Posts Tagged ‘OTT Video’

Disney Expected to Acquire 33% Stake in BAM Tech

Analysis | Posted by Josh Stinehour
Jul 05 2016

Bloomberg is reporting Disney has agreed to acquire a 33% equity stake in BAM Tech, the recent spin-out of MLB Advanced Media (“MLBAM”), the streaming technology division of Major League Baseball (“MLB”).  Forbes is separately reporting the deal is tracking toward completion later this summer.

Disney is reported to be purchasing the 33% equity stake in BAM Tech for $1.16 billion, implying a valuation of $3.5 billion.

As part of the investment, Disney also gains the right to purchase an additional 33% of BAM Tech during the next four years.  Should Disney exercise the option, it would become the majority owner of BAM Tech.  The NHL currently holds a 7% – 10% equity position in BAM Tech based on the August 2015 partnership deal between the companies.

MLBAM is jointly owned by all 30 MLB franchises, with each holding a 1/30 ownership interest.  BAM Tech comprises the technology service business of MLBAM serving third-parties (i.e. not MLB).  The August 2015 spin-out of BAM Tech was intended to enable MLBAM to accelerate commercial initiatives with third parties unaffiliated with MLB.

MLBAM is already responsible for several high-profile streaming services including CBS/Turner’s March Madness Live, HBO Now, PGA Tour Live, Sony Playstation Vue, watchESPN, and the WWE Network.

At the 2016 Re/code summit, Bob Bowman, the CEO of MLBAM, said he expects revenue of $1.2 billion to $1.3 billion during 2016 (a substantial increase over 2015 revenue of $800 million).  Mr. Bowman also stated a revenue split of 80 / 20 between baseball and third party revenues.  Those figures suggest BAM Tech was an approximately $160 million revenue business in 2015 and is set to grow to $240 – $260 million (50+% year-over-year).

Using those revenue estimates for BAM Tech, the Disney investment values the business at an approximate revenue multiple of 14x forward-looking sales (Note: several estimates were used to arrive at that valuation figure).  It is unknown whether part of this consideration accounts for the value of the option Disney received, which would allow Disney to gain majority control.  All things being equal, purchasing control should come at a premium.

 

Related Content:

Bloomberg Article Reporting Disney Investment

Forbes Article on Disney Investment in MLBAM

 

© Devoncroft Partners 2009-2016.  All Rights Reserved.

 

 

Report: Apple Planning Online Video Launch Featuring 25 Broadcast Channels

Online Video, OTT Video | Posted by Joe Zaller
Mar 17 2015

silver-apple-logo

Just a week after the announcement that Apple will be the exclusive launch partner for the HBO Now streaming service, a Wall Street Journal article reports the company is planning to introduce an online TV service featuring up to 25 broadcast channels, including content from ABC, CBS, and Fox.

The WSJ reports that media executives they interviewed believe Apple in planning to charge $30 to $40 per month for the service, which it aims to announce in June and launch in September.

This is not the first time there have been rumors about the launch of an Apple TV service. In 2012 Jefferies & Co. analyst James Kisner said in a report that his industry contacts suggest that “at least one major North American cable system operator is working to estimate how much additional capacity may be needed for a new Apple device on their broadband data network.”

Last year the WSJ reported: “Apple was in talks with Comcast to team up on a streaming TV service that would use an Apple set-top box and get special treatment on Comcast’s cable pipes to bypass congestion on the Web. Apple had discussions since at least mid-2012 with Time Warner Cable, but those talks came to a standstill when the company became a takeover target for rival operators. Time Warner Cable struck a deal—still awaiting regulatory approval—in February 2014 to sell itself to Comcast.”

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Related Content:

WSJ Article: Apple Plans Web TV Service in Fall

HBO Reportedly Planning April 2015 Streaming Launch, Will Charge $15 per Month

Intel, Apple and Others Rethink How We Watch TV – WSJ.com

Analyst Says Apple TV Launch “Imminent,” Could Benefit Arris

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© Devoncroft Partners 2009 – 2015. All Rights Reserved.

