Posts Tagged ‘IP’

Leading Media Technology Executives to Discuss Next-Generation Technologies at NAB Show NY

Conference Sessions | Posted by Josh Stinehour
Nov 03 2016

If you are interested in hearing leading media technology experts discuss the business implications and latest developments with next-generation technologies including ATSC 3.0, Cloud services, and IP-based infrastructure, then you will want to attend the series of conference session Devoncroft is co-producing at the upcoming NAB Show New York on Thursday, November 10th.

You may attend the sessions by registering for the Core Package for the exhibition.   As part of our partnership with the NAB Show New York organizers, we are pleased to offer the discount code EP04 to enable a $50 savings on the Core Package Pricing.

We hope to see you in New York at the Javits Center.

 

NAB Show New York Conference Session Details

 

Key Trends Driving Investment in the Media Technology Sector

Thu. November 10 | 11:15 AM – 11:45 AM | Inspiration Stage 4

Description:

Top broadcast analyst Joe Zaller will present a summary of key data derived from a variety of broadcast market intelligence projects including the Devoncroft Partners 2016 Big Broadcast Survey, the industry’s definitive demand-side market study. This session will highlight the evolution of technology investments in the media technology market, including the macro drivers of technology investments, the market performance in 2016, and expectations for technology spend in 2017. Specific topics will include the strategic business drivers of broadcast technology spending, considerations for next-generation technologies (4K / UHD, IP / IT, Cloud), and the increased level of M&A activity by both vendors and broadcasters.

Speaker:

  • Joe Zaller, President Devoncroft Partners

 

Link to NAB Show NY Session Listing

 

ATSC 3.0: Impact on Business Strategies and Technology Spending

Thu. November 10| 12:00 PM – 12:30 PM | Inspiration Stage 4

Description:

A panel of technology decision makers at leading broadcasters will discuss how the forthcoming ATSC 3.0 standard is impacting their investment decisions. Hear where broadcasters are planning to invest, the timeline for spending, and how ATSC 3.0-related spending will impact investment in other areas. . The discussion will evaluate practical investment considerations for deployment costs, new revenue models, and consumer adoption timing. Participants will share perspectives in the context of the latest developments with the ATSC 3.0 standard and regulatory process.

Speakers:

  • Delbert Parks, SVP and CTO Sinclair Broadcast Group
  • Dave Siegler, VP, Technical Operation Cox Media Group

 

Link to NAB Show NY Session Listing

 

Evaluating Actual IP-Based Infrastructure Deployments

Thu. November 10| 2:00 PM – 2:30 PM | Inspiration Stage 4

Description:

A panel of technology decision makers at leading broadcasters will discuss the transition of live broadcast environments to IP-based technology infrastructure. The discussion with include a review of business opportunities, remaining challenges, and timing of the transition. In particular, the panelists will share perspectives on business issues related to migrating to IP-based infrastructures, such as different purchase models, expectations of reliability, impact on broadcast technology vendors, measuring benefit, and training requirements.

Speakers:

  • Todd Donovan, Senior Vice President, Broadcast Operations & Engineering ABC Television Network
  • Thomas Edwards, VP Engineering & Development FOX NE&O

 

Link to NAB Show NY Session Listing

 

The Business Case of the Holistic Content Factory: Media Supply Chain Management and Cloud Native Applications

Thu. November 10| 2:45 PM – 3:15 PM | Inspiration Stage 4

Description:

A panel of technology decision makers at leading media companies will discuss how media operations are evolving so that cost structures are aligned with the need to deliver content to a mix of multiple linear and OTT delivery platforms. This session will touch on themes including automated workflow-driven processes, media supply chain management, and cloud-native applications. . Discussion topics will include the business case for moving media operations to cloud infrastructure, and the current technical and business gaps preventing cloud deployments in the media industry. The panelists will also share opinions on what they require from technology suppliers as they migrate to cloud-based architectures.

Speaker:

  • John Honeycutt, CTO Discovery Communications

Link to NAB Show NY Session Listing

 

Should Cloud-First Thinking be a Strategic Imperative for Media Companies?

