Posts Tagged ‘IBC 2016 trends’

Dolby Q3 Outperforms; Management Offers Updates on Atmos and Vision Adoption

Analysis, Broadcast technology vendor financials, Quarterly Results | Posted by Josh Stinehour
Aug 11 2016

Dolby announced revenue for its third fiscal quarter (ending July 1, 2016) of $277.6 million, up 19.8% versus the year earlier period, and an increase of 1.2% versus the preceding quarter, Q2 2016 .  Dolby_logo.svg

GAAP net income for the quarter was $63.6 million or $0.62 earnings per share (diluted).  This represents a 79% increase over the net income for the fiscal third quarter of 2015 of $35.5 million ($0.34 earnings per share), and a sequential decline of 5.6% against the preceding quarter.

GAAP Gross Margins were 91.1% for the quarter, an increase over the gross margins of 89.3% from the year earlier period and equivalent to the gross margins recorded during fiscal Q2 2016.  Operating margins were 29%, an increase over the 19% from fiscal Q3 2015 and a slight decline against the 29% operating margins during the preceding quarter.

Management guidance from the preceding quarter was for revenue in the range of $260 million to $275 million, gross margins between 89% and 90%, and earnings per share between $0.47 and $0.53. Dolby’s actual results exceed guidance in all areas.

The financial outperformance against guidance was attributed to increased adoption in the mobile and Digital Media Adapters (“DMAs”) and the timing of customer payments skewing toward the recently completed quarter.

Revenue by Type:

Dolby reports revenue across licensing, product, and service activities.  Product revenues consists primarily of sales of Digital Cinema Servers and Dolby Cinema Audio Products.

  • Licensing revenue for FQ3 2016 was $253.0 million, an increase of 23.5% versus FQ3 2015 and a 1.5% increase versus FQ2 2016.
  • Product revenue was $20.6 million, a decline of 8.7% compared to the year earlier period, and an increase of 2.8% versus FQ2 2016 results. Year-over-year declines are consistent with the broader cinema equipment market, which has been impacted by the recent completion of the conversion from film to digital.
  • Services revenue were $3.9 million during the fiscal third quarter, a decrease of 7.7% against FQ2 2015 and a decrease of 20.6% versus the fiscal second quarter’s results.

Product gross margins for FQ2 2016 were 31.7%, a substantial increase over the 11.4% gross margins from FQ3 2015 and a slight increase over the 30.3% gross margins in FQ2 2016.  According to Dolby’s SEC filing, the higher product gross margins stemmed from lower charges for excess and obsolete inventory along with reduced manufacturing variances.

Licensing Revenue by Customer Vertical:

Licensing revenue in the Broadcast vertical for televisions and set-top box sales was 39% of total licensing revenue or $98.7 million.  On an aggregate basis, Broadcast licensing grew 4.7% versus FQ3 2015, though declined 12.0% versus the preceding quarter, FQ2 2016.  As a percentage of total licensing revenue, Broadcast contributed 46% in FQ3 2015 and 45% during the FQ2 2016.

The remainder of Dolby’s licensing revenue is attributable to PC, Mobile, Consumer Electronics, and Other (Video game consoles, automobile entertainment, and audio conferencing).

Management attributed the sequential drop in Broadcast licensing to normal seasonality.  The year-over-year increase for Broadcast was due to emerging market transition to digital broadcast.  In particular in China where China Telecom and China Unicom specified Dolby Audio on their respective 4K IPTV set-top boxes.

Update on Dolby Atmos, Doly Cinema, and Dolby Vision:

As part of the earning release, Dolby disclosed several data points on the growing adoption of Dolby Atmos, the Company’s next-generation immersion audio technology.

There are now nearly 2,000 screens worldwide where Dolby Atmos is installed or committed.  Over 490 Dolby Atmos titles have been announced or released.  In the television sector during the quarter, the French Rugby League Final was delivered by Orange in Dolby Atmos and Comcast announced plans to deliver Dolby Atmos content later this year.

Management also provided an update on the progress of Dolby Cinema, a premium branded cinema. There are now more than 30 Dolby Cinema locations open and another 220 Dolby Cinema locations are scheduled for roll out around the world.  Dolby Cinema exhibitor partners include AMC (US), Wanda and Jackie Chan (China), Vue (Netherlands), and Cineplex (Austria).

In its call with analysts, Dolby’s management cited several developments with Dolby Vision, the Company’s high dynamic range imaging technology.

Since its launch in May, there have been 50 Dolby Vision theatrical titles announced or released.  Examples include the recent high-profile films Star Trek Beyond and The Legend of Tarzan.  

Lionsgate, Universal Pictures, Sony Pictures, and Warner Bros have all announced plans to create Dolby Vision content for the home.  Management is anticipating up to 100 Dolby Vision titles available for home entertainment by the end of 2016.

Dolby Vision has made further progress with television set manufacturers.  The second largest TV manufacturer in the world, LG now includes Dolby Vision in its full lineup of 2016 OLED and Super UHD LCD TVS.  Vizio (2nd largest in TV Manufacturer in US) now has Dolby Vision in its R-series, P-series, and M-series of televisions.  In addition, Dolby Vision TVs are now shipping from Skyworks, the third largest TV manufacturer in the world.

In the over-the-top (“OTT”) sector, Dolby Vision is now streaming from Amazon, Netflix, and Vudu.

Financial Guidance

Management guidance for the fiscal fourth quarter is revenue in the range of $220 million to $230 million, gross margins between 88% and 89%, and earnings per share between $0.16 and $0.22.  Broadcast licensing is anticipated to represent 45% of total revenue during FQ4 2016.

Commenting on the quarter’s results, Kevin Yeaman, President and CEO, Dolby Laboratories stated, “Q3 results were strong, and we continued to build momentum with our new initiatives. We opened our first Dolby Cinema locations in China, grew the number of Dolby Vision televisions in market, and added a new Dolby Voice partner.”


Related Content:

Press Release: Dolby Fiscal Q3 2016 Earnings Release



© Devoncroft Partners 2009 – 2016. All Rights Reserved.



AWS Continues Strong Growth and Margin Expansion in Q2

Analysis, Broadcast technology vendor financials, Quarterly Results | Posted by Josh Stinehour
Aug 11 2016

Amazon reported results for the second quarter of 2016.  Since the first quarter of 2015, Amazon has been reporting the individual results of Amazon Web Services (AWS).  AWS had revenue of $2.88 billion in the quarter, a 58% increase over the year-earlier quarter, and an increase of 12.4% against the preceding quarter, Q1 2016.  For the trailing twelve months ending in the second quarter AWS generated $9.9 billion in revenue.  Amazon_AWS_Logo

AWS represented 9.5% of Amazon’s total sales for the quarter, an increase from the 7.8% contribution for Q1 2015, and an increase from the 8% contribution in Q1 2016.