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HBO Reportedly Planning April 2015 Streaming Launch, Will Charge $15 per Month

Online Video, OTT Video | Posted by Joe Zaller
Mar 05 2015

According to a report from Reuters, HBO is in discussions with at least five companies, including Apple, Google, and Tivo, to be launch partners for its previously announced HBO Now streaming service

Citing reports from The International Business Times and Bloomberg, Reuters notes that HBO plans to introduce the new streaming service in April 2015, and is expected to charge $15 per month.

According to Bloomberg, HBO CEO Richard Plepler has said he is looking to reach an estimated 10 million consumers who get Internet service but don’t subscribe to cable or satellite TV. Plepler has said he wants to work with HBO’s longtime cable distributors as well as new ones.

 

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Related Content:

International Business Times: HBO In Talks With Apple To Be Launch Partner For Coming Web Service ‘HBO Now’

Bloomberg: Apple, Google Said to Be in Talks With HBO to Carry Web Channel

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© Devoncroft Partners 2009 – 2015. All Rights Reserved.

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Broadcast Vendor M&A: Telestream Acquired by Genstar Capital

Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
Jan 07 2015

Telestream_Logo (new in 2014)

Transcoding and workflow vendor Telestream announced that it has entered into a definitive agreement to be acquired by Genstar Capital, a San Francisco-based private equity firm that manages funds with total capital commitments of over $3 billion and targets investments focused on selected sectors within the financial services, software, industrial technology, and healthcare industries.

The seller was Thoma Bravo, the private equity firm that purchased Telestream in 2011 for an undisclosed amount.

Terms were not disclosed, but Telestream said that “the transaction recognizes the company’s significant growth and positions it well for the next phase of expansion.”

The deal comes just four months after Telestream issued a statement saying that its transcoding and workflow revenue increased by 40 percent in 2013 versus 2012, and had achieved profitable growth for the last 14 years. At that time, company CEO Dan Castles attributed the company’s impressive track-record of growth to both innovation and management stability.

Telestream will continue to operate as an independent entity, and its existing management team will continue with the company in their current roles.

Thoma Bravo said in a statement that since it bought the company, Telestream saw “incredible growth on several fronts,” thanks to new product launches, strategic M&A, and expanding its executive and sales team to drive further growth. “Thoma Bravo worked in partnership with management over our three year ownership period to invest in the business, make acquisitions and accelerate the company’s growth,” said Holden Spaht, a managing partner at Thoma Bravo. “The company today is a clear leader in the digital video space with the deepest set of products and services in the market.”

Castles issued an upbeat statement about the deal, and telegraphed he believes that under Genstar, Telestream might continue to use strategic M&A and become an industry consolidator.

“Genstar’s mid-market focus and deep expertise in the software industry will enable Telestream to further accelerate our growth,” said Castles. “Over the past several years, Telestream has experienced its most significant growth. We look forward to our new partnership with Genstar as we increase our investment in existing products, accelerate our reach into new customer verticals and fuel our next phase of development through additional M&A activity. Our product portfolio and business models are well suited for the Genstar environment.”

“Genstar has been following Telestream closely and this acquisition is consistent with our strategy of investing in vertical market software companies,” said Eli Weiss, a Managing Director of Genstar. Telestream is a leader in its market and has posted profitable growth since its founding. As even more content is generated and viewed on more devices, we believe the company will continue its demonstrated growth trajectory, and we will support Telestream’s experienced and successful management team to expand organic growth via new product releases and pursue add-on acquisitions.”

The deal is expected to close in mid-January 2015.

 

Genstar’s acquisition of Telestream is the latest in a series of deals related to online video and transcoding.

As broadcasters and media companies scramble to deploy multi-screen services, transcoding is seen by many as a key technology.  As a result, transcoding has also attracted its fair share of financing and M&A activity.  Here’s a quick run-down of some of the recent transcoding deals and related-financial news:

 

 

 

  • In April 2014, Imagine Communications acquired Digital Rapids for an undisclosed amount

 

  • In April 2014, Dalet acquired Amberfin for an undisclosed amount

 

  • In January 2013, Amazon unveiled its “Amazon Elastic Transcoder.” Based on the company’s Amazon Web Services (AWS) cloud computing platform, the Elastic Transcoder the service provides “a highly scalable, easy to use and a cost-effective way for developers and businesses to transcode video files from their source format into versions that will playback on devices like smartphones, tablets and PCs.”