Thu. November 10| 3:30 PM – 4:00 PM | Inspiration Stage 4

Description:

Although broadcasters and media companies are increasingly embracing cloud-based technologies, there is not a one-size-fits all approach to cloud adoption. Some companies are “all-in” and working towards “cloud-first” thinking, whereas others are building “cloud-ready” facilities that keep much of the infrastructure on premise. This moderated discussion features the technical leaders from large media companies with different business models and different approaches to deploying and utilizing cloud technology in major projects they are currently planning. This session will touch on themes including automated workflow-driven processes, media supply chain management, and cloud-native applications. Discussion topics will include when business drivers justify the case for moving media operations to cloud infrastructure, and when it makes sense to deploy traditional on premise infrastructure. The panelists will also share opinions on gaps preventing cloud deployments in the media industry and what they require from technology suppliers as they migrate to cloud-based architectures.

Speakers:

  • Fred Mattocks, GM, Media Operations & Technology CBC
  • Steve Plunkett, Chief Technology Officer, Broadcast and Media Services Ericsson

 

Link to NAB Show NY Session Listing

 

Related Content:

 

 

© Devoncroft Partners 2009-2016.  All Rights Reserved.

 

 

Evertz Announces Record Backlog and Shipments along with C$13.5 million IP Order

Analysis, Broadcaster Financial Results, Quarterly Results | Posted by Josh Stinehour
Sep 19 2016

Evertz announced revenue for the first quarter of its 2017 fiscal year, which ended on July 31, 2016.  Revenue for the quarter was C$87.0 million, up 2.5% versus the same period a year ago, and down 9.7% versus the previous quarter. evertz-logo

The strengthening US dollar contributed a foreign exchange gain of C$6.6 million during the quarter.

Net earnings for the quarter were C$18.6 million (C$0.25 earnings per share), flat versus the first fiscal quarter of 2016, and an increase of 129.6% versus the preceding quarter. The company generated C$19.9 million cash from operations in the quarter.  This compares to cash used by operations of C$7.8 million during the same period last year and cash from operations of C$10.1 million during the previous quarter.

Revenue results for the quarter were below the consensus estimates of equity analysts of C$95.1 million, while earnings results were above the consensus estimates of analysts of C$0.24 per share.

During management’s exchange with analysts, EVP Brian Campbell attributed the lower level of revenue in the quarter to the typical lumpiness of orders along with the stretching of certain orders into future quarters.

The Company said its shipments during August 2016 were C$31 million, and that its purchase order backlog at the end of the quarter was in excess of C$70 million.   The combined shipments and backlog of C$101 million is a record level for Evertz.

The top ten customers in the quarter accounted for 30% of revenue and no customer accounted for an excess of 6% of revenue. Evertz had 104 individual customers each representing over $200,000 of revenue.

Gross margins in the quarter were 57.3%, down slightly from 56.4% last year and also down from 57.1% last quarter.  For the quarter operating margins were 28.5%, compared to 29.9% during the same period last year and 23.9% in the FQ4 2016.

Evertz ended the quarter with C$125.4 million of cash and cash equivalents up slightly from C$123.1 million at the end of last quarter.

Revenue by Geography:

  • Revenue in the US/Canada region was C$52.1 million, an increase of 4.2% versus the same period a year ago, and flat versus the previous quarter. US/Canada sales were 59.9% of total revenue during the quarter, up from 58.9% of revenue during the same period a year ago, and a substantial increase versus the 53% contribution during the preceding quarter.
  • International revenue was C$34.9 million, flat versus the previous year’s result and a decrease of 22.6% when compared to the previous quarter. International sales were 40.1% of total revenue, down from 41.1% last year and 47.0% last quarter.

Operating Expenditures by Function:

  • R&D expenses (before tax credits) in the second quarter were C$17.5 million, an increase of 7.4% versus the same period last year, and an increase of 1.2% versus the previous quarter. R&D expenses were 20.1% of revenue in the quarter, higher on a percentage basis than the 19.2% last year and the 17.9% last quarter.
  • Selling and administrative expenses for the quarter were C$14.9 million, a slight increase of 0.7% versus last year, and a decrease of 8.0% versus the preceding quarter. Selling and administrative expenses represented approximately 17.1% of revenue in the quarter versus 19.2% of revenue during the same period last year, and 17.9% of revenue in the previous quarter.

