Posts Tagged ‘IPTV’

Amino Technologies Reports Increased Profit on Flat Revenue for the Six Months Ended May 31, 2013

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Jul 16 2013

UK-based IPTV set-top box vendor Amino Technologies announced that its revenue for the six months ending May 31 2013 were £20.1m, flat compared to the previous year.

Operating profit jumped 735% versus last year to £2.6m.

EBITDA before exceptional items was £3.3m, up 83% from last year.

Amino’s operating profit in the period includes a rebate of £1.7m for tax and duty paid on previously recognized international product sales. Also included in this figure were restructuring charges of £700,000 resulting from the closure of Amino’s Swedish office and transfer of all development activities to Cambridge in the UK.

Investors, who have an average full year revenue target of £43.5m, sent the company’s shares down 5.8% following the earnings news.

Gross margins for the six months ended May 31 2013 were 46.2%, up from 35.4% during the same period last year. The company attributed the margin expansion to migrating customers to the company’s current product range, and the removal of older devices from its product portfolio.

On the product front, Amino said that its new lower functionality device has helped to drive contract and tender wins in markets such as Eastern Europe and Latin America where cost is the principal purchasing driver.

Operating costs in the period were up 12.8% to £6m, due to increased senior and regional sales headcount, higher R&D costs, and staff incentives.

Amino said growth in the pure OTT market is proving attractive. The company said it had several “win back” deals in North America during the period, and secured OTT contracts with a Russian language TV service and Mexican a fiber network operator.  However a previously announced deal with deal with a leading European telecoms operator has experienced some deployment delays, leading to uncertainty around the timings for product roll-out. The Netherlands has returned to normal levels following strong growth last year, and demand remains muted in Russia

“This solid set of results underlines the progress Amino is making against its goal of profitable growth and improvements in shareholder returns, said the company’s non-executive chairman Keith Todd. “During the period, we have enhanced our competitiveness in our markets through a clear and compelling proposition – quality robust products, operational performance and rapid delivery to meet demanding customer expectations. Our ability to flex our portfolio is demonstrated by new contract wins from target customers in both emerging and established markets.”

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 Related Content:

Amino Technologies: Interim results for the six months ended 31st May 2013

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© Devoncroft Partners 2009 – 2013. All Rights Reserved.

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KIT digital Revenues Jump 98% in Q1 2011, Says M&A Phase is Over and Company Will Now Focus on Organic Growth Strategy

Broadcast technology vendor financials, Broadcast Vendor M&A, Quarterly Results | Posted by Joe Zaller
May 10 2011

IPTV asset management provider KIT digital reported that its revenue for the first quarter of 2011 was $34.5m, an increase of 98% versus the same period a year ago and an increase of 5% versus the previous quarter.  On an organic basis, revenue increased approximately 38% versus the same period a year ago.

The company posted a GAAP net loss of $12.5m for the quarter, compared to a GAAP net loss of $18.4m last year, and a GAAP net loss of $8.5m in the previous quarter.  The GAAP net loss includes $7.3m in non-cash charges and $12m in restructuring and integration expenses related to the reorganization and integration of recently acquired companies.

Operating EBITDA (a non-GAAP metric which the company uses as a proxy for operating cash-flow) was $7.1m in first quarter of 2011, increasing 5% sequentially and 139% over the same year-ago quarter.  Operating EBITDA margin increased from 17.4% in the fourth quarter of 2010 to 20.5% in the first quarter of 2011, largely due to the reduced portion of professional services-related revenues and the increase in software fee-related revenues.

KIT’s CFO Robin Smyth said the company will “adopt a traditional EBITDA metric and demonstrate strong free cash-flow generation” once it has “cycled through the necessary restructuring and integration charges from recent acquisitions.” This will happen by the third quarter, he said.

Following the payment of consideration related to the acquisitions of ioko and Polymedia, as well as all related restructuring and integration charges and advisory fees, KIT digital expects to have approximately $38 million in cash and equivalents.

Company chairman and CEO Kaleil Isaza Tuzman said he was very pleased with the results of the first quarter, “particularly when you consider the lower digital media usage levels and consequent negative seasonality of Q1 over Q4 throughout the industry.”

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Financial Guidance:

Because much of KIT’s growth has come via M&A, including the recent purchases of Kewego, KickApps, and Kyte (January 2011), Polymedia (March 2011) and ioko (April 2011), KIT management provided new guidance that includes all recently acquired businesses.  The company now estimates that it will report approximately $48m of revenues in the current second quarter (including contributions from ioko and Polymedia), and reiterated its estimates of approximately $210m of revenues and 23% EBITDA margin for fiscal 2011.