 

  • In August 2012 Brightcove bought Zencoder, a 2-year old start-up with $2m in revenue for $30m, and subsequently launched a cloud based transcoding service at IBC 2012

 

 

 

 

 

 

 

 

 

 

  • RGB Networks bought transcoding vendor Ripcode in 2010

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Related Content:

Telestream Says Transcoding and Workflow Revenue Increased by 40 Percent Last Year

Broadcast Vendor M&A: Telestream Buys Captioning Provider CPC

More Broadcast Vendor M&A: Private Equity Firm Acquires Telestream

More Broadcast Vendor M&A — Telestream Purchase of Anystream Now Official

Elemental Technologies Says Revenue Increased by 50 Percent in 2013

Elemental Technologies Says Revenue Doubled in 2012 to $21 Million as Transcoding Technology Continues to Grow

Elemental Closes $13 Million Funding Round, Latest in Series of Transcoding Deals

Harmonic Moves Transcoding Technology to the Cloud, Launches AWS-Based Service

Amazon Launches Scalable Cloud-Based “Elastic Transcoder” Service – A Potential Disruptor in a “Hot” Technology Space

More Broadcast Vendor M&A: Brightcove Buys Zencoder for $30 Million in Latest Video Transcoding Deal

More Broadcast vendor M&A: Wohler Buys RadiantGrid, Latest in Series of Transcoding Deals

Envivio Files for $85 Million Goldman Sachs Led IPO

Envivio Closes $16.5 Million Fundraising Round

More Broadcast Vendor M&A: Cisco to Buy Inlet Technologies for $95m

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© Devoncroft Partners 2009 – 2015. All Rights Reserved.

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Elemental Technologies Closes $14.5 Million Series D Funding Round, Adds Telstra and Sky as Investors

Broadcast technology vendor financials, Broadcast Vendor M&A, Broadcaster Financial Results | Posted by Joe Zaller
Dec 22 2014

Elemental Technologies announced that it has closed a $15m series D funding round, led by led by Australian telco giant, Telstra, who in August 2014 acquired online video platform provider Ooyala for $360m.

The company says it will use the funds to “accelerate worldwide growth and expand its suite of software-defined video (SDV) solutions to support the whole of the IP video delivery chain.”

Joining Telstra in the series D funding is leading European pay TV and broadband provider BSkyB, along with existing Elemental investors, General Catalyst Partners, Norwest Venture Partners and Voyager Capital; also participated in the funding round. Missing from this list is Disney-backed Steamboat ventures, which participated in Elemental’s previous investment rounds.

The deal brings the total amount of funding raised by Elemental to just under $45m. In May 2012 Elemental announced it closed a $13m fundraising round led by Norwest Venture Partners (NVP).   In 2010, the company closed a $7.5 funding round, led by General Catalyst, Voyager Capital and Steamboat Ventures.

Elemental did not provide details on the company’s valuation following the deal, what percentage of the company is now owned by Telstra and Sky, or whether the company’s existing investors have maintained their same percentage ownership after the latest deal.

However, a press release from Sky, indicates the pay TV platform has invested $4m into the company though its “ongoing program of investing in innovative startups” that to date include cross-platform network Whistle Sports; online video aggregator Pluto.TV, and US ad tech firm Sharethrough.

According to published reports, Elemental had 142 employees and revenue of $32.3m for the full year 2013, and had grown top-line revenue by 887% over the previous three years.  The company says its products have been adopted by more than 600 customers in more than 55 countries.

Although there are no financial metrics available for 2014, during an April 2014 panel of vendor CEOs that I moderated as part of Shifting Media Economics: Impact on Strategy, Finance, and Technology, which is co-produced by Devoncroft and the NAB Show, Elemental founder and CEO Sam Blackman told an audience of nearly 400 industry executives that he expected his company to achieve growth of more than 50% this year.