Management Commentary on Results:

Consistent with earlier quarters, Evertz EVP Brian Campbell attributed the overall performance and combined shipment and order backlog “to the ongoing transition to HD, channel proliferation, the increasing global demand for high-quality video anywhere anytime”.  Also consistent with previous quarters, Mr. Campbell added emphasis on “the growing adoption of Evertz’s IP-based software-defined networking solutions.”

While Evertz declined to provide an update on the number of SDVN deployments (over 50 SDVN installments as of the 2016 NAB Show), the Company did issue a press release on the receipt of a C$13.5 million purchase order for a “state-of-the-art” IP facility for a US customer.  The purchase order includes multiple EXE hyperscale and IPX modular switch cores, IP media gateways, and compression and control solutions.

In responding to a question by Thanos Moschopoulos of BMO Capital Markets on the interest level of cloud for Evertz customers, Mr. Campbell provided commentary on cloud adoption in the media sector.  “It’s very much early days, but it is meaningful” stated Mr. Campbell.  “And Evertz is well down the path in virtualizing the important components for customers to meet to their needs, whether that’s in a public cloud or in a private cloud or hybrid” continued Mr. Campbell.

 

 

Related Content:

Press release on Evertz FY Q1 2017 Results

MD&A on Evertz FY Q1 2017 Results

Financial Statements for Evertz FY Q1 2017

Press Release on “State-of-the-Art” IP Facility Order

 

 

© Devoncroft Partners 2009-2016.  All Rights Reserved.

 

 

EVS Revenue Increases Over 70% in Q2, Driven by Upgrades for Rio 2016

Analysis, Broadcast technology vendor financials, Quarterly Results | Posted by Josh Stinehour
Aug 25 2016

Production and playout video server specialist EVS reported Q2 2016 financial results.  Revenues for the second quarter of 2016 were €39.8 million, an increase of 70.8% over Q2 2015 results, and an incrEVS_Logo (2013)ease of 48.0% versus the preceding quarter, Q1 2016.  Excluding the effect of exchange rate movements and big event rentals, the EVS’s Q2 2016 revenue increased 67.6% versus the year earlier period.

Driving revenue in the quarter were upgrades by outside broadcast (“OB”) companies upgrading equipment in preparation for the large events of 2016, in particular the Rio 2016 Summer Olympics.  Year-over-year revenue growth also benefited in part from a softer comparable period of Q2 2015.

Net profit for Q2 2016 amounted to €12.6 million (€0.93 per share), compared to €0.70 million (€0.05 per share) in the year earlier period and €4.9 million (€0.36 per share) in the preceding quarter.

Gross margins for the quarter were 77.3%, an increase of over 1000 basis points compared to Q2 2015, and an increase of 680 basis points when measured against Q1 2016.  Gross margins were boosted in part by higher margins associated with Rental revenue.  Management attributed the margin increase in Rental revenue to the completion of C-Cast development work, which negatively impacted the gross margin of Rental revenue in earlier periods.

Operating profit for the second quarter of 2016 was €17.40 million, up 815.8% compared to the second quarter of 2015 and up 128.9% versus the first quarter of 2016.  Operating margin for the quarter was 44.0%, a sharp rise over the 8.0% operating margins from the same period last year and the 22.7% operating margin achieved during the first quarter of 2016.

Research and development (“R&D”) expenses for the second quarter of 2016 were €5.45 million, or 14.0% of total revenue, a decline of 11.5% versus the R&D expense in Q2 2015, and a decline of 6.0% against Q1 2016.  As a percentage of sales, R&D expense was 26.0% of total revenue in Q2 2015 and 22.0% during Q1 2016.  Year-over-year comparisons were impacted by costs associated with the closing of EVS’s development office in Chengdu during Q2 2015.

Selling and administrative expenses for the second quarter of 2016 were €7.44 million, or 19.0% of total revenue, representing an increase 4.3% over the second quarter of 2015, and an increase of 16.3% versus the preceding quarter.  As a percentage of sales, selling and administrative expense was 30.6% of total revenue in Q2 2015 and 24.0% during Q1 2016.