While AWS represented 9.5% of sales from Amazon in the quarter, it contributed 56% of Amazon’s total operating income.  Operating income for the quarter was $718 million, a 135% year-over-year increase, and an 18.8% increase over the first quarter.

Operating margins for AWS in the quarter were 24.8%, a substantial increase over the 16.7% operating margins during Q2 2015, and an increase over the 23.5% margins in Q1 2016. The reporting of operating income includes a burden for stock-based compensation.  The margin expansion is reflecting efficiencies from AWS ever-growing infrastructure.

The reported revenue for AWS consists of the more than 70 services now offered from the AWS platform across including the sales of compute, storage, and database.  Amazon does not specifically address how much AWS revenue was attributable to the media industry.  However, the AWS figures are a great data point for better understanding the broader adoption of cloud services.

Speaking at the 2016 NAB Show Cloud Innovation Conference, Bhavik Vyas Global Alliance & Segment Leader in Media & Entertainment for AWS, offered several examples of media companies using AWS infrastructure for media operations.  The below slide is from Mr. Vyas’s presentation.



The below chart from Amazon’s Q2 2016 earnings presentation illustrates the growth of revenue and operating income for AWS over the past year.


Management attributed the growth in AWS revenue and profitability to increased customer usage and cost structure productivity.  This was partially offset by continued pricing decreases and increased spending on technology infrastructure.

Operating margins don’t capture the cash flow impact of capital expenditures and payments attributable to the financing of equipment for AWS, which is not disclosed directly.  It is a very capital intensive business.

Additional information from Amazon’s filings are illustrative of the significant level of investment in technology infrastructure attributed to AWS.  The Company’s total capital expenditures (cash) were $1.7 billion during the quarter, an increase of 42% versus both year-earlier period and the preceding quarter.  According to Amazon’s SEC filings, “This primarily reflects additional investments in support of continued business growth due to investments in technology infrastructure (the majority of which is to support AWS) and additional capacity to support our fulfillment operations.”

Cash capital expenditures do not account for property and equipment acquired under capital lease obligation (non-balance sheet items).  Property and equipment acquired under capital leases were $1.4 billion in Q2 2016, flat versus Q2 2015, and an increase of 60% against Q1 2016. Amazon attributes this spend to “investments in support of continued business growth primarily due to investments in technology infrastructure for AWS.”

On Amazon’s call with earnings analyst, Brian Olsavsky, SVP and Chief Financial Officer, responded to a question on the market rates of cloud adoption as follows, “We think still very early. Again, we like our position, our industry leading position in the cloud space, and we’re working on things that would incent more and more customers to accelerate their cloud conversion. The lower prices and services that we offer, and as I said, we’ll work on things that will make it easier and easier for customers to work with us with their hybrid data centers or transfer their volume to us.”


Related Content:

Press Release: Amazon Q2 2016 Earnings

Presentation: Amazon Q2 2016 Earnings



© Devoncroft Partners 2009 – 2016. All Rights Reserved.




Harmonic Exceeds Revenue Guidance for Q2. Anticipates Double-Digit Operating Margins by Q4

Analysis, Broadcast technology vendor financials, Quarterly Results | Posted by Josh Stinehour
Aug 10 2016

Harmonic announced revenue for second quarter of 2016 of $109.5 million, an increase of 6% versus Q2 2015 and an increase of 33% versus the preceding quarter Q1 2016.  Guidance for Q2 2016 had been for revenue in the range of $102 million – $107 million.  Meaning, the quarter’s revenue result exceeded the high-end of previous guidance. Harmonic_Logo

The quarter’s growth was primarily the result of revenue contribution from the Thomson Video Networks (“TVN”) acquisition, which closed in late February.  TVN contributed approximately $18 million in revenue for the quarter.  Management is expecting TVN to contribute $55 million to $60 million for the full year.

Included below is a slide from Harmonic’s earning presentation, which highlights several updates with the Company’s Video Business.  Of particular note, Harmonic’s VOS platform – for software bundles, COTS servers, and pure virtual machines – exceeded 75% of video encoding sales during the quarter.


GAAP gross margins were 46.9% for the second quarter, a 599 basis point decline versus the 52.8% recorded in Q2 2015 and a 288 basis point decline when compared to the 49.7% gross margins in Q1 2016.  Harmonic attributed the gross margin declines to a less favorable product mix and delays in recognizing software and services revenue.

For the quarter, Harmonic recorded a GAAP net loss of $20.4 million or $(0.27) per diluted share.  This compares to a net loss of $0.3 million or ($0.01) per share in Q2 2015 and a net loss of $25.2 million or ($0.33) per share in Q1 2016. This brings Harmonic’s GAAP net loss for the first six months of 2016 to $45.6 million.

The GAAP figures include several non-cash items or one-item items such as restructuring charges, amortization of intangibles, stock-based compensation, and inventory write-downs.  On a non-GAAP basis Harmonic’s net loss for the first six months of 2016 was $8.4 million.  One of the larger one-time items are charges related to the restructuring and integration of TVN.  Management is anticipating these costs in the in the range of $22 million to $24 million for 2016.

In its conference call with analyst, Harmonic confirmed it remains on track to realize $20 – $22 million of annual synergy savings from the integration of TVN.  The full impact of these savings will begin with the start of 2017.  Management believes the savings, combined with higher revenue levels will result in the Company achieving double-digit non-GAAP operating profit in Q4 2016.

“…as a percent of revenue our OpEx in Q3 and Q4 will be lower and particular in Q4 we’ll be at probably I think the lowest point that Harmonic has had for OpEx as a percent of revenue in a number of years and I think the most important point is with the operating expense run rate that we expect to have we will be in a position to generate double-digit operating profit in 2017 without a significant increase in revenue” said Harmonic’s CEO Patrick Harshman on the Company’s earnings call with management.

Bookings for the second quarter of 2016 were $117.3 million, an increase of 18.1% versus the year earlier period, and a 7.0% increase versus the preceding quarter.

The Company’s total backlog and deferred revenue was $190 million, up 57.7% and 5.8%over Q2 2015 and Q1 2016, respectively.  This is the highest level of backlog and deferred revenue in Harmonic history.