The fact that very large end-users are investing in Elemental is an interesting development.

According to a statement, Telstra has started to roll out 4G LTE services on new 700MHz spectrum to deliver ultra-fast mobile data speeds, and the telco plans to “leverage the entire Elemental product line, with a specific focus on Elemental Delta for its next-generation content delivery services.”

“With its software-defined video processing and delivery solutions, Elemental is at the forefront of video delivery and the evolution of content monetization. Our investment in Elemental will enable Telstra to create value for our global media customers,” said Mark Sherman, Global Enterprise and Services Managing Director, Ventures, for Telstra. “Elemental’s unique offer provides the flexibility and scalability to ensure a great customer experience despite high network traffic demands.”

Sky says that is investment in Elemental “will give the company valuable access to an entertainment company that is at the forefront of multi-platform, multi-device video – delivering OTT content at scale to millions of customers.”

Emma Lloyd, Sky’s Director of Corporate Business Development and Startup investments, said “Internet-delivered video is fundamental to Sky’s business and will continue to grow in importance as more and more customers access content across multiple screens and devices.  By investing in Elemental, we not only strengthen our existing commercial partnership, but we have the opportunity to share perspectives and insight into how the combination of new technologies and changing customer demands will shape the video landscape of the future.”

Elemental’s take on the deal was outlined by Blackman in a blog post published today, which says:

“As with any financing round, the timing and the deal need to be right. But fundamentally, it boils down to a shared belief that we can all evolve faster if we’re strategically aligned around a core goal of transforming the media landscape. In many ways, 2015 will mark an inflection point for the video industry as content creators and aggregators deliver ever-more innovative multiscreen services. Furthermore, as the number of video-capable IP devices heads to 15 billion according to Ericsson, next-generation software-defined video infrastructure is required to support gigascale video distribution

With an industry inflection point upon us, this alignment among market leaders will speed the transition to software-defined video architectures. For Telstra, Elemental’s video solutions are fundamental to its next-generation network strategy, which it is rapidly evolving to software, virtualization and cloud-based workflows. As our shared news today indicates, Telstra will use Elemental products across its large portfolio of media properties. For Sky, Elemental solutions support its current multiscreen OTT Sky Go properties, and as SDV architectures continue to mature, we believe there will be additional opportunities to collaborate in the future.

Together, Telstra, Sky and Elemental can further the progress towards a shared vision of software-defined video solutions that are highly scalable, flexible and upgradable and which lower the barriers to bringing content to any device.”

 

Today’s Elemental announcement is the latest in a series of deals related to online video and transcoding. As broadcasters and media companies scramble to deploy multi-screen services, transcoding is seen by many as a key technology.  As a result, transcoding has also attracted its fair share of financing and M&A activity.  Here’s a quick run-down of some of the recent transcoding deals and related-financial news:

 

 

  • In April 2014, Imagine Communications acquired Digital Rapids for an undisclosed amount

 

  • In April 2014, Dalet acquired Amberfin for an undisclosed amount

 

  • In January 2013, Amazon unveiled its “Amazon Elastic Transcoder.” Based on the company’s Amazon Web Services (AWS) cloud computing platform, the Elastic Transcoder the service provides “a highly scalable, easy to use and a cost-effective way for developers and businesses to transcode video files from their source format into versions that will playback on devices like smartphones, tablets and PCs.”

 

  • In August 2012 Brightcove bought Zencoder, a 2-year old start-up with $2m in revenue for $30m, and subsequently launched a cloud based transcoding service at IBC 2012

 

 

 

 

 

 

 

 

 

 

  • RGB Networks bought transcoding vendor Ripcode in 2010

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Related Content:

Press Release: Elemental Fuels Global Ambitions with $14.5M in Telstra-led Financing

Sky Press Release: Sky Invests in Multiscreen Video Leader Elemental

Telstra Buys Online Video Platform Ooyala for $360 Million Equity Value

Ooyala Receives $43 Million Investment From Telstra To Accelerate Adoption of Its Market-leading Video Analytics