Tuzman added: “We are also glad to report we have completed the bulk of the restructuring work related to our acquisitions to date, and expect below-the-line restructuring and integration charges to approach zero by the beginning of the third quarter — two to three months earlier than we originally anticipated. This should allow us to report a ‘clean’ back-half of 2011, without adjustments to cash EBITDA, allowing for a harmonization of EBITDA and more traditional GAAP and cash-flow metrics.”

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Organic Growth Strategy:

The company says that its recent M&A activities have enabled it to reach its long-stated goal of  a 45-50% market share in the IP video platform software sector, and that it will now focus on organic growth.  “Going forward, we expect the pace of our M&A activity to slow dramatically, as we optimize what we have acquired,” said Tuzman.

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Related Content:

Press Release: KIT digital Reports First Quarter 2011 Results

More Broadcast Vendor M&A: Kit Digital Buys ioko for $79.4m, Completes Buying Spree

KIT digital Reports Q4 and Fiscal 2010 Results, Raises Guidance, Says Big M&A Deal Still on Track

More Broadcast Vendor M&A: KIT digital Acquires Polymedia for $34.4m

More Broadcast Vendor M&A: Kit Digital Buys Three Companies for $77m, Says larger Acquisition is Coming

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More Broadcast Vendor M&A: KIT digital Acquires Polymedia for $34.4m

Broadcast Vendor M&A | Posted by Joe Zaller
Mar 17 2011

Kit digital announced that it has signed a definitive agreement to acquire IP video platform-provisioning provider Polymedia in a cash and stock deal valued at $34.4m.  The transaction includes guaranteed payments of approximately $34.4 million at closing, comprised of $17.2 million in cash and up to $17.2 million in KIT digital common stock.

Polymedia, headquartered in Milan, has a total full-time staff of approximately 150, plus 70+ occasional contractors.  The company is profitable as a stand-alone company, and is expected to contribute approximately $19m in annualized revenue to the enlarged company. KIT digital management said it expects the Polymedia acquisition to be accretive to earnings.

Polymedia’s core technology revolves around a set of proprietary tools that will allow KIT digital to more rapidly deploy its network operator and broadcaster solutions, and support various revenue models for premium IP video content. Deployments include video-on-demand (VOD) stores, subscription VOD, catch-up TV, e-commerce integrated product placement promotions, and advertising-sponsored content.

Kit digital has been very acquisitive recently, snapping up about a dozen companies, including the recent acquisitions of KickApps, Kewego and Kyte, which were announced at the end of January 2011.  

Last year, Kit digital raised $110m through a stock offering, and said much of the proceeds would be used to fund M&A activities

Following the completion of the Polymedia acquisition, KIT digital says it will have approximately $90 million in cash and equivalents.

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Related Content:

Press Release: KIT digital Acquires Polymedia

KIT digital Reports Q4 and Fiscal 2010 Results, Raises Guidance, Says Big M&A Deal Still on Track

Kit digital buys KickApps, Kewego, and Kyte

Kit digital sells $100m of stock, says proceeds will be used to fund broadcast industry M&A activities.

KIT digital to Sell up to $110m in Common Stock – Will We See More Long-Hinted M&A?

Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
Nov 19 2010

IPTV asset management provider Kit digital announced that it plans to sell shares of its common stock a public offering underwritten by Roth Capital Partners, Merriman Capital, ThinkEquity, Janney Montgomery Scott, and Northland Capital Markets.

According to a filing with the SEC, the company says it will sell 8 million shares of common stock at $12 per share, and that it has allocated an additional 1.2 million shares as an over-allotment option.  If all shares are sold, the company will collect $110.4m before expenses.   According to a separate 8K filing with the SEC, the Company expects to receive approximately $88,300,000 in net proceeds from the offering after underwriting fees and offering expenses, or approximately $101,800,000 if the underwriters’ over-allotment option is exercised in full.

This announcement comes on the heels of Kit digital filing an S-3 Shelf Registration with the SEC, under which it may sell shares of its common stock in one or more offerings up to a total dollar amount of $250m over an indeterminate period.

Although these filings did not say what the company will do with the proceeds of the recently announced offering, it has made several recent public statements that provide clues.  These include hints about M&A on multiple occasions, and the fact that it plans to achieve “long-term dominance in our industry segment.”  

