Posts Tagged ‘Julien Signes’

Envivio Issues Second Profit Warning in Past Three Quarters

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Nov 13 2012

Video encoding and transcoding specialist Envivio reported that it now expects its revenue for the quarter ending October 31, 2012 to be in the range of $7m to $7.5m.

This is approximately 30% below the guidance provided by the company last quarter.

At that time, Envivio said that it expected its revenue for the quarter ending October 31, 2012 to be in the range of $10m to $11m, with a non-GAAP loss per share in the range of ($0.16) to ($0.12), non-GAAP operating loss in the range of $4.1m to $3.2m, and non-GAAP gross margins in the range of 59 to 62 percent.

Envivio raised  approximately $70 when it went public on the NASDAQ exchange in April 2012.

This is the second time in its three quarters as a public company that Envivio has issued a profit warning.

Prior to the company’s Q2 2012 results Envivio warned that its revenue would be 35% to 41% lower than the bottom end of Envivio’s previously issued guidance.

“The global slowdown in spending by our service provider customers has persisted, with sales cycles continuing to lengthen,” said Julien Signes, president and CEO, Envivio. “While we remain confident in maintaining our technology leadership and competitive positioning, as well as the long term growth of the multi-screen video processing market, we acknowledge that near-term visibility of demand remains limited. As a result, we are continuing to execute on the measures we discussed last quarter to manage our expenses and are reviewing our sales execution and other aspects of our strategy.”

 

Including today’s announcement from Envivio, a number of broadcast vendors have reported sluggish sales or have issued profit warnings this year:

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Related Content:

Press Release: Envivio Provides Preliminary Revenue Results for Third Quarter Fiscal 2013 Nasdaq

Envivio Reports Lower Q2 2013 Results, Takes Actions to Reduce Operating Costs

Envivio Warns that its Q2 FY2013 Revenue Will be Significantly Below Previously Issued Guidance

Envivio Beats Expectations in First Quarter as Public Company as Revenue Jumps 35 Percent

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Envivio Reports Lower Q2 2013 Results, Takes Actions to Reduce Operating Costs

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Sep 07 2012

Video encoding and transcoding specialist Envivio, which went public on the NASDAQ exchange in April 2012, reported that revenue for its second quarter as a public company was $10.8m, down 6% versus the same period a year ago, and down 19% versus the previous quarter.

The GAAP net loss for the quarter was $4.3m, or $0.16 per share, compared to net income of $55,000, or $0.00 per share, during the same period a year ago, and a GAAP net loss of $2.2m, or $0.17 per share last quarter.

The Non-GAAP net loss for the quarter was $3.5m or $0.13 per share, compared to net income of $425,000 or $0.03 per share last year and a loss of $1.5m, or $0.12 per share last quarter.

Gross margins for the quarter were 62%, versus 64% last year, and 61.7% last quarter.

The results are in-line with the profit warning Envivio issued last month.  At that time the company said its revenue for the second quarter of 2012 would be in the range of $10m to $11m (35% to 41% lower than the bottom end of its previously issued guidance), non-GAAP net income / loss in the range of a loss of $460,000 to a profit of $720,000, and non-GAAP gross margins for the quarter to be in the range of 62% to 64%.

Company CEO Julien Signès attributed the company’s performance in the quarter to project delays by our service provider customers and the impact of the macroeconomic environment. “We are disappointed in our quarterly performance and have taken actions to reduce our cost structure.”

As part of this cost containment exercise, Envivio said it has begun cutting its operating expenses, and laid off nine employees in August 2012.  The company will take a one-time charge of approximately $275,000 in the third quarter of fiscal 2013 for severance and other related benefits related to the cost-cutting program.

The company ended the quarter with cash, cash equivalents and short-term investments of $63.2m.

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Outlook

Envivio says that it expects it revenue for its third quarter to be in the range of $10m to $11m, with a n on-GAAP loss per share in the range of ($0.16) to ($0.12), non-GAAP operating loss in the range of $4.1m to $3.2m, and non-GAAP gross margins in the range of 59 to 62 percent.

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Related Content:

Press Release: Envivio Reports Second Quarter Fiscal 2013 Financial Results

Envivio Warns that its Q2 FY2013 Revenue Will be Significantly Below Previously Issued Guidance

Previous Quarter: Envivio Beats Expectations in First Quarter as Public Company as Revenue Jumps 35 Percent

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Envivio Warns that its Q2 FY2013 Revenue Will be Significantly Below Previously Issued Guidance

broadcast technology market research | Posted by Joe Zaller
Aug 13 2012

Video encoding and transcoding specialist Envivio, which went public on the NASDAQ exchange in April 2012, said that its expects revenue for its second quarter as a public company to be in the range of $10m to $11m.