Telestream Says Transcoding and Workflow Revenue Increased by 40 Percent Last Year

Elemental Technologies Says Revenue Increased by 50 Percent in 2013

Elemental Technologies Says Revenue Doubled in 2012 to $21 Million as Transcoding Technology Continues to Grow

Elemental Closes $13 Million Funding Round, Latest in Series of Transcoding Deals

Harmonic Moves Transcoding Technology to the Cloud, Launches AWS-Based Service

Amazon Launches Scalable Cloud-Based “Elastic Transcoder” Service – A Potential Disruptor in a “Hot” Technology Space

More Broadcast Vendor M&A: Brightcove Buys Zencoder for $30 Million in Latest Video Transcoding Deal

More Broadcast vendor M&A: Wohler Buys RadiantGrid, Latest in Series of Transcoding Deals

Envivio Files for $85 Million Goldman Sachs Led IPO

Envivio Closes $16.5 Million Fundraising Round

More Broadcast Vendor M&A: Private Equity Firm Acquires Telestream

More Broadcast Vendor M&A — Telestream Purchase of Anystream Now Official

More Broadcast Vendor M&A: Cisco to Buy Inlet Technologies for $95m

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Telstra Buys Online Video Platform Ooyala for $360 Million Equity Value

Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
Aug 13 2014

Telstra, Australia’s largest telecommunications provider, has paid $270m to purchase 75% of online video platform provider Ooyala. When the deal closes, Telstra will own 98% of Ooyala.

Telstra previously invested $61m over two funding rounds to acquire 23% of Ooyala. In June 2012, Telstra participated in a $35m fundraising round. In December 2013, Telstra invested an additional $43m in Ooyala. 

The deal values Ooyala at $360m, which slightly overstates the cash price incurred by Telstra since its actual cash outlay was $331 million ($270m + $61m).

$360m is a strong valuation for Ooyala, which has 330 employees and is forecasting revenue of $65m for calendar year 2014.  It’s also a strong valuation in the context of an analogous public comparable Brightcove, which trades on the NASDAQ.

Brightcove’s stock presently trades at an equity value of approximately $200 million, though Brightcove is meaningfully larger than Ooyala on a revenue basis. Assuming similar gross margins as Brightcove, these data points would suggest Ooyala has yet to reach profitability.  However, it would appear prioritizing growth over profitability was a beneficial strategy since the implied revenue multiple is 5.5x and the cash-on-cash return to investors was approximately 4.4x (as detailed below).

Ooyala was founded in 2007 and raised approximately $122 million before the acquisition by Telstra.  $61 million of this amount was from Telstra itself; the remaining $61 million included participation from Ropart Asset Management, Amazon Web Services, Sierra Ventures, Rembrandt Venture Partners, The CID Group, ITOCHU Technology Ventures, Motorola Mobility Ventures, and EDB Investments Pte. Ltd.

Ooyala is the first investment by Telstra’s Global Applications & Platforms group, whose mission is to create “long-term global growth in markets that are adjacent to Telstra’s core business, where software disrupts traditional business models.”

In announcing the transaction, Ooyala’s CEO Jay Fulcher posted an open letter to Ooyala employees, which enthusiastically outlines the rationale for the transaction and discussed the future market opportunity.  “Our opportunity is enormous” said Fulcher. “The market for the technologies and services we provide is will be [sic] worth tens of billions in the next few years. To win requires a heavy investment in people, infrastructure, R&D and technology.”

The transaction will require US regulatory approval, though is expected to close within 60 days.

Ooyala will operate as an independent subsidiary of Telstra, retaining both its brand and management team.

In 2013, Telstra generated more than $AUD 26 billion in revenue.

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Related Content:

Press Release: Telstra to acquire leading video platform company Ooyala

An open letter to Ooyala employees from CEO Jay Fulcher

Press Release: Ooyala Receives $43 Million Investment From Telstra To Accelerate Adoption of Its Market-leading Video Analytics

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Bankruptcy Court Approves Kit Digital Restructuring, Company to Rebrand as “Piksel” Before IBC 2013

broadcast industry technology trends, Broadcast technology vendor financials, SEC Filings | Posted by Joe Zaller
Aug 06 2013

After more than a year of rumor, speculation, management changes, and shareholder lawsuits, it appears that the Kit Digital roller coaster ride is finally coming to an end – with a successful outcome for company management.