When the company recently issued preliminary results for the third quarter of 2010, Kit digital chairman and CEO Kaleil Isaza Tuzman hinted at impending acquisitions, including the potential purchase of a major competitor.  ”Consistent with our previously stated strategic mandate, we continue to look at relatively small acquisitions that add geographical and sales vertical reach, which we intend to fund out of our treasury, cash from operations or limited assumption of debt. At the same time, we are considering more ‘transformative’ opportunities, where we might be able to acquire a top competitor and significantly extend our market share.”

The company also disclosed recently that it has tripled the number of shares of common stock reserved for issuance under its incentive stock plan, saying that it views stock options as an important management tool and a key means to motivate employees to continue to perform.

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You can read the Kit digital prospectus here.

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Kit Digital Announces Preliminary Q3 Results, Issues Guidance, Hints Again at M&A

Broadcast technology vendor financials, Broadcast Vendor M&A, Quarterly Results | Posted by Joe Zaller
Nov 08 2010

IPTV asset management provider Kit digital announced that it expects to report record revenue of more than $27m for the third quarter of 2010, an increase of 147% versus the same period a year ago, and an 18% improvement sequentially.  The company also said that it added more than 45 net new clients during the quarter, including telco and network operators.

Kit digital says that it expects to book a net loss for the third quarter, but did not disclose how much money it will lose.  However, the company said that its operating EBITDA (a non-GAAP measure) for the third quarter of 2010 is expected to be $4.4m, an increase of 376% versus the same quarter a year ago, and an increase of 5% versus the previous quarter.

The company issued guidance for the full year, saying that it expects to report revenue in excess of $100m for 2010, more than double 2009 revenue, and that it expects full year EBITDA to be approximately $18 million, up 267% over the previous year.  The company also said that expects organic revenue for 2011 to be in excess of $152.5m, with an EBITDA margin for the year of at least 21.5%.

Company chairman & CEO Kaleil Isaza Tuzman issued a bullish statement, saying that the company “could deliver higher operating margins in the short-term if we chose to, [but] our focus is on long-term dominance in our industry segment, and we see a unique window of opportunity to extend our leadership at this time.”

Part of its plan for industry dominance appears to include further M&A activity, and the company announced that it has recently hired botique investment bank Allen & Company LLC as a strategic advisor.  

Last month the Kit digital filed a shelf registration with the SEC under which it may to sell up to $250m in stock.  At that time, Tuzman explained the move, saying “to the extent that it became feasible to acquire one or more of our top competitors at a reasonable valuation, it is important we have the flexibility to do so.”

In today’s statement, Tuzman again hinted again at impending acquisitions, including the potential purchase of a major competitor.  “Consistent with our previously stated strategic mandate, we continue to look at relatively small acquisitions that add geographical and sales vertical reach, which we intend to fund out of our treasury, cash from operations or limited assumption of debt. At the same time, we are considering more ‘transformative’ opportunities, where we might be able to acquire a top competitor and significantly extend our market share.”

Tuzman also talked about shedding some company assets, saying the company is “currently considering the possibility of spinning out a material portion of our professional services and non-SaaS activities that may be more beneficial to work with on an arms’ length basis, and allow us to focus even more on our core SaaS business,” and that such a deal might come as early as the fourth quarter. 

Kit digital will release its complete third quarter results in two weeks.

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You can read the full Kit digital preliminary Q3 earnings announcement here.

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More Broadcast M&A: KIT Digital Buys MAM Provider Brickbox Digital Media

broadcast industry technology trends, broadcast technology market research, Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
Sep 24 2010

IPTV asset management technology supplier Kit Digital announced today that it has acquired privately-held Brickbox Digital Media for $10.1m in cash and stock. 

In addition to the upfront purchase price, the deal also includes an earn-out provision whereby Kit Digital will pay Brickbox shareholders 10% of forward revenues from Brickbox over a four-year period, subject to a $20 million annual revenue threshold for each year and certain profitability thresholds.

This is the third acquisition Kit Digital has made this month.  Just before the IBC show, the company announced that it had purchased both UK-based systems integrator Megahertz from Canadian parent Azcar, and Accela Communications, a provider of software and services aimed at the production, delivery and measurement of interactive IP-based video content.

Based in the Czech Republic, Brickbox provides asset management solutions that act as an intermediary between content owners and distributors, offering products and services that include mezzanine file management, localization, digital cinema mastering, and authoring of media for replication.