This forecast is 35% to 41% lower than the bottom end of Envivio’s previously issued guidance of revenue in the range of $17m to $18m. At that it issued the previous guidance, the company also gave broad profitability guidance saying it non-GAAP net income / loss would be in the range of a loss of $460,000 to a profit of $720,000. The company also said at that time that it expected gross non-GAAP gross margins for the quarter to be in the range of 62% to 64%.

The announcement immediately sent the company’s shares down by more than 40% in after-hours trading.  The company’s stock is now down about 60% since its IPO less than four months ago.

In addition to being below its previously issued guidance, Envivio’s revised forecast is also 18% to 25% lower than its result for the previous quarter, when it posted a GAAP net loss of $2.2m on revenue of $13.4m.

“Our preliminary revenue results reflect a general slowdown in spending by our service provider customers, in particular in North America and Western Europe, which have been two key growth areas of the Company in the last two years,” said Julien Signès, president and CEO, Envivio. “During the second quarter, we did not see any changes to our competitive positioning, and our win/loss ratio in the multi-screen market remains consistent with prior experience. Despite this, we experienced a slowdown of major project implementations and a lengthening of sales cycles, which we attribute to the current global economic environment. We are disappointed in these results and are conducting a full review of our operations.”

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Related Content:

Press Release: Envivio Provides Preliminary Revenue Results for Second Quarter Fiscal 2013

Envivio Beats Expectations in First Quarter as Public Company as Revenue Jumps 35 Percent 

Envivio Files for $85 Million Goldman Sachs Led IPO

April 2012 Envivio S-1/A filing (IPO Documents)

Envivio Closes $16.5 Million Fundraising Round

Envivio D/A Filing: Disclosed newly raised funds

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Envivio Beats Expectations in First Quarter as Public Company as Revenue Jumps 35 Percent

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
May 31 2012

Video encoding and transcoding specialist Envivio reported that its revenue for the first quarter of its FY 2013 was $13.4m, up 35% from the same period a year ago, and down 14% from the seasonally stronger previous quarter.  82% of revenue during the quarter came from existing customers.

The company posted a GAAP net loss for the quarter of $2.2m, or $0.17 per share, compared to a net loss of $1.2m or $0.09 per share last year, and GAAP net income of $800,000 last quarter. The company attributed the net loss in the quarter to seasonality as well as investments in product development and sales & marketing initiatives, which increased substantially during the quarter.

On a non-GAAP basis, the company posted a loss of $1.5m, or $0.12 per share, compared to a non-GAAP loss of $800,000 ($0.06 per share) last year, and non-GAAP net income of $1.2m last quarter.

The non-GAAP operating loss for the quarter was $1.5m versus a non-GAAP operating loss of $800,000 last year and a non-GAAP operating profit of $1.4m last quarter.

The results were better than the consensus estimates of analysts, who were looking for a loss of $0.18 per share on revenue of $13m. Nevertheless, the company’s stock sold off by more than 10% in early trading before climbing into positive territory by the end of the day.

Direct sales accounted for 27% of revenue in the quarter versus 39% a year ago.  The company said the increase in third-party revenue was due to large sales to two channel partners — Hauwei and Ericsson — who accounted for 18% and 11% of revenue respectively.  Sales to Hauwei were for projects in the Middle East and APAC, while sales to Ericsson were for projects in EMEA.

On a geographic basis:

  • Americas revenue was $2.4m, down 20% versus last year, and down 66% versus last quarter
  • EMEA revenue was $7.5m, up 74% versus last year and up 21% versus last quarter
  • APAC revenue was $3.5, up 35% versus last year, and up 46% versus last quarter

 

On a segment basis:

  • Product revenue in the quarter was $12.1m (90% of total revenue) versus $9.3m (94%) last year and $14m (90%) last quarter. 
  • Revenue from software products in the quarter was $1.06m (7.9% of total revenue), including new sales and upgrades to existing software customers.  Envivio CFO Eric Miller said that over time the company expects software-only sales to approach 20% of revenue.
  • Service and support revenue were $1.3m (10% of total revenue), up 109% versus last year, and down 19% versus last quarter.