On a geographic basis:

  • Revenue from the Americas region contributed $57.7 million for the quarter, a decrease of 4.4% versus the prior year and a sequential increase of 17.8% against the preceding quarter. Americas accounted for 53% of Harmonic’s revenue for Q2 2016, a decline versus the 58% from Q2 2015, and also a decline when compared to the 59% contribution recorded in Q1 2016
  • Revenue from the EMEA region was $33.4 million for Q2 2016, an increase of 22.3% versus Q2 2015, and a substantial increase of 68.5% against the preceding quarter. The EMEA region was responsible for 31% of Harmonic’s revenue in the quarter, an increase versus the 27% contribution from Q2 2015, and a further increase from the 25% contribution in Q1 2016.  The strong performance in EMEA is likely attributable to the TVN acquisition.  At the time of the acquisition 50% of TVN’s revenue came from the EMEA region.
  • APAC revenue was $17.6 million during the quarter, a 14.4% increase against Q2 2015, and a 35.6% increase against Q1 2016. APAC represented 16% of Harmonic’s revenue for the quarter, a slight increase versus the 15% contribution in Q2 2015, and equivalent to the contribution in Q1 2016

On a product line basis:

  • Video products revenue for the quarter was $62.2 million, an increase of 10.8% compared to Q2 2015, and a significant increase of 6% versus Q1 2016. As a percent of total sales, video products represented 57% of revenue in Q2 2016.  This compares to 54% in year-earlier period Q2 2015 and 54% in the preceding quarter Q1 2016.  TVN contributed $18 million to Video products revenue in the quarter.  Management is expected continued sequential growth from Video products in Q3 and Q4.
  • Cable Edge revenue was $15.8 million during the quarter, a decrease of 26.2% versus Q2 2015, though an increase of 17.3% compared to the preceding quarter. Cable Edge represented 14% of revenue in Q2 2016, a decrease versus the 21% contribution in Q2 2015, and a decrease against the 16% of revenue recorded in Q1 2016.  A continued near-term decline of Harmonic’s legacy EdgeQAM technology is anticipated.  Harmonic remains on schedule to ship its CableOS product line in the fourth quarter of this year.
  • Services and support revenue amounted to $30.9 million in Q2 2016, an increase of 20.2% against Q2 2015, and an increase of 27.5% versus Q1 2016. Service and support revenue was 29% of revenue for Q2 2016, an increase over the 25% from Q2 2015, and a decrease against the 30% from Q1 2016

On a segment basis:

  • Broadcast and Media sales were $43.8 million during the quarter, a year-over-year increase of 12.2%, and a substantial rise of 43.4% against the preceding quarter. Broadcast and Media was responsible for 40% of revenue for the second quarter of 2016, a slight percent increase from the 38% in both Q2 2015 and Q1 2016.
  • Service Provider sales were $64.9 million in the second quarter, a 1.4% year-over-year increase, and an increase of 26.6% versus Q1 2016. Service Provider represented 60% of revenue in the quarter, a slight decrease from 62% contribution in Q2 2015, and a decrease from the 62% contribution during Q1 2016.

Operating Expenses:

  • Research and development (“R&D”) expense was $26.5 million for the quarter, an increase of 21.5% compared to Q2 2015, and an increase of 12.5% against Q1 2016. Expressed as a percentage of total revenue, R&D expense represented 24.3% of sales in the quarter.  This is up from 21.2% in Q2 2015, though down from the 28.8% in Q1 2016.
  • SG&A expense was $36.5 million for the quarter, an increase of 16.7% versus Q2 2015, and a rise of 11.1% compared to Q1 2016. As a percentage of total sales, SG&A was 33.5% of revenue in the quarter.  This compares to 30.3% in Q2 2015 and 40.2% in Q1 2016.

The increases in both operating expense categories was driven by the integration of TVN operations.

The Company’s cash position ended the second quarter of 2016 at $65.3 million, down from $76.2 million from the end of Q1 2016.  The decrease in cash was primarily due to an increase in accounts receivable.

Harmonic ended the second quarter with 1,403 employees, up from 1,019 at the end of Q1 2016.  The TVN acquisition added approximately 438 employees.

Business outlook:

For Q3 2016 management is anticipating total revenue in the range of $104.5M – $109.5M and GAAP gross margins of 50.0% – 51.0%.  Operating loss is expected between $12.5 million and $10.5 million with net loss of between $12.5 million to $10.5 million.

Video revenue is expected to contribute between $92.5 million and $95.5 million in the upcoming quarter with Cable Edge accounting for revenue of $12.0 million to $14.0 million.

Also, as part of the earning release, Management increased full year guidance to a GAAP revenue expectation of $408 million to $418 million for 2016.  Video revenue is now anticipated between $348 million to $353 million and Cable Edge revenue is expected between $60.0 million and $65.0 million.

Commenting on quarter’s results, Mr. Harshman stated, “So putting it all together here, our strong order book, positive market demand trends, and strong internal execution enable us to remain confident in delivering the double digit operating profit we targeted in Q4 as we exit the year.”



Related Content:

Press Release: Harmonic Q2 2016 Earnings Announcement

Press Release: Harmonic Q2 2016 Earnings Presentation



© Devoncroft Partners 2009 – 2016. All Rights Reserved.



Disney Acquires Equity Stake in BAMTech

Analysis, Broadcast Vendor M&A | Posted by Josh Stinehour
Aug 09 2016

Disney announced a $1 billion acquisition of a minority stake in BAMTech, the entity holding Major League Baseball’s streaming technology and content delivery business.  The spin-out of BAMTech from MLB Advanced Media (“MLBAM”) was announced in late 2015.  The Disney investment in BAMTech had been rumored for several months.

In its quarterly SEC filing, Disney disclosed it acquired an initial 15% equity position in BAMTech for $450 million.  Disney has committed to purchasing an additional 18% equity interest in BAMTech for $557 million in January 2017.  Those two investments value BAMTech at $3.05 billion.

Disney declined to provide any specifics on BAMTech’s operating profile, though did note there is “some very slight dilution from the acquisition.”  However, Disney’s management felt this was more than offset by the trajectory of BAM Tech’s business and the opportunities to combine with Disney’s content properties, most notably ESPN.

Based on the previous public statements by MLBAM’s CEO Bob Bowman, the  $3.05 billion valuation level implies a revenue multiple of 12.2x expected 2016 revenue for BAMTech (please note several estimates involved in that calculation).

As part of the investment, Disney also gains the right to acquire majority ownership “in the coming years.”  The NHL currently holds a 7% – 10% equity position in BAMTech based on the August 2015 partnership deal between the companies.

The announcement coincided with Disney’s fiscal third quarter results.  During Disney’s call with analysts, CEO and Chairman Bob Iger, added context on Disney’s diligence of BAMTech.

“I love the business model because I love the quality of what they’ve created, largely from a technology perspective.  You’re look at an industry-leading platform.  And we did a fair amount of due diligence on this, speaking with people who have been clients of their service.  And also, we did our own due diligence in the sense that we’ve been clients of competing services.  And we concluded that what they’ve got is really robust” said Mr. Iger.

Since Disney is already a customer of BAM Tech, one immediate question is why Disney thought it was necessary to buy BAM Tech as opposed to renting its services as a customer.  During an interview with CNBC, Bob Iger responded to the customer vs. owner question from CNBC host Julia Boorstin.

“First of all, we think it is a good investment. We love their business model.  We think that in today’s world having the ability to stream on a scale basis live sports and live programming is a competitive advantage and something that is necessary.  We love the user interface.  So, overall we look at is as an investment.  But as a partner, as a part owner, and ultimately as a majority owner, we feel it gives us an ability to jump start not only ESPN, but are other business as well, into a space that we think is not only very exciting but extremely important in a very dynamic media marketplace.  So much better to own than to rent” responded Mr. Iger.