EVS ended the quarter with 482 employees, down slightly from 483 at the end of the first quarter of 2016, and down from the 471 employees at the end of Q2 2015.

The order book stood at €41.8 million as of August 24, 2016, with 80% to 85% of the current order book set to invoice during the third quarter of 2016.  The current order book represents an increase of 13.6% over the order book on August 25, 2015 and a decline of 22.3% compared to the order book on May 10, 2016.

Revenue by Destination:

  • Revenues from Outside broadcast vans during the second quarter of 2016 were €22.2 million, a 75.3% increase versus the second quarter of 2015, and a 47.2% increase compared to first quarter of 2016. For the second quarter of 2016, this segment contributed 56.0% of the total revenue, which compares to 54.0% in Q2 2015 and 56.0% in Q1 2016. Revenue in this category was driven by customer upgrades to support the large event taking place in 2016.
  • Revenues from Studio & others during the quarter were €13.7 million, up 53.2% compared to the year earlier period, and up 16.0% versus the preceding quarter. For the second quarter of 2015, this segment contributed 34.0% of total revenue, a decline versus the contribution of 38.0% in Q2 2015 and 44.0% in Q1 2016.
  • Revenues from Big sporting event rentals during the quarter were €3.9 million, an increase of 127.3% versus the year-earlier period. There were no rental sales in the first quarter of 2016.  For the second quarter of 2016, this segment contributed 10.0% of total revenue, a decrease versus 7.0% contribution in Q2 2015.

The below slide from EVS’s Q2 2016 earnings presentation illustrates the revenue breakout by destination for historical periods.

slide

Revenue by Nature:

  • Systems revenue in the quarter was €36.80 million, up 68.8% versus Q2 2015, and an increase of 49.3% against Q1 2016. During the second quarter of 2016, Systems revenue represented 92.0% of total revenue, comparable to the 94.0% in Q2 2015 and 92.0% in Q1 2016.
  • Services revenue was €2.98 million for Q2 2016, up 97.4% versus the year ago period, and a rise of 34.2% compared to Q1 2016. Contribution to the second quarter of 2016 revenue was 7.0% of the total, which is in-line with the contribution of 6.0% in Q2 2015 and 8.0% in Q1 2016.

Revenue by Geography:

  • Revenue from EMEA (excluding events) in the second quarter was €13.5 million, up 52.5% against last year’s comparable quarter, and a rise of 57.7% compared to Q1 2016. Sales in EMEA (excluding events) accounted for 38.0% of EVS’s revenue during the quarter.  This compares to 41.0% of total revenue during the second quarter of 2015 and 32.0% during first quarter of 2016.
  • Americas’ revenue for the second quarter of 2016 was €14.6 million, an increase of 107.8% versus the year-over-year period, and an increase of 38.5% compared to the preceding quarter. Americas accounted for 41.0% of total revenue during the quarter, up from 33.0% of total revenue during Q2 2015 and 39.0% in Q1 2016.
  • Q2 2016 revenue from the APAC region was €7.71 million, up 36.0% versus last year’s quarter, and a slight decline of 0.3% versus the preceding quarter. APAC accounted for 22.0% of total revenue in the Q2 2016, versus a contribution of 26.0% during Q2 2015 and 29.0% in Q1 2016.

 

Business Outlook:

As part of the earnings release, Management increased and narrowed revenue guidance for the full year.  Revenues for 2016 are now expected between €128 million and €138 million.

During EVS’s conference call, Managing Director & CEO Muriel De Lathouwer, offered commentary on the market environment.  “We see that the adoption of 4K and IP progressed across all geographies with more concrete discussions that we have now on those subjects with our customers. We are very happy with the order book and the evolution, but we still don’t want to have too much excitement as we know that part of the uptake of these new technologies will be included in the traditional lifecycle of upgrades.”

 

Related Content:

Press Release: EVS Q2 2016 Results

Presentation: EVS Q2 2016 Results

 

 

© Devoncroft Partners 2009-2016. All Rights Reserved.

 

 

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