The one-time high-flying online video delivery provider announced that its Plan of Reorganization under Chapter 11 will be confirmed by the U.S. Bankruptcy Court for the Southern District of New York.

KIT digital filed for voluntary bankruptcy protection in April 2013 “to cleanse itself of legacy issues, including financial, legal and regulatory matters.”

At that time, the company filed a Reorganization Plan with the Court under which it would go into bankruptcy, be recapitalized by a “plan sponsor group” of investors, and emerge as profitable, debt-free business.

According to the Reorganization Plan, the company entered Chapter 11 with the intention of closing at least eight loss-making subsidiaries, while retaining four of its profitable subsidiaries: Ioko 365, Polymedia, KIT digital France and KIT digital Americas.  In its filings with the Court, Kit disclosed that the aggregate revenue generated in 2012 by these four remaining business was approximately $134.5 million.

With the new announcement, it appears the company’s Reorganization Plan has now been approved by the Bankruptcy Court.

Kit says that once it emerges from Chapter 11, it will change its name to “Piksel,” and re-brand in time for the IBC trade show in September 2013.

If the company can overcome the “legacy baggage” of Kit Digital, Piksel may turn out to be a formidable player in the broadcast industry once it is fully up and running later this year.

According to Court documents, Piksel will have more 800 employees and revenues in excess of $100m, making it one of the largest players in the industry broadcast industry, where the majority of its business comes from.  After emerging from Chapter 11, it’s also likely that the company will have little debt.

More importantly, Piksel will operate in an area where broadcasters and media companies are increasingly focusing their attention, the management and delivery of multi-screen video services.  Not only does the new company have core technical expertise in this area, it also boasts a large professional services organization capable of specifying and implementing complex multi-screen deployments, and a 24×7 network monitoring operation, which is offered as a service to clients who do not want to build their own multi-platform NOC.

It remains to be seen how well the company will fare once it comes out of Chapter 11, but Peter Heiland, who became interim CEO of Kit Digital in August 2012, provide a few clues in his upbeat statement about the company’s future. “Piksel is set to emerge as a healthy, dynamic company with a great mix of talented employees, market-leading customers, profitable assets, and sufficient liquidity for operations and investments,” he said.

Heiland went on to say that the new company will “leverage its solutions expertise; the flexibility of which will be driven by a suite of software applications, industry partnerships, and world-class professional and managed services.”  He also acknowledged the people who helped the company through what was presumably a traumatic period, saying “I would like to thank all of those who dedicated so much time and effort, including our employees and advisors, to helping us complete our restructuring.”

KIT digital will officially rebrand as Piksel on August 29, 2013.

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Related Content:

Press Release: KIT digital Restructuring Approved; Prepares to Exit Bankruptcy and Change Name to Piksel

Kit Digital Announces $6 Million Settlement of Securities Lawsuits

KIT Digital Files For Chapter 11 Bankruptcy, Plans to Re-Emerge as “Healthier, Focused Company” by IBC 2013

KIT Digital: Chapter 11 Plan of Reorganization

KIT Digital: Voluntary Petition for Chapter 11 & List of 30 Largest Unsecured Creditors

KIT Digital: Declaration of Fabrice Hamaide in Support of Debtor’s Chapter 11 Petition

KIT Digital Delisted by NASDAQ, Will Not Appeal

Activist Investor Heiland Becomes CEO at KIT Digital

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© Devoncroft Partners 2009 – 2013. All Rights Reserved.

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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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Brightcove Revenue Increases 32 Percent in Q3 2012

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Nov 01 2012

Online video publishing provider Brightcove announced that its revenue for the third quarter of 2012 was $22.1m, up 32% versus the same period a year ago.

Subscription revenue for the quarter was $21.5m (97% of total revenue), up 35% versus the same period a year ago. Professional services and other revenue was $600,000, down 25% from last year.