Related Content:

Press Release: Disney Acquisition of Minority Stake in BAMTech



© Devoncroft Partners 2009-2016.  All Rights Reserved.



Clear-Com Acquires Trilogy Communications

Analysis, Broadcast Vendor M&A | Posted by Josh Stinehour
Aug 08 2016

Intercom solution provider Clear-Com has acquired competitor Trilogy Communications.  The purchase price equates to a valuation of 0.9x annual revenue.  cc-trilogy

Clear-Com is a subsidiary of Poway, CA based HM Electronics (“HME”).  Trilogy is headquartered in Andover, Hampshire UK and had been owned by the Foresight Group, a UK based infrastructure and private equity investment manager.

In its 2015 annual report, Foresight had indicated Trilogy was pursuing strategic options including a possible sale.

Based on Foresight’s disclosure, the acquisition price for Trilogy is GBP 2.9 million.  According to its regulatory filings, Trilogy’s revenue for the trailing twelve months ending February 2016 was GBP 3.26 million.  Using these figures the transaction values Trilogy at a 0.9x multiple of annual revenue.  When HME purchased Clear-Com from the Vitec Group in 2010, the valuation was 0.4x annual sales.

Trilogy’s revenue declined (in GBP terms) 23% in the twelve months ending February 26, 2016.  This was preceded by revenue decreases in 2013 and 2012 (2014 showed slight growth).  In aggregate, annual sales decreased 62% between the fiscal year ending February 2012 and the most recent fiscal year ending February 2016.

Trilogy’s profitability was impacted by the decline in sales.  EBITDA loss was GBP 762,000 for the fiscal year ending February 2014 and GBP 509,000 for the fiscal year ending February 2015.

Foresight’s financial reports provide additional context on the declining performance of Trilogy.  The principal cause cited for the revenue declines since 2012 were delays in US Defense orders.  The broadcast division of Trilogy was cited as facing a difficult trading environment in each of 2014 and 2015.

In the press release announcing the acquisition, Mitzi Dominguez, CEO of Clear-Com stated, “Both companies have been serving the professional intercom business for decades and bring a wealth of industry knowledge to the marketplace. The efforts of our combined teams will deliver tremendous added value to customers all over the world and will create new business opportunities for both companies. We extend a warm welcome to all Trilogy employees and customers.”

Bob Boster, President of Clear-Com, added some context on the technology alignment of the businesses.   “Their specialized matrix solutions perfectly complement Clear-Com’s highly-programmable and scalable digital matrix portfolio, increasing each team’s capabilities to meet the ever-growing and vastly-diverse communication needs across the markets we serve.  Trilogy’s SPG solutions will also be well received by our broadcast customers globally” said Mr. Boster.


Related Content:

Press release: Clear-Com Acquisition of Trilogy Communications



© Devoncroft Partners 2009-2016.  All Rights Reserved.



Avid has Strong Q2, Raises Full-Year Guidance

Analysis, Broadcast technology vendor financials, Quarterly Results | Posted by Josh Stinehour
Aug 08 2016

Avid Technology announced Q2 2016 GAAP revenue of $134.1 million, a year-over-year increase of 22.1% against Q2 2015, and a decline of 6.5% versus Q1 2016.  Avid Logo_ white background

Approximately 60% of the year-over-year growth is attributable to a change in the accounting treatment of revenue recognized for the release of the latest Pro Tools version 12.5.  The ability to more quickly recognize revenue reflects Avid’s progress over the past two years of eliminating the practice of implied support for products and transitioning to explicit support and recurring revenue models.

Avid did not disclose the amount of the growth attributable to revenue contribution from Orad, which was purchased in late June 2015.  As a reference, Orad had $10.4 million of revenue during Q1 2015.

Net income for the quarter was $13.0 million or $0.33 per share.  This compares to Q2 2016 net income of ($4.0) million or ($0.10) per share.  During the first quarter of 2016 Avid had net income of $20.9 million or $0.53 per share.

Gross margins (GAAP) for the quarter were 65.5%, an increase of 510 basis points when compared to the year earlier period, and a decrease of 420 basis points against the preceding quarter.

Operating income for Q2 2016 was $18.8 million, a substantial increase over the operating loss of $8.1 million in Q2 2015, though a decline of 26.8% versus Q1 2016.

R&D expense for the quarter were $21.4 million, an 8.1% decline against Q2 2015 R&D levels, and flat when compared to the first quarter of 2016.  As a percentage of revenue R&D expenses were 15.9% for the quarter, compared to 21.2% of total revenue in Q2 2015.

Sales and marketing costs for Q2 2016 were $30.2 million, representing an 8.0% decline versus Q2 2015 sales and marketing levels, and a decline of 4.4% versus Q1 2016.  Sales and marketing expenses were 22.5% of Q2 2016 revenue, a decline versus 29.9% of total revenue from the second quarter of 2015.

G&A expense was $16.8 million for Q2 2016, a decline of 3.5% versus the year-earlier quarter, and a decline of 5% against the preceding quarter.  Expressed in terms of total revenue, G&A expense was 12.5% of sales in Q2 2016 versus 15.9% in Q2 2015.

When considering the comparable period Q2 2015 figures do not include a full contribution of Orad’s operations (purchased in late June 2015), the decline across all operating expense categories – especially in sales – illustrates the impact of Avid’s recent restructuring initiatives.

There are many one-time expenses and non-cash items in Avid’s income statement results.  To provide a more normalized view of profitability Avid cites adjusted EBITDA, which is defined as operating income plus expense add backs for costs attributed to amortization, restructuring, restatements, stock-based compensation, acquisitions, integration activities, and efficiency program costs.  Adjusted EBITDA for the quarter was $29.4M, a substantial increase over the adjusted EBITDA of $1.4 million from Q2 2015.

Product and Services Revenue Breakdown

  • Product revenue for the quarter was $75.6 million, a slight decline of 0.7% versus the prior year, and a decline of 10.5% against the preceding quarter. Products represented 56.4% of overall revenue in the quarter, a decrease versus the 69.3% contribution during the second quarter of 2015.
    • Video solutions represented $44.5 million of Product sales, an increase of 3.9% versus the prior year. The primary cause of the increase in sales for the quarter was the contribution of revenues from the Orad acquisition.
    • Audio solution revenue for the quarter was $31.1 million, a decrease of 6.6% against the year-earlier period. Lower audio sales for the quarter were attributed to weaker Pro Tools sales.
  • Services revenue was $58.5 million, an increase of 73.9% versus the year-over-year period, and a slight decline of 0.8% against the preceding quarter. The rise in Services revenue was due to the accelerated revenue recognition associated with Pro Tools 12.5 sales.  For the quarter Services contributed 43.6% of total revenue, an increase versus the 30.6% contribution from Q2 2015.

