.   “Our first quarter results in Broadcast were a little less than what we had expected, both because the market’s a little bit tough and because some of the issues around our selling the business [caused] some of our customers to be a bit hesitant,” said Brown.

Based on an analysis of recent Harris Corp SEC filings, it is believed that Harris BCD had revenues of approximately $135m during the first quarter of fiscal 2012, and more than $500m for the full 2012 fiscal year.

 

Update on Sale of Harris Broadcast Communications Division

Harris CFO Gary McArthur said the company is making progress on the disposal of BCD and it expects “to conclude by the end of the calendar year.”  This timetable is consistent with the company’s previous earnings call, and also with statements made by Harris BCD president Harris Morris at the company’s press conference at the recent IBC trade show.

McArthur also reiterated the company’s previously stated intention to “use up to $200m of the proceeds from the BCD disposition to repurchase additional shares” of Harris Corp.

 

Further Write-Down of Harris Broadcast Communications Division Valuation

Harris also announced that it has recorded additional non-cash impairment charges in discontinued operations totaling $222 million, the “vast majority” of which is related to BCD, with only about $6m attributed to CIS.

The company said it lowered the internal valuation of CIS and BCD based on “recent indicators of value during the first quarter of fiscal 2013, including market, financial performance and indications of value from interested parties.”

Brown said that as a result of these factors, Harris has puts a net book value of $287m on the company’s broadcast communications business, which he said gives an “indication of the value we expect to receive” from the sale of Harris BCD.

This is the third time in the last six months that Harris has taken a non-cash impairment charge against the value of BCD.

In May 2012 when Harris Corp announced its intention to divest BCD, the company said it “recorded in the third quarter a non-cash charge of $407m after-tax, or $3.62 per diluted share, to write down a significant portion of the goodwill and other long-lived assets in Broadcast Communications, resulting in the GAAP loss from continuing operations.”  Information about how Harris Corp calculated this write-down was published in the company’s Q3 FY 2012 10-Q filing.

Harris subsequently disclosed a second BCD impairment charge of $23.6m in August 2012 as part of the company’s annual 10-K filing with the SEC, which said:

 “Due to the length of time necessary to measure the impairment of goodwill and other long-lived assets, our impairment analysis [of BCD] was not complete as of the end of the third quarter of fiscal 2012. In the fourth quarter of fiscal 2012, we completed our impairment analysis and, as a result, recorded a $23.6 million ($10.5 million after-tax) increase to our initial estimated impairment charge. The portion of the total $447.6 million impairment charge related to goodwill was $395.6 million, a minor amount of which was deductible for tax purposes.”

 

The lowered valuation of BCD prompted JP Morgan Chase analyst Joseph Nadol to ask whether there is a price at which Harris would not sell the broadcast business.  Brown rebuffed this idea, saying “we made the decision to divest the Broadcast business because we didn’t think it fits strategically with where we want to take the [core] business. It’s now our job to maximize value for share owners and as we dispose of that business and that exactly what we’re doing. I don’t think it’s appropriate to have a where’s the sort of the walk-away price. We’re committed to sell the business and do the right thing for share owners, given the fact it doesn’t fit strategically and that’s what the management team has got a bead on right now. So we’ll tell more, we’ll have more of an update towards the end of the year as we announce the sale of Broadcast and clearly more to say as we announce our Q2 results.”

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Related Content:

Press Release: Harris Corporation Reports Fiscal 2013 First Quarter Results

Harris Corp. Fiscal 2013 First Quarter Earnings Call Presentation

Harris shares fall after Lazard downgrade http://dcft.co/Ra6J5m

Previous Quarter: Harris Announces Q4 and Full Year 2012 Results – Says Sale of Broadcast Business is On Track to Close by End of Year

Previous Year: Harris Reports Q1 2012 Results, Says Broadcast Revenue Increasing

Harris 10-K Filing with SEC for FY 2012

Presentation: Harris Annual Meeting of Shareholders, October 26, 2012

Guest Post: Investment Banker Perspective on Sale of Harris Broadcast

Analyzing the Sale of the Harris Broadcast Division

Statement From Harris Broadcast CEO on Divestiture of Harris Broadcast Communications Division

Harris Corporation To Divest Broadcast Business

Harris Q3 FY 2012 10-Q Filing – details write-down of broadcast division

Harris 8-K Filing – Restates Fiscal 2011-12 Revenue on Pro Forma Basis (Without Broadcast and Cyber Integrated Solutions)

TVNewsCheck Article: Tech’s Big Question: What’s Next For Harris?

Quincy Herald-Whig ArticleProspective buyers seek information on Harris broadcast; business as usual in Quincy

Harris Corporation Shuts Down Cyber Integrated Solutions Business

 

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Video Processing Chip Vendor Ambarella Raises $36 Million Through Initial Public Offering

Broadcast technology vendor financials, IPO, SEC Filings | Posted by Joe Zaller
Oct 22 2012

Video chip maker Ambarella raised $36m through an initial public offering.  The company’s shares were priced at $6, well below the previously estimated range of $9 to $11.

About 4.9 million of the shares in the offering were sold by the company, with the rest coming from existing shareholders.  The company says the offering will net it approximately $24.9m, after expenses, and could rise to approximately $29.9m, if its underwriters fully exercise their over-allotment option.

The company said it intend to use the proceeds from the IPO for general corporate purposes, including working capital and capital expenditures. The company also said it may use a portion of the net proceeds to acquire complementary businesses, products or technologies, but said it is not currently contemplating any such acquisitions.

Ambarella has two primary segments, “camera” and “infrastructure” (which includes broadcast-related customers), and has shipped approximately 27 million SoCs shipped since it was founded in 2004.

Last year Ambarella year, the company posted a profit of $9.8m on revenue of $97.2m, with approximately $24m coming from its infrastructure segment, which includes broadcast related applications.   For the first six months of 2012, the company posted a net profit of $7.8m on revenue of $53.9m, including $15m from the infrastructure segment.

The company says its A6 broadcast encoder/transcoder, which performs 1080p60 encoding and 1080i60 transcoding, is well-suited for high-density applications such as H.264 and MPEG-2 head-end encoders and high-density transcoders.   It is believed that Ambarella’s broadcast industry clients include Harmonic, Ericsson, Motorola, Cisco, Harris, RGB Networks, and Evertz.

The company also sells video processors for digital video cameras, including the popular GoPro consumer cameras.

The company is listed on the NSADAQ market, and trades under the ticker symbol AMBA.

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Related Content:

Ambarella Amended S1 (IPO) Filing with the SEC

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