 

Gross margins in the quarter were 61.7% up from 59.5% last year, and 54.8% in the previous quarter.  The company said that the year over year increase in gross margins was due to higher software-only sales, but was partially offset by lower gross margins in APAC. On a non-GAAP basis gross margins for the quarter were 61.7% versus 59.7% last year and 64.8% last quarter. Miller said the company’s long term target for gross margins is 66-68%, which he says is still a realistic goal for the company. 

Expenses in the quarter were up sharply across the board. Non-GAAP operating expenses for the quarter were $9.7m, up 45% last year, and up 13% versus last quarter. Non-GAAP R&D expenses were $2m, up 33% versus last year, and up 11% versus last quarter. Non-GAAP sales & marketing expenses were $5.6m, up 65% versus last year, up 14% versus last quarter. The company said the increase in sales and marketing costs were due to increased investments in sales and service capacity and marketing programs.  Non-GAAP G&A expenses in the quarter were $2.1m, up 17% compared to last year, and up 11% compared to last quarter.

The company ended the quarter with $75.3m in cash; and 152 employees, up from 117 employees last year and 146 employees last quarter.

 

Guidance

Envivio says its expects its Q2 FY 2013 revenue to be in the range of $17m to $18m, with gross non-GAAP gross margins of 62% to 64%. The company gave broad profitibilty guidance, saying it non-GAAP net income / loss would be in the range of a loss of $460,000 to a profit of $720,000.

 

“In our first quarter as a public company, we delivered strong year-over-year revenue results, which reflect our leadership in the growing multi-screen video processing market,” said Julien Signes, president and CEO, Envivio. “In this quarter we added 17 new customers, expanded sales of our new Halo product and began deployments of satellite TV solutions. We are committed to continuing our growth strategy, and the proceeds from our IPO will provide the flexibility to expand our marketing and sales initiatives, and further develop innovative, industry-leading products.”

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Related Content:

Press Release: Envivio Reports First Quarter Fiscal 2013 Financial Results

Envivio Files for $85 Million Goldman Sachs Led IPO

April 2012 Envivio S-1/A filing (IPO Documents)

Previous Quarter: Envivio Reports Revenue Was Up 69 Percent in FY 2012, Updates IPO Documents

Envivio Closes $16.5 Million Fundraising Round

Envivio D/A Filing: Disclosed newly raised funds

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Envivio Shares Close Below IPO Price on First Day as Public Company

Broadcast technology vendor financials, Quarterly Results, SEC Filings | Posted by Joe Zaller
Apr 26 2012

Video encoding and transcoding specialist Envivio became a public company yesterday, trading on the NSADAQ market under the symbol ENVI.  In honor of the occasion, Envivio’s Founder & CEO Julien Signes rang the NASDAQ Market’s opening bell.

 

 

The company raised approximately $70m by selling 7.8m shares at $9 each.  Envivio had hoped to raise about $85m by selling shares for $10 – $12. According to a Wall Street Journal article, “Envivio’s lowered pricing shows that investors continue to be selective about the IPO valuations they are willing to accept, even in the technology sector.”

Although Envivio’s shares initially traded as high as $9.35 per share, the stock settled back to $8.49 by the end of its first day as a public company, 5.7% below the IPO price.

For the full year ended January 31, 2012 Envivio’s revenue was $50.6m, an increase of 69% over the previous year.  The company attributed the increase in sales to increased consumer demand for multi-screen video services, and continued growth into the North American market.

Envivio’s net profit for the full year was $138,000, versus a net loss of $2.5m during the previous year. Operating income for the year was $659,000, versus a loss of $1.99m last year.  Gross margins for the year were 63%, up from 62% during the previous year.

The company had $27.4m in cash, up from $10m at the end of last year.

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Related Content:

Envivio Files for $85 Million Goldman Sachs Led IPO

WSJ Article: Envivio Loses Early Gains

April 2012 Envivio S-1/A filing

Envivio Reports Revenue Was Up 69 Percent in FY 2012, Updates IPO Documents

Envivio S-1/A Filing: Ammended S-1 (IPO) filing with the SEC

Envivio Closes $16.5 Million Fundraising Round

Envivio D/A Filing: Disclosed newly raised funds

TechCrunch Article: On-Demand Video Services Company Envivio Files To Go Public

Previous year: Envivio Says it Doubled Revenue in Fiscal 2011

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