Revenue by Geography

  • Revenues from the United States were $44.4 million for the quarter, an increase of 5.8% versus Q2 2015
  • Revenue contribution from Other Americas was $10.2 million, an increase of 54.2% on a year-over year basis
  • EMEA revenues were $58.9 million, a 25.3% increase against Q2 2015
  • The Asia-Pacific region contributed $20.5 million in revenue for the quarter, a rise of 44%

Update on Efficiency Initiative and Cash Generation

During the first quarter of 2016, Avid announced a $68 million (annualized) efficiency initiative.  As part of the Q2 2016 earnings release Avid’s management increased the efficiency target to $76 million.  A total of $57 million of the annualized savings have been achieved through the end of the second quarter.  The full savings are expected beginning in 2017.

Given the complexity of Avid’s financial statements, it is helpful to review the impact on the Company’s cash balance.  Cash used in operations for the quarter was $33.8 million.  This compares to cash used in operations of $30.8 in Q2 2015 and $11.2 million during the first quarter of 2016.

During Avid’s earlier first quarter release, Management cautioned the second quarter would experience negative cash flow between $27.5 million and $32.5 million.  It was attributable to a lower end of quarter accounts receivable balance for the first quarter, which was brought on by a decline in bookings.

Avid ended the quarter with $50.4 million in cash.  Avid had started the quarter with $87.8 million of cash.

Several factors have combined to make Avid’s financial disclosures difficult to comprehend, most notably the restatement in late 2014, which introduced a considerable amount of amortized revenue from prior financial periods.  Though this revenue is now recognized in Avid’s income statement, it does not represent any actual cash received from clients.  In other words, it is non-cash revenue with 100% gross margins.  Adding to this complexity are the effects of recent restructuring initiatives, the impact of the Orad acquisition, and the ongoing transition to a subscription model.  (Much of the complexity will abate during the second half of 2016.)

In an effort to better communicate the results of Avid’s ongoing transformation, management references several new metrics.

Update on Transformation:

Below is a chart from Avid’s investor presentation for Q2 2016 illustrating several areas of progress on the market adoption of Avid’s Everywhere Platform.


Commenting on the transformation progress, Avid CEO Louis Hernandez, Jr. stated, “Our financial results and operational performance this quarter underscore the progress we are making to transform our company into a service-platform business with strong positions in higher-growth categories and a greater proportion of recurring revenue. We have a clear path to complete this transformation by our target of mid-2017, which will enable us to accelerate growth, realize a more efficient cost structure, increase revenue visibility, and generate enhanced value for our shareholders over the long-term.”

Business Outlook:

Bookings for the quarter were $102.2 million, a decline of 13.3% versus Q2 2015, and a 4.3% increase compared to the first quarter of 2016.  The original guidance for Q2 2016 bookings was for $99 million to $115 million, so the results were in line with Q1 guidance.

For Q3 2016, management provided guidance of bookings between $100 million and $120 million.  The full backlog (post impact of restatement) was $464.7 million at the end of second quarter, a 14% decrease over the backlog at the end of the second quarter of 2015.  Avid has worked through much of the backlog introduced from the 2014 financial restatement.  The balance for the “pre-2011” backlog has been reduced to $8 million as of the end of the quarter.

Avid is expecting to begin generating adjusted free cash flow in the second half of 2016, starting with a breakeven cash flow result for the third quarter of 2016.  As part of the earnings release, Avid increased its full year guidance for 2016 (link to previous guidance) to the following,


“We are raising our full-year guidance range for non-GAAP revenue and adjusted EBITDA. We are also improving our guidance range for non-GAAP operating expenses because we are increasing our annualized run-rate cost savings target to $76 million. We are on track to be cash flow positive for the full year as we continue to execute our efficiency program and growth initiatives. We are reaffirming guidance for bookings, although we expect to be at the lower end of the range, due to higher than expected volatility in the media enterprise marketsaid Mr. Hernandez.


Related Content:

Press Release on Avid’s Q2 2016 Earnings Results:

Earnings Presentation Avid Q2 2016 Results



© Devoncroft Partners 2009 – 2016. All Rights Reserved.



Quantum Announces 20th Consecutive Quarter of Scale-out Storage Growth; Cites Large Virtual Reality Deal

Broadcast technology vendor financials, Quarterly Results | Posted by Josh Stinehour
Jul 28 2016

Quantum announced results for its first fiscal quarter of 2017, representing the three month period ending June 30, 2016.  QuantumTotal revenue for the quarter was $116.3 million, an increase of 4.9%
versus the year earlier period (FY Q1 2016), and a 3.1% decrease versus the preceding quarter (FY Q4 2016).  The first fiscal quarter of the year is generally Quantum’s weakest.

The quarter’s revenue of $116.3 million exceeded the high end of management’s guidance of $115 million (issued during the previous quarter).  The Company’s gross margins were in-line with guidance for the quarter, and its earnings result were slightly above earlier guidance.

Gross margins (GAAP) were 43.3% for the quarter, a slight improvement over the 42.4% gross margins from the year earlier period, and a slight decline compared to the 45.6% gross margins in the preceding quarter.

Net loss (GAAP) for the quarter was $3.8 million, equating to $0.01 loss per diluted share.  Quantum recorded a net loss of $10.7 million (or a loss of $0.04 per diluted share) during the year-earlier period and a net loss of $52.4 million in the preceding quarter.  The preceding quarter, fiscal fourth quarter of 2016, included a non-cash goodwill impairment charge of $55.6 million.

As of June 30, 2016 cash and cash equivalents were $34.5 million, a slight increase over the $33.8 million balance as of March 31, 2016.

Most relevant to Quantum’s activities in the media and entertainment segment, the Company’s scale-out storage business, which includes Quantum’s StorNext storage offerings, registered its 20th consecutive quarter of year-over-year growth.  Scale-out storage revenue was $30.8 million in the quarter, an 11% increase versus last year’s first quarter.

Management disclosed a win rate for scale-out storage in the quarter in the 70% range.  Over 120 new scale-out storage customers were added during the quarter, which compares favorably to the more than 90 new customers added in the first quarter of fiscal 2016.  During the call with equity analysts, management also highlighted several recent scale-out storage projects in the media and entertainment sector including a $200,000 plus deal “with one of the emerging leaders in virtual reality.”

The earnings release noted Quantum’s NAB Show announcement of integration between Avid’s Interplay MAM system and Quantum’s StorNext.  The integration enables media customers to control StorNext archive and restore functions through Interplay.  Commenting on the Avid Integration at the NAB Show, Geoff Stedman, SVP of Marketing at Quantum, said, “Through initiatives ranging from solution development to closer alignment of sales and support activities, Quantum is working closely with Avid to help Avid customers better manage their content over the long term. Together our technologies empower users to optimize their media storage and access to content on a broad range of archive platforms, providing significant time and cost savings that make it easier to achieve their creative and business goals.”