Brickbox which has  approximately 85 employees in its main Prague and Sofia offices as well as additional staff in the U.S., UK, Bulgaria, Hungary, Poland, Romania and Slovakia, earned a profit of $1m on $12m of revenue over the past 12 months. The company’s clients include 20th Century Fox Entertainment, Warner Home Video, Universal Studios, and numerous European content distributors.

Kit Digital chairman and CEO Kaleil Isaza Tuzman  said that Brickbox was “a choice acquisition for us which we had our eyes on for some time, extending our capabilities and commercial reach in premium content management and services for the major and ‘mini-major’ Hollywood studios.”

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You can read Kit Digital’s full press release about the purchase of Brickbox here.

You can read the full press release about Kit Digital’s purchase of Accela and Megahertz here.

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Kit Digital Reports Strong Q2, Gives Positive Guidance, Hints at Acquisitions

broadcast technology market research, Broadcast technology vendor financials | Posted by Joe Zaller
Aug 17 2010

IPTV technology provider Kit Digital reported their Q2 results Monday.  Revenue for the quarter came in at $23.1m, an increase of 120% versus the same period last year, and an increase of 33% versus the previous quarter.

About 75% of the company’s revenue during the quarter came from fees for the company´s “VX” IP video platform solutions, while approximately 25% came from professional services.

On a geographic basis revenue was split as follows, 41% from EMEA; 36% from the Americas and 23% from Asia-Pacific.

Net loss for the second quarter 2010 included $3.1 million in non-cash charges, including $1.1 million in stock-based compensation and $2.0 million of depreciation and amortization; a non-cash derivative gain of $2.4 million; $3.3 million in integration expenses related to the reorganization and integration of recently acquired companies; and $886,000 in merger and acquisitions expenses, including investment banking advisory and legal fees.

The company’s earnings press release highlighted several key client wins during the quarter, and also provided positive guidance for the rest of the year.  Kit Digital chairman & CEO, Kaleil Isaza Tuzman said “As we move through the midpoint of Q3, we remain on track to exceed our original organic financial targets for fiscal 2010… We estimate our organic growth in the second quarter exceeded 50% on a year-on-year basis.”

Gavin Campion, president of KIT digital, said that the company is “committed to expanding our industry leadership position by going from our current estimated 15%-20% global market share to more than 50% over the next couple of years, by complementing strong organic growth with highly selective, accretive acquisitions.” Campion also said that the company continues to see opportunity in the mobile market. 

You can read the full Kit Digital earnings press release here.

Which method of content delivery will grow the fastest?

content delivery, market research, technology trends | Posted by Joe Zaller
Jun 24 2009

It’s not news that the delivery of video content is changing dramatically.  Consumers want an anywhere, anytime media experience; and content owners are doing all they can to meet their needs.   But with so many choices now available, I was curious to know which delivery method broadcast industry insiders think will grow the fastest.

To find out, I included the following question in the 2009 Big Broadcast Survey:

 “Which of these delivery methods do you think will grow the fastest over the next three years, in percentage terms?”

  • WiMAX
  • Terrestrial
  • Cable
  • Downloads to mobile devices
  • Satellite
  • Mobile TV
  • IPTV
  • Broadband / Streaming (web TV)

 

Almost 5000 people in 110 countries responded and their answers are shown below, broken down by geography to show regional variation:

 

Which method of content delivery do you think will grow the fastest over the next three years, in percentage terms?

Which method of content delivery do you think will grow the fastest over the next three years, in percentage terms?

 

Keep in mind that this question asked which delivery method will grow the fastest, not which one do you think will win in the long-term, or which one are you willing to pay $50 per month for.  It also asked about growth in percentage terms, so if a distribution method is small today it can grow quickly in percentage terms from a small base, while it’s much more difficult for established content delivery methods such as cable & satellite to grow in percentage terms.

Nevertheless, the respondents expect to see major changes in content delivery methods over the next three years, led by “Broadband / Streaming.”    In fact, with the exception of Asia, all geographies expect broadband / streaming delivery of content to be the fastest growing delivery methods, which is interesting news for CDNs.  In Asia (excluding China), IPTV is predicted to be the fastest growing content delivery medium.  All territories therefore expect the current incumbents (satellite, cable and terrestrial) to lose market share to the internet and to a lesser extent, mobile.

Although the picture is relatively similar across all geographical regions, there are a few key differences, reflecting the relative maturity of each market.  For example, in most markets satellite is already a well-established channel with limited future growth; however in China the picture is different with expected growth being second only to broadband / streaming content delivery.  Chinese respondents also predict the largest take-up of mobile TV.

That’s what broadcast industry insiders think.  What about you?

 
 

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