The GAAP net loss for the quarter was $600,000, or $0.02 per share, compared to a GAAP net loss of $5.4m, or $1.09 per share last year.  The non-GAAP net loss for the third quarter was $1.5m, or $0.05 per share, compared to a non-GAAP net loss of $2.9m, or $0.59 per share last year.

The GAAP operating loss for the third quarter was $3.7m, compared to an operating loss of $3.3m last year. The non-GAAP operating loss for the third quarter was $1.3m, compared to a non-GAAP operating loss of $2.2m last year.

GAAP gross margins were 68% for the third quarter, flat with last year. Non GAAP gross margins were 69%, up from 52% last year.

The company ended the quarter with cash, cash equivalents and investments of $30.8m, down from $58.6m at the end of the previous quarter. The decrease in cash was driven primarily by the $27.2m acquisition of Zencoder.  Free cash flow for the third quarter was $1.4m compared to negative $5.5m last year.

 

Brightcove chairman & CEO said he was pleased with the Q3 results and issued a bullish statement on the company’s future potential, saying “We believe that we are in the very early stages of a fundamental shift in how digital content is being delivered and consumed. We view this as a significant market opportunity, and Brightcove is focused on leveraging our first mover advantage into continued, long-term market leadership.”

 

Guidance:

Brightcove said it expects to post a Q4 2012 non-GAAP operating loss of $1.9m to $2.2m on revenue of $22.8m to $23.3m. The non-GAAP loss per share for Q4 2012 is expected to be $0.07 to $0.08.

For the full year 2012, the company expects to post a non-GAAP operating loss of $7.5m to $7.8m on revenue of $86.5m to $87m.  The full year non-GAAP  loss per share is expected to be $0.35 to $0.36.

The company cautioned that the finalization of the Zencoder acquisition could impact its non-GAAP results for the fourth quarter and full year 2012.

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Related Content:

Press Release: Brightcove Announces Financial Results for Third Quarter 2012 | Business Wire

Brightcove SEC Filing Details Zencoder Financials

Brightcove SEC 8K Filing: Zencoder Financials

Brightcove 8K Filing with SEC: Zencoder Inc Financial Statements Year Ended December 31, 2011 and the Period From January 8, 2010 (Inception) through December 31, 2010

Brightcove 8K Filing with SEC: Zencoder Inc. Unaudited Condensed Financial Statements For the Six Month Periods Ended June 30, 2012 and 2011

More Broadcast Vendor M&A: Brightcove Buys Zencoder for $30 Million in Latest Video Transcoding Deal

Press Release: Brightcove Announces New Services to Transform the Video Encoding Workflow | Brightcove

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© Devoncroft Partners. All Rights Reserved.

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More Broadcast Vendor M&A: Haivision Acquires KulaByte and MontiVision; Forms Internet Media Division

Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
Jul 21 2011

IP video distribution provider Haivision announced that it has acquired two companies –KulaByte Corporation of San Marcos, Texas, and MontiVision Imaging Technologies based in Germany.

Terms were not disclosed.

Haivision says that with the addition of KulaByte and MontiVision that it expects “to surpass revenues of $50 million next year.”

The technologies acquired in these transactions, which include encoding, transcoding, cloud computing, and workflow solutions, to form a new “Internet Media Division” within Haivision, which will be focused on developing technologies to deliver OTT media and to power enterprise social media networks.

Haivision named Chafye Nemri EVP of this new division and KulaByte’s CEO Peter Forman as Vice President of Internet Media,  responsible for developing the division’s cloud services.

KulaByte is a provider of live software-based encoding and transcoding technologies. Its cloud-based HyperStream product is designed to convert video sources into a variety of formats and data rates required to distribute live video via the Internet to multiple viewing platforms.

MontiVision, a partner in the creation development of KulaByte products, is a development company focused on delivering technologies for video acquisition, machine vision, surveillance, and medical imaging applications.

 

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Press Release: Haivision Acquires KulaByte and MontiVision; Forms Internet Media Division

 

 

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