Update on Convertible Notes due November 2017

Quantum’s CFO Fuad Ahmad provided an update on Quantum’s efforts to address its convertible note balance, in the amount of $69.3 million, due in November 2017.  On the earnings call with analysts, Mr. Ahman said, “we want to be proactive, but sensible about our financing options. To that end, we’re in discussions with a number of financial institutions regarding expanding our credit lines to provide sufficient near and long-term liquidity and to create a clear and executable roadmap to address the convertible notes, which I may add will mature in another 15 months.”

Quantum had repurchased approximately $83 million dollars of prior convertible notes during November 2015.


Guidance for Fiscal Second Quarter, Full Year 2017

Quantum’s management issued guidance for the second fiscal quarter of revenue between $188 million to $122 million with GAAP gross margins of between 41% and 42% and a GAAP loss per share of $0.01 to $0.00.

Management also reaffirmed the full year guidance of at least $500 million in total revenue, equating to year-over-year growth of at least 5%.  Driving this growth is an expectation of a continued increase in scale-out storage revenue across Quantum’s vertical focus areas – Media and entertainment, surveillance and intelligence, and unstructured data archives for technical workflows.

Scale-out storage is expected to account for 35% to 40% of Quantum’s total revenue, which would represent a year-over-year growth of 40% to 60%, if achieved.

Quantum’s CEO Jon Gacek offered the following commentary on the outlook for scale-out storage, “Looking more closely at scale-out storage, Q1 was our 20thth consecutive year-over-year growth quarter, and given our increasing market traction and opportunity, we feel very good about our ability to achieve our scale-out growth objectives for the year.”


Related Content:

Press Release: Fiscal first quarter 2017 earnings release



© Devoncroft Partners 2009 – 2016. All Rights Reserved.



Akamai Media Division Declines in Q2, Despite Strong Growth in OTT Business

Analysis, Broadcast technology vendor financials, Quarterly Results | Posted by Josh Stinehour
Jul 27 2016

Content Delivery Network (CDN) service provider Akamai announced Q2 2016 financial results.  Akamai does more than $2 billion in annual revenue with operations across multiple industry verticals and several technology segments.  In its financial disclosures Akamai breaks out its revenue for Media Delivery Solutions (product category reporting) and for its Media Division (customer type reporting).  Akamai-Logo

Media Delivery Solutions encompasses a broader use case than traditional media operations.  Revenues associated with gaming, social media, software downloads, and other activities are reported in the Media Delivery Solutions category along with revenues related to the streaming of movies, television shows, and live events.   In a similar way, the Media Division includes revenues separate from the streaming of movies and television, such as technology solutions for security or website acceleration.

To address investor concerns on exposure to “do-it-yourself” initiatives from large customers, Akamai has started disclosing the revenue contribution of six large internet platform customers – Amazon, Apple, Facebook, Google, Microsoft, and Netflix.  In aggregate these six customers represented less than 11% of Akamai’s total revenue in Q2 2016, down from 18% in Q2 2015.  During the quarter’s earnings call, Akamai’s CFO’s Jim Benson indicated the six customers are predominantly classified as media customers.  Because of this, the revenue declines associated with “do-it-yourself” initiatives from these six internet platform customers has negatively impacted Akamai’s results in both Media reporting segments.

Media Delivery Solutions Category

Akamai’s Media Delivery Solutions category generated $197 million in revenue, a 9% year-over-year decline against Q2 2015 and a decline of 4% against the previous quarter, Q1 2016.  On a constant currency basis, the Media Delivery Solutions category was down 10% when compared to last year’s second quarter.

Management attributed the revenue declines to lower traffic from one of its largest customers.  Outside of Akamai’s business with the six large internet platforms, Media Delivery Solutions revenue grew 11% in the quarter versus the year prior.

As a percentage of Akamai’s total revenue, Media Delivery Solutions represented 34% during the quarter.  This compares to 45% of total revenue in Q2 2015.

Media Division

The Media Division had $288 million of revenue in the quarter, a decrease of 2% versus Q2 2015 and a decline of 1.2% against the preceding quarter.  Again, the decline was attributable to lower revenue from the six large internet platform customers.  Excluding activity from these six customers, Akamai’s Media Division grew 14% year-over-year.

During the quarter, the Media Division accounted for 50.4% of Akamai’s total revenue.  For the year-earlier quarter, the Media Division contributed 54.5% of Akamai’s sales.

In his prepared remarks on the Company’s earnings call, Akamai’s CEO Dr. Tom Leighton highlighted the strength of Akamai’s OTT business within the media division.  “…our OTT business has continued to grow at a rapid rate, following the record breaking results of the Super Bowl and March Madness in Q1, Akamai delivered a very successful EURO 2016. In addition to providing very high video quality in countries throughout Europe and North America, we set a new record for internet traffic for a single sporting event, during the final round match between Portugal and France” said Dr. Leighton.


Commentary on Media Vertical Results

The negative growth rates for its Media Delivery Solutions and Media Division were anticipated by Akamai’s management team.  Akamai experienced a moderating of growth in its Media Division segment during 2015 because of “do-it-yourself” initiatives, in particular at two of Akamai’s largest media customers (included in the six large internet platforms).  These two large customers accounted for 5% of Akamai’s total revenue in Q2 2016, down from 12% of the Company’s revenue in Q2 2015.  This continues a broader trend of Akamai’s Media Division (customer category) experiencing a declining growth rate in each of the last 10 quarters.

In responding to a question from Ganjit Sing of Morgan Stanley on growth rates related to over-the-top video (OTT) distribution, Mr. Benson offered commentary on OTT’s relative revenue contribution to Akamai’s Media Division.

“…it’s not a huge contributor to revenue in the near term. It just isn’t. What we’re seeing is steady growth in that customer base in the traffic. Steady growth in revenue. You have not seen a step function move to viewing content via those platforms. They are growing steadily. They’re growing nicely, but there has not been a catalyst yet to see a huge movement of people cutting the cord and moving online. So I think they will be a steady grower, but today the larger contributors to revenue and the media business are still software download customers, gaming, and social media.”

Later in the call, Dr. Leighton added further context on the video business when responding to a question about the nature of tasks insourced by large media customers.  Dr. Leighton stated, “…The insourcing of traffic is mostly around files where quality matters less and it’s easier to do…On the other side of the house, as we talked about, our OTT business is growing very well, much faster than the media business as a whole. And that’s because it’s more difficult to do with a high quality level, especially live and linear. And people are often paying to watch it, and so you really want to have a good experience there”


Successful Litigation Resolution

Separate to the earnings announcement, Akamai benefited from a final judgement in a long-standing legal case.  The day after the second quarter ended, July 1, 2016, Akamai received a $51 million judgement in its favor regarding a decade old patent dispute with Limelight.  The U.S. District Court in Massachusetts entered the final judgement after a series of appeals stemming from original damages awarded to Akamai in a 2008 jury ruling against Limelight.  The appeals process even reached the U.S. Supreme court in 2014.



Related Content:

Press Release: Q2 2016 Earnings Results

Press Release: $50 million dollar judgement in Akamai’s favor



© Devoncroft Partners 2009 – 2016. All Rights Reserved.



Net Insight Announces Record Second Quarter for 2016

Analysis, Broadcast technology vendor financials, Quarterly Results | Posted by Josh Stinehour
Jul 22 2016

Video transport technology provider Net Insight reported its Q2 2016 financial results.  Revenue was SEK 132.3 million, an increase of 42% over Q2 2015 and up 20% versus Q1 2016. logo-net-insight

A positive currency impact contributed 5.5% of the gain for the quarter and the acquisition of ScheduleALL contributed an additional 43.8% of the quarterly revenue increase.  Organic year-over-year growth for the quarter was still strong at 21.3%.

Management attributed the strong organic performance to deliveries relating to the Euro 2016 Football Championship in France and the upcoming Olympics in Brazil.  “We have had a great start to the year and I’m proud to present the strongest quarter ever for Net Insight” stated CEO Fredrik Tumegård at the outset of the Company’s earnings call.

Net income for the quarter was SEK 5.7 million or (0.01 earnings per share), an increase of 55.8% over Q2 2015, though a decrease of 71% against the preceding quarter, Q1 2016.

Gross margins for Q2 2016 were 62.8%, an increase above the 60.6% from the previous year’s quarter, and an improvement over the 61.7% gross margins from Q1 2016.

Operating income for the quarter was SEK 12.0 million, a 144.8% increase over the same 2015 period, and a 53.8% increase over the preceding quarter.  Operating margins were 9.0% for Q2 2016, which compares favorably to the 5.3% from Q2 2015 and the 7.1% operating margin from Q1 2016.

Since Net Insight capitalizes a portion of its development expenses, not all of the development expenditures in a given quarter are recognized in operating income.  This is offset by the amortization of previously capitalized development expenditures.  The difference in current development expense capitalization and historical development expense amortization for the quarter was SEK 4.4 million.

Net Insight had operating expenses of SEK 71.1 million in the quarter, an increase of 38% compared to Q2 2015, and an increase of 18.5% versus Q1 2016.

Sales and marketing expense was 36.4 million, an increase of 11.6% versus Q2 2015.  Expressed as a percentage of revenue, sales and market expense was 27.5% in the quarter versus 34.9% during Q2 2015.  The decline in sales and marketing as a percentage of revenue is consistent with the expected sales synergies from last year’s acquisition of ScheduALL.

Administrative expenses increased by 88.6% from 7.9 million SEK in Q2 2015 to SEK 14.9 million during the current quarter.  Administrative expenses represented 11.2% of revenue in the quarter, compared to 8.5% in the year earlier period.

Total Development expense (including the capitalized portion) for the quarter was SEK 38.4 million, a rise of 72.1% when compared to Q2 2015.  For the quarter total Development expense was 29% of revenue versus 23.9% in Q2 2015.   The increase in Development expense was caused by the integration of ScheduALL and further investments in Net Insight’s Live OTT Solution, Sye (released at the 2016 NAB Show).

Cash flow from operating activities for the quarter was SEK 7.7 million, a decrease of 48% against the year-earlier period, and a decline of 81.4% compared to the preceding quarter.  Net Insight’s CFO Thomas Bergstrom attributed the decline in part to a sharp increase in account receivables of SEK 28.5 million, which was caused by sales recognized late in the quarter.  Expressed in terms of trailing twelve month revenue, the accounts receivable balance on June 30, 2016 equates to 103 days of sales outstanding.  This compares to a figure of 81 days sales outstanding as of December 31, 2015.

Revenue by Geography

  • For the quarter, Net Insight generated sales from Western Europe of SEK 60.85 million, an increase of 4.1% versus previous year’s quarter. Western Europe was the largest contributor to total revenue, accounting for 45.7% of sales during the quarter.  In Q2 2015, Western Europe represented 62.3% of overall sales.
  • The Americas contributed SEK 38.7 million or 29.2% of Net Insight’s revenue in the quarter (versus 24.2% in the Q2 2015). Compared to Q2 2015, revenues from the Americas increased by 71.2%.  The increase is primarily attributable to the acquisition of ScheduALL, but also deliveries associated with the 2016 Olympics in Brazil
  • Rest of World sales were SEK 33.2 million, an increase of 165.6% versus the year earlier period. As a percentage of total sales, Rest of World contributed 25.4% in the quarter versus 13.4% during Q2 2015. The Company cited strong activity in both the Middle East and South Africa in its earnings release.

Revenue by Type

  • Sales attributed to Net Insight’s hardware products were SEK 66.3 million in the quarter, an increase of 32.8%. As a percentage of total sales, hardware products were 50.1% of the quarter’s sales versus 53.5% during Q2 2015.
  • Software licenses accounted for SEK 28.7 million of revenue in the quarter, an increase of 26.9% over the year earlier period. Software contributed 21.6% of overall revenue during the quarter versus 24.2% in Q2 2015.
  • Support and services sales were SEK 35.7 million during the quarter, an increase of 66.8% versus the year earlier quarter. Support and services were 26.9% of overall revenue in the quarter, an increase from the 22.9% contribution in Q2 2015.

Revenue by Vertical

  • Sales in the Broadcast & Media (BMN) business vertical were SEK 123.0 million, a 60.9% increase over the prior year’s quarter. BMN was responsible for 93% of Net Insight’s revenue in the quarter, more on a percentage basis versus the 82% in Q2 2015.
  • Sales in the Digital Terrestrial TV (DTT) vertical were SEK 9.26 million, a decrease of 37.8% over Q2 2015. On a percentage basis, DTT represented 7% of overall revenue in Q2 2016, compared to 16% in Q1 2015.
  • The CATV/IPTV vertical was0% of total sales in Q2 2016. It was 2% of total sales during Q2 2016.

Net Insight ended the second quarter with 202 employees, a substantial increase over the 138 employees from a year earlier, and a slight decline from the 204 employees at the end of the first quarter.  The acquisition of ScheduALL is the primary cause for the year-over-year increase in headcount.

Cash and cash equivalents was SEK 195.0 million at the end of the quarter, down from the SEK 170 million balance as of March 31, 2016.


Management Commentary on Live OTT Solution Offering

During Net Insight’s earnings conference call, CEO Fredrik Tumegård talked extensively on the capabilities and potential of Sye.  Net Insight is still working to secure its first commercial deployment of Sye and management was measured in setting expectations for the market adoption of the product.  “The commercial tests currently underway in Live OTT are proceeding according to plan, as we’ve previously communicated, although it will be some time before revenues hit the bottom line. This is due to a naturally long sales cycle in combination with a renewed business model, where the revenue is first made visible when the viewers are using the new services. It’s important to point out that our technology is innovative and that it always takes time for new technology to gain foothold on the market” said Mr. Tumegård.

The below slide illustrates commercial progress with Sye.  It is sourced from Net Insight’s Q2 2016 earnings presentation.



Related Content:

Press Release: on Q2 2016 Results

Net Insight CEO Statements on Q2 2016 Results



© Devoncroft Partners 2009 – 2016. All Rights Reserved.



2016 Big Broadcast Survey (BBS) Reports Now Available

broadcast technology market research, Broadcast Vendor Brand Research, market research | Posted by Josh Stinehour
Jul 21 2016

The 2016 Big Broadcast Survey (BBS) Reports are now available.

We have been publishing the BBS Reports since 2009.  Each new edition is created through several months of research, including interviews with technology end-users, global surveys of technology decision makers, analysis of the end-user responses, and visualization of the data collected.  Now in its eighth year of publication, the BBS remains the most comprehensive annual study of technology end-users in the global broadcast and media technology industry.  Nearly 10,000 technology professionals in 100+ countries participate in the BBS each year, making it the largest market study of the media technology industry.

Based on feedback from technology vendors, media companies, and investors, we have updated the vendors, product categories, and market trends profiled in the 2016 BBS to better align with recent market developments.

Select updates include the global tracking of IP Standard Adoption, a product level review of the 4K upgrade cycle, and planned usage of programmatic advertising exchanges.

The continual updates over the past eight years have helped the BBS reports remain a critical reference for industry executives to improve strategic decision-making, customer engagement, marketing strategy, product planning, and sales execution.  In addition to technology vendor and service provider strategic planning, BBS reports are also used frequently for M&A and investment activities by both buyers and sellers.

Three types of 2016 BBS reports are available:

  • 2016 BBS Global Brand Reports: provides deep insight into how each more than 100 broadcast technology suppliers (see full list below) are perceived by market participants, along with comprehensive benchmarking of broadcast technology vendors on a wide variety of metrics
  • 2016 BBS Product Reports: provide detailed information from buyers, specifiers, and users of broadcast technology products in 32 separate categories (see full list below)
  • 2016 BBS Global Market Report: provides detailed information about industry trends, major projects being planned, products being evaluated for purchase, current and future plant infrastructure, broadcast technology budgets, and planned deployment of new technologies including 4K, HEVC compression, and IP-based technology infrastructure


For additional information on the 2016 BBS report, please call or email me.

As is Devoncroft’s custom, we will publish highlights from this year’s BBS reports on the Devoncroft website.  These articles are posted on a semi-regular basis, so please check back often.

To receive posts when published, please enter register with your email in the box in the upper right-hand corner of the page.

The below table of logos (in alphabetical order) lists the technology vendor brands covered in the 2016 BBS.



Technology Product Categories & Vendor Brands Covered in the 2016 BBS, by Application Area


Acquisition & Production:

ENG Cameras

Canon, Hitachi, Ikegami, JVC, Panasonic, Sony

Large Format Single Sensor Cameras

ARRI, Blackmagic Design, Canon, Red, Sony

Production Switchers

Blackmagic Design, For-A, Grass Valley, NewTek, Panasonic, Ross Video, SAM, Sony

Studio / System Cameras

Grass Valley, Hitachi, Ikegami, JVC, Panasonic, Sony



Post Production: 

Graphics & Branding

Adobe, Autodesk, Avid/Orad, ChyronHego, Evertz, Grass Valley, Imagine Communications, Ross Video, Vizrt

Video Editing

Adobe, Apple, Avid, Blackmagic Design, EVS, Grass Valley, Imagine Communications, Sony



Content Communications and Infrastructure:

Bonded Cellular

Dejero, LiveU, Teradek, TVU

Routing Switchers

Blackmagic Design, Evertz, Grass Valley, Imagine Communications, Ross Video, SAM, Utah Scientific

Signal Processing / Interfacing / Modular

Aja Video, Axon, Blackmagic Design, Evertz, For-A, Grass Valley, Imagine Communication, Ross Video, SAM

Video Transport

Aspera, Cisco, Ericsson, Evertz, Harmonic, Imagine Communications, Lawo, Media Links, Net Insight, Nevion, Riedel, Signiant




High Performance Shared Storage:

Avid, Harmonic, Hitachi, HPE, Isilon Systems/EMC, NetApp, Quantum

Playout / Transmission Servers

Avid, EVS, Grass Valley, Harmonic, Imagine Communications, Ross Video

Production Servers

EVS, Grass Valley, Harmonic, Rohde & Schwarz, SAM




Audio Consoles

Avid, Calrec, Lawo, Salzbrenner Stagetec, Solid State Logic (SSL), Soundcraft, Studer, Wheatstone, Yamaha

Audio Processing & Monitoring

Adobe, Avid, Dolby, Linear Acoustic, RTW, TSL, Wohler

Intercom / Talkback

Clear-Com, Riedel, RTS Intercom Systems, Trilogy


AKG, Audio-Technica, beyerdynamic, Electro Voice, Marshall Electronics, Neumann, Schoeps, Sennheiser, Shure, Sony

Monitors (speakers)

Adam, Avid, Focal, Genelec, JBL, KRK Systems, Mackie, Neumann, PMC,



System Automation and Control:

Broadcast Business Management Systems

arvato/S4M, Imagine Communications, MediageniX, MSA Focus, SintecMedia, Wide Orbit

Archive & Archive Management

Masstech, Oracle/Front Porch Digital, Quantum, SGL, XenData

Media Asset Management

arvato/S4M, Avid, Dalet, EVS, Imagine Communications, Prime Focus Technologies, Vizrt, VSN

Playout Automation

Grass Valley, Imagine Communications, Pebble Beach, Playbox, Snell

Workflow Orchestration / BPM

Aspera, Avid, Imagine Communications, IBM, Sony, Telestream



Playout and Delivery:

Encoding / Transcoding

Arris, ateme, Cisco, Dalet/AmberFin, Elemental Technologies, Ericsson, Harmonic, Imagine Communications, Telestream

Integrated Playout (Channel in a Box)

Evertz, Grass Valley, Harmonic, Imagine Communications, Pebble Beach, Playbox, SAM

On-line / Streaming Video Delivery Platforms

Brightcove, Kaltura, Neulion, Ooyala, Piksel


GatesAir, Hitachi, NEC, Plisch, Rohde & Schwarz, Screen Service, Toshiba



Test, Quality Control and Monitoring:


Avitech, Axon, Evertz, For-A, Grass Valley, Imagine Communications

Test & Measurement

Imagine Communications, IneoQuest, Leader, Phabrix, Rohde & Schwarz, Tektronix



© Devoncroft Partners 2009 – 2016. All Rights Reserved.



%d bloggers like this: