Posts Tagged ‘quarterly results’

Strong Performance in Middle East Drives Vislink Broadcast Revenue 2.2 Percent Higher in 2013

Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
Mar 28 2014

UK-based Vislink plc, reported that its revenue for 2013 was $99.3m (£59.9m), up 4.7% versus 2012.

Broadcast industry revenue was $79.7m (£48.1m), up 2.2% versus 2012.

Vislink owns multiple broadcast brands including Advent, Link, MRC and Gigawave.  Earlier this month Vislink announced it had acquired playout automation provider Pebble Beach for $24.7m.

On a group basis (including both broadcast and government sectors):

  • 2013 operating profit of $7.1m (£4.3m), an increase of 40.3 per cent increase compared to 2012

 

  • Gross margins were 40.6% in 2013, up from 39.4% in 2012

 

  • Order intake for the year was $99.6m (£60.1m), and the company ended the year with an open order book of $9.3m (£5.6m), up 7.7% versus the end of 2012

 

Broadcast Performance

Vislink’s broadcast products include satellite terminals and wireless communication systems that are used live events such as news, sports, and entertainment.

2012 broadcast revenue was £48.1m, up 2.2% versus 2012. Broadcast revenue accounted for 80.3% of total group revenue, down from 82.3% of total group revenue in 2012.

Revenue from Pebble Beach is not included in these figures.

For the broadcast business, the company’s geographic performance was as follows:

 

Vislink - Broadcast Revenus 2013 vs 2012

 

On a percentage basis the company’s best performing region was the Middle East and Africa, where sales jumped 49% versus the previous year.

The UK market decline 19.3% in 2013 after a strong performance in 2012, driven in part by the London Olympics. The company had slight growth in the rest of Europe, and experienced a decline in APAC.

2013 broadcast revenue in the Americas was down 10.1% versus 2012.  Vislink attributed this decline to cyclicality, saying “the US broadcast marketplace typically sees a reduction in spend in a post presidential election year.”  At the same time however, the company specifically highlighted the importance of South America, saying that the 2014 World Cup and 2016 Olympics have provided “an impetus for further investment in both broadcast and surveillance.”

 

Acquisition of Pebble Beach

The company used its earnings announcement to highlight its recent $24.7m acquisition of playout automation provider Pebble Beach, saying it will “contribute to the strategy of achieving higher recurring services revenues and achieving our financial objectives of £80m revenue and £8m adjusted operating profit by the end of FY 2014.”

Vislink said the key benefits of Pebble Beach are leading software technology, recently developed next generation products, a growing customer base, and strong cash generation and growth prospects.

The company said the acquisition of Pebble Beach “fits perfectly with Vislink’s desire for growth, recurring revenues, extending its reach and providing customers with synergies, from capturing video to interactive programming, including acquisition and revenue generation. Vislink plans to grow its software capability around the Pebble Beach Systems and management team.”

 

 

Move to AIM Market Eases Burden of Future M&A

Following on from the recent acquisition of Pebble Beach, Vislink telegraphed its intention to do more M&A deals in the future, saying the company will “continue to seek growth opportunities both organically and through acquisitions, with a clear underlying objective of continuing to grow shareholder value.”

“We remain on track for our plan to grow the business to £80m, and £8.0m adjusted operating profit by the end of FY 2014, and we intend to support this by way of a number of “bolt on” acquisitions,” said Vislink chairman John Hawkins.

Significantly, during 2013 Vislink switched its stock market listing to the UK’s AIM exchange, the London Stock Exchange’s international market for smaller growing companies.  Vislink says that the move to the AIM exchange will “simplify and reduce the financial burden of making acquisitions.”

 

Strategy and Outlook:

The company said its “markets continue to be tough but as long as we continue to balance our revenues and maintain our product leadership, the group will grow profitably.”

Vislink said it plans to expand its capability in delivering recurring revenues by exploiting its “newly acquired software capability in video playout” (Pebble Beach), and will grow our services offering by developing our network capabilities in cellular and hybrid application areas.

Vislink finished the year with $6.1m (£3.7m) in cash, down from $13.4m (£8.1m) at the end of 2012.  The company said it has more than 250 employees worldwide.

 

 

Related Content:

Press Release: Vislink plc – Results for the year ended 31 December 2013

Broadcast Vendor M&A: Vislink Buys Pebble Beach for $24.7 Million

Broadcast Vendor M&A: Vislink Buys Amplifier Technology for up to $6.2 Million

Vislink Revenue Declines 7 Percent in Q3 2012, Reaffirms Plan to Double Revenue By End of 2014

More Broadcast Vendor M&A: Vislink Completes Acquisition of Gigawave for £3.75 Million

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Evertz Q3 FY 2014 Revenue Jumps 30 Percent on Big Deals in North America

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Mar 11 2014

Evertz announced that its revenue for the third quarter of its 2014 fiscal year was C$93.2m, up 30% versus the same period a year ago, and up 14.6% versus the previous quarter.

Net earnings for the quarter were C$21.3m (C$0.29 per share), up 61.3% versus the same quarter last year, and up 38% versus the previous quarter. The company generated C$24.4m cash from operations in the quarter, up from C$22m, last year, and C$9.7m last quarter.

The results (which were the second highest sales quarter in the history of the company), were well above the consensus estimates of equity analysts who were looking for revenue of $C80m and earnings of C$0.21 per share.

Evertz EVP Brian Campbell attributed the higher than expected results to improvements in the US/Canada market, the ongoing worldwide transition to HDTV, and strong customer demand for its new products.

Revenue in the US/Canada region was C$55m, up 63% versus the same period a year ago, and up 44.3% versus the previous quarter. US/Canada sales were 59% of total revenue during the quarter, up from 47% of revenue during the same period a year ago, and 47% of revenue last quarter.

International revenue was C$38.2m, essentially flat with last year, and down 11.4% versus the previous quarter. International sales were 41% of total revenue, down from 53% last year and last quarter.

The top ten customers in the quarter accounted for 38% of revenue (C$27.8m), and the largest customer in the quarter accounted for 12% of revenue (C$11.2m). Altogether Evertz had 78 orders in the quarter that were greater than C$200,000 (up from 57 last year, and 68 last quarter).

Unusually for Evertz, which is notoriously tight-lipped about corporate activity and customer wins, Cambell disclosed that the company had shipped a total of C$15m worth of product to two separate customers in the quarter, and specifically mentioned that these orders included the company’s new EXE routing switcher platform and Dreamcatcher video replay system.  Campbell declined to identify the customers by name, saying only that Dreamcatcher had been adopted by a “major sports league” and that the EXE platform had been adopted by “a major sports network.” However, an Evertz executive speaking on the “Professional Networked Media” panel at last month’s HPA Tech Retreat in Indian Wells, California, told the audience that the EXE-VSR router has been deployed by ESPN as part of its new D2 project.

Gross margins in the quarter were 57.6%, up from 56.1% last year and up from 57.4% last quarter. Evertz executives said that the gross margin performance in the quarter were within the company’s target range of 56% to 60%.  This prompted equity analysts on the earnings call to ask, for the second quarter in a row, why the company’s gross margins were not increasing more rapidly given the large percentage increases in quarterly sales.

Campbell attributed the gross margin performance to two factors. Because the company’s top-line growth in the quarter was driven by to big deals, “gross margins were lower than what you may anticipate from increased volumes, because of the large size of the orders, often-times those customers require a volume discount.”   Campbell also said gross margins in the quarter were affected by the order mix.

R&D expenses in the second quarter were C$15.05m, an increase of 15% versus the same period last year, and up 3% versus the previous quarter.  R&D expenses were approximately 16.1% of revenue in the quarter, lower on a percentage basis than last year (18.2%) and last quarter (18%) due to higher revenue.

Selling and administrative expenses for the quarter were C$14.9m, an increase of 9.2% versus last year, and an increase of 9.1% versus the previous quarter. Selling and administrative expenses represented approximately 16.1% of revenue in the quarter versus 18.2% of revenue during the same period last year, and 16.8% of revenue last quarter.

The company said that its shipments in February 2014 were C$25m, and that its purchase order backlog at the end of the third quarter of fiscal 2014 was in excess of C$43m, unchanged from last quarter.

Campbell said that the backlog remained the same despite higher revenue in the quarter because of a large order, which the customer asked to be expedited. Thus it was received and turned into sales during in one quarter, rather than showing up in backlog.

The company ended the quarter with $118.8m of cash and short term investments down from C$208.2 at the end of last quarter, a difference of C$89.4m.  The primary reason for this was the payment of dividends of C$115.8, including a special dividend of $C104m.

Evertz said it expects its annual revenues will continue to outpace the industry growth, and that its gross margin percentages may vary depending on the mix of products sold, the company’s success in winning more complete projects, utilization of manufacturing capacity and the competitiveness of the pricing environment. R&D will continue to be a key focus as the Company invests in new product development.

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Related Content:

Press Release: Evertz Technologies Third Quarter Fiscal 2014 Revenue Up 30%

Previous Year: Evertz Q3 FY 2013 Revenue Flat With Last Year, Down 14 Percent Versus Last Quarter

Evertz Revenue Declines 33 Percent in Q1 Fiscal 2014

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Dalet Revenue Grows 7 Percent in 2013 on Strong Sales of Newsroom Solutions

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 14 2014

Dalet, a provider of broadcast newsroom computer systems, asset management, and radio automation solutions, reported that its revenue for 2013 was 2012 revenue was €36.7m, an increase of 7% versus 2012.

Fourth quarter revenue was €12.3m, up 20% versus the same period a year ago.  The strong Q4 made the difference for Dalet, whose revenue had been flat for the first three quarters of 2013 when compared to the same period last year.

Goss margin for the full year 2013 were 87%, up from 86% in 2012, and up from 80% in 2011. The company attributed the margin expansion to a favorable sales mix during the year.

On a geographic basis:

  • Revenue in Europe was €17.6m in 2013, down 6% versus the full year 2012.  Nevertheless, Europe represented 48% of total revenue for the year.

 

  • Revenues grew 11% in the Americas to €12.8m, or 35% of total revenue for the year.

 

  • 2013 revenue from APAC and MEA grew 43% and 64%, respectively, and accounted for 9% and 7% of total revenue, respectively.

 

 

On a segment basis:

  • Asset management revenue was €13.6m, down 11.7% versus the previous year.  Asset management revenue represented 37.1% of total revenue in 2013, compared to 44.9% of total revenue in 2012

 

  • TV Newsroom systems was €12.9m, up 48.3% versus the previous year. TV newsroom systems represented 35.1% of total revenue, compared to 25.4% of total revenue in 2012

 

  • Sport solutions revenue was €3.8m, up 8.6% versus the previous year. Sports solutions revenue was 10% of total revenue in both 2013 and 2012

 

  • Radio solutions revenue was €5m, flat with 2012. Radio solutions represented 13.6% of total revenue, compared to 14.6% of total revenue in 2012

 

  • Integration revenue was €1.4m, down 26.3% versus the previous year.  Integration revenue represented 3.8% of total revenue, compared to 5.5% of total revenue in 2012

 

Dalet said its “financial position remains robust and the operating profit before non-recurring items for the year should be similar to the 2012 results,” but did not provide any further details.  The company had approximately €6m cash on hand at the end of 2012, but did not disclose its cash position at the end of 2013.  It also did not disclose its order backlog, which stood at €22m at the beginning of 2013.

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Related Content:

Press Release: Dalet Revenues 2013: €36.7 Million, +7%

Previous Year: Dalet Reports 10 Percent Revenue Growth in 2012 Thanks to Strong MAM Sales

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© Devoncroft Partners 2009-2014. All Rights Reserved.

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Evertz Revenue Declines 33 Percent in Q1 Fiscal 2014

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Sep 12 2013

Evertz announced that its revenue for the first quarter of its 2014 fiscal year was C$63.85m, down 33% versus the same period a year ago, and down 2% versus the previous quarter.

Net earnings for the quarter were C$11.8m (C$0.16 per share, or C$0.13 excluding For-x), down 52% versus the same quarter last year, and up C$3.7m or 12% versus the previous quarter.

The results were below the consensus expectations of equity analysts who were expecting revenue of C$67.9m and EPS of C$0.14. Analysts called the results “a hair light” but noted that the company’s backlog and shipments for August were very strong.

Revenue in the US/Canada region was C$35.9m, down 40% from C$59.4m last year, and up 8% from C$33.3m last quarter.

US/Canada sales were 56% of total revenue during the quarter, down from 62% % of revenue during the same period a year ago, and up from 41% of revenue last quarter.

The international region had revenues of C$27.9m or 44% of total revenue, down 24% from C$36.6m (38% of total), and up down 13% versus last quarter when international revenue was $31.1m or 49% of total revenue.

For the quarter ended July 31, 2013 gross margin was $36.7 million compared to $55.7 million in the same quarter last year. Gross margin percentage was approximately 57.5% compared to 58.0% in the same quarter last year.

Gross margins for the first quarter of FY 2014  were 57.5, down from 58% during the same period a year ago, and up from 56.7% last quarter.

R&D expenses in the quarter were C$13.5m, an increase of 14% versus the same period last year, and down 12% versus last quarter.   R&D expenses were approximately 21% of revenue in the quarter, versus 12% last year, and 23.5% last quarter.

Selling and administrative expenses for the quarter were C$11.6m, down 6% versus last year, and down 17% versus last quarter.   Selling and administrative expenses represented approximately 18% of revenue in the quarter versus 13% of revenue during the same period last year, and 21% of revenue last quarter.

Purchase order backlog at the end of August 2013 was in excess of $53 million and shipments during the month of August 2013 were $25 million.

The company’s purchase order backlog at the end of the first quarter of fiscal 2014 was in excess of C$53m, up sharply from C$35m, last quarter, and shipments during the month of August 2013 were C$25 million.

 

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Related Content:

Press Release: Evertz Technologies Reports Results for the First Quarter Ended July 31, 2013.

Evertz Announces 5 Percent Share Buy Back Program

Evertz Announces $9 Million Order From Unnamed International Customer

Previous Quarter:  Evertz Misses Expectations as Revenue Dip 14 Percent in Q4 FY 2013, Still Delivers Record Full-Year Performance

Previous Year: Evertz Beats Expectations in Q1 Fiscal 2013 as Profits Jump 41 Percent

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Vitec Group 1H 2013 Results: Videocom Revenue Down 5.1 Percent, Bexel Flat

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Sep 04 2013

The Vitec Group said that its total revenue for the first six months of 2013 was £157.6m, a decrease of 10.7% versus the first six months of 2012.

Vitec said that on an organic basis at constant currency, its revenue was down 9% versus the first half of 2012, and that after adjusting for the London Olympics and the disposal of the Staging business the underlying sales run rate was similar to the second half of 2012.

Despite the lower revenue, on an overall basis the company posted an increase in operating profit and profit before tax of 4.8% and 0.6% respectively.

 

Vitec Videocom Division

The company said broadcast-focused Videocomm division performed well in a challenging Broadcast & Video market.

Vitec’s broadcast-focused Videocomm division is made up of more than dozen brands that serve various parts of the broadcast industry: Anton/Bauer, Autoscript, Camera Corps, The Camera Store, Haigh-Farr, Litepanels, Microwave Service Company, Nucomm, OConnor, Petrol Bags, RF Central, Sachtler, Vinten and Vinten Radamec.

For the first six months of 2013 revenue from the Videocom division was £70.2m, down 5.1% versus the first six months of 2012, and down 3% versus the previous six month period (July to December 2012).

Videocomm order intake was only modestly behind prior year with sales reflecting the timing of shipments.

Videocom operating profit for the first half of 2013 was £8.7m, an increase of 3.6% versus last year.  The operating margin for the period was 12.4%, up from 11.4% last year.

The company attributed the increased operating margin to cost control measures and the initial benefit of restructuring activities, which it said was progressing well. Restructuring within the Videocom division includes the relocation of certain manufacturing activities to Costa Rica and the streamlining of broadcast and MAG operations in the United States.

The company highlighted the performance of several its brands, saying:

  • Our camera supports brands (Vinten, Sachtler and O’Connor) continued to trade well. We have grown our sales of robotic products following increased project activity in EMEA and Asia and our Sachtler range of supports continues to show good growth.

 

  • Our Litepanels LED lighting products benefited from growth in the Asian market. We are in the process of broadening the product range to enable us to maintain our leading position in the market.

 

  • Our Anton/Bauer mobile power products experienced a challenging video market but continued to make progress in supplying batteries and chargers to power medical carts in hospitals.

 

  • Camera Corps, acquired in April 2012, is trading in line with expectations although the lack of significant sporting events this year means that we expect a lower level of sales activity. This is in comparison to 2012 where the business benefited from the UEFA Euro 2012 football championships in the first half and the London Olympics in the second half of the year.

 

  • Our MAG sales grew during the first half benefiting from a $5.8 million US Department of Justice award for transmitters and receivers. We continue to bid for significant opportunities, whilst recognizing that the timing of major awards from US Government agencies is difficult to predict.

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Vitec Services Division (Bexel)

For the first half of 2012, revenue from Vitec’s Services Division, which primarily comes from Bexel, was £13.8m, essentially flat with the first six months of 2012.  On an organic and constant currency basis, Bexel revenue declined 3.5% versus the first six months of 2012.

The company said that these results were in line with expectations and that Bexel had made good progress on its strategy of working closely with key customers and supporting projects where the business can add most value.  As the result of this focus, as well as a rationalization of the business structure, the operating profit at Bexel doubled to £200,000 for the first six months of 2012. Bexel’s operating and margins were up by 70 bps to 1.4%.

 

“Vitec CEO Stephen Bird said that the company’s Videocom Division had” performed well in a challenging market and the Division’s MAG results benefited from a $5.8 million contract with the U.S. Department of Justice. The Imaging Division made good progress despite the continuation of the more challenging market that started to impact us in the second half of last year. The Imaging Division continues to grow its market share and this will be supported by new product launches planned for later this year.”

Bird said that Vitec is on target to deliver the significant cost reductions outlined in its 2012 full year results announcement, and that the company will supplement these savings with specific rationalization actions within our Imaging and Services Divisions I order to deliver further attractive returns.

“Our longer-term growth prospects continue to be positive and we are well positioned to benefit from any upturn in our markets,” said Bird. “Our order visibility remains limited but our first half year performance was consistent with our normal phasing and we are on track to meet our full year expectations.”

 

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Related Content:

Press Release: The Vitec Group plc Half Year Results to 30 June 2013

Vitec Group 1H 2013 Earnings Presentation

Broadcast Vendor M&A: Vitec Buys Teradeck for $15 Million

Vitec Group Says 2013 Trading In-line with Expectations, Videocom Markets Remain Challenging

Vitec Group 2012 Annual Report (published March 2013)

Previous Year: Vitec Group 1H 2012 Results: Videocom Revenue Up 12.3 Percent, Bexel Down 2.1 Percent

Vitec 2012 Results: Videocom Revenue Up 7.3 Percent, Bexel Doubles Operating Profit as Revenue Increases 4.4 Percent

Previous Interim Statement: Vitec Group Says Trading In-line with Expectations Despite Challenging Macroeconomic Environment

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ChyronHego CEO to Step Down at End of 2013

Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
Sep 04 2013

Michael Wellesley-Wesley, who has served as CEO of Chyron (now ChyronHego) for the past 10 years, will retire at the end of 2013, when his current employment agreement expires.  He will remain on the company’s board of directors.

Wellesley-Wesley will be replaced as CEO by current ChyronHego president Johan Apel, who was the chairman and CEO of Hego AB prior to Chyron’s merger with Hego earlier this year.

“The recent completion of the combination of Chyron and Hego unites two pioneering companies to create a global leader in broadcast graphics creation, playout and real-time data visualization,” said Wellesley-Wesley. “This is a truly transformative leap forward, and it presents an appropriate opportunity to define an orderly succession whereby the leadership responsibilities for the combined company transfer to Johan Apel. Johan is superbly well qualified to develop and execute the vision, the strategies and operating concepts for ChyronHego in ways that will allow us to simultaneously address the evolving needs of customers and the expectations of our shareholders.”

According to his most recent employment contract, Wellesley-Wesley receives a base salary of $482,850 per year, as well as incentive bonus.

Wellesley-Wesley is also eligible for bonus payments under Chyron’s 2013 Management Incentive Compensation Plan, which is triggered if the company achieves certain GAAP revenue and budgeted non-GAAP cash flow targets. According to this plan Wellesley-Wesley is eligible to receive up to 70% of his base salary, or $337,995, if both targets are met at the 100% level.  If these targets are exceeded, by 25% or more the payout will increase by an additional 50 percent.

In August 2013, the company disclosed that during the first half of fiscal 2013, excluding the results of operations for Hego, which was acquired on May 22, 2013, Chyron achieved 106% of the target first half of 2013 GAAP-basis revenues objective and achieved 366% of the target first half of 2013 non-GAAP cash flow objective.  As a result, Wellesley-Wesley “earned an incentive compensation award of $221,231, of which the company remitted payroll withholding taxes on his behalf of $91,191 and paid him the balance of $130,040 in company common stock, based on the August 6, 2013 closing market price of $1.59 per share, resulting in the issuance of 81,786 shares.”

At that same time, Chyron terminated the 2013 Management Incentive Compensation Plan, and published a new management incentive compensation plan for the second half of 2013.  This was done to include new executive officers and management and align the interests of all members of management, including certain members of management that became executive officers of the Company upon the consummation of the business combination with Hego during the second quarter of 2013.

The targets for the new plan are also based on “budgeted GAAP-basis revenues for the second half of the fiscal year ending December 31, 2013, and budgeted Non-GAAP cash flows from operating activities for the second half of the fiscal year ending December 31, 2013.

If both targets are achieved, Wellesley-Wesley is eligible for 70% of his base salary, or $168,998 (at 100% achievement of both performance conditions).

Chyron reported a net loss of $2.1m in the second quarter of 2013 on revenue of $10.7m, up 39% versus the same period a year ago, and up 34% versus the previous quarter.

The company’s net loss and operating loss in the second quarter of 2013 were both impacted by transaction costs associated with Chyron’s merger with Hego AB. The company says that when one-time costs,  including Hego merger-related expenses, restructuring costs and a valuation adjustment for contingent consideration related to the Hego merger in second quarter results, it posted net income of $800,000, and an operating profit of $900,000.

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Related Content:

Press Release: Press Release: ChyronHego CEO Michael Wellesley-Wesley to Retire Effective December 31, 2013; Board Selects Johan Apel as Successor

Michael Wellesley-Wesley Employment Agreement with Chyron Corporation

Chyron Corporation: 2013 Management Incentive Compensation Plan

ChyronHego Corporation Second Half of 2013 Management Incentive Compensation Plan

ChyronHego Avoids NASDAQ Delisting as Shareholder Equity Rises After Merger

Hego Merger Drives 39 Percent Revenue Increase for Chyron in Q2 2013

Chyron – Hego Stock Purchase Agreement

More Broadcast Vendor M&A: Chyron to Acquire Hego Group in All-Stock Deal

Michael Wellesley-Wesley Change in Control Agreement – May 23 2013

Michael Wellesley-Wesley Change in Control Agreement – November 19, 2012

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© Devoncroft Partners 2009 – 2013. All Rights Reserved.

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Autodesk Media & Entertainment Revenue Declines 11 Percent in Q2 FY 2014

Broadcast technology vendor financials | Posted by Joe Zaller
Aug 22 2013

Autodesk reported that its Q2 FY 2014 revenue from its Media and Entertainment (M&E) segment was $43m, a decline of 11% versus the same period a year ago, and down 9% compared to the previous quarter.

M&E gross margins for the second quarter of fiscal 2014 were $34m (79%), down from 80% for the same period a year ago, and flat compared to the previous quarter.

Autodesk’s M&E revenue has been in decline for the past several quarters — something the company has said for the past year that it expects to continue as it incorporates greater functionality into its design suites.

The company also plans to introduce new revenue models for M&E customers, including cloud-based rental.

 

Business Outlook

Autodesk says it now expects its revenue in the third quarter of fiscal 2014 to be in the range of $540m – $555m, and adjusted earnings in the range of $0.36 to $0.40 cents per share.

According to Reuters, analysts on average were expecting earnings of 50 cents per share on revenue of $580.9 million.  The disappointing results sent the company’s shares down as much as 5.6% in after-hours trading.

Autodesk is not providing full year fiscal 2014 guidance at this time.

“The challenging dynamics within some of the end-markets that we serve has led us to adjust our growth assumptions,” said Mark Hawkins, Autodesk executive vice president and CFO. “While the near-term revenue target is lower, we remain diligent about managing our spend while making essential investments to drive growth. With the recent introduction of more flexible license and service offerings that have ratable revenue streams, such as cloud-based and rental license offerings, Autodesk’s business model is evolving. We are currently refining our plans around the pace and time frame for this business model transition. As we evolve our business model, we remain committed to long-term operating margin expansion.”

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Related Content:

Press Release: Autodesk Reports Second Quarter FY 2014 Results

Reuters: Autodesk forecasts disappointing third-quarter, shares fall

Previous Quarter: Autodesk Media & Entertainment Revenue Drops 8% in Q1 FY 2014, Readies Cloud-Based Launch

Previous Year: Autodesk Says Media & Entertainment Revenue Fell 10 Percent in Q2 FY 2013, Will Restructure Overall Business Strategy

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Evertz Announces 5 Percent Share Buy Back Program

Broadcast technology vendor financials | Posted by Joe Zaller
Aug 21 2013

Evertz said its board of directors has authorized the implementation of a share buyback program under which it will buy back up to 3,700,397 of its common shares, or approximately 5% of its outstanding shares as of August 18, 2013.

The company says it will buy shares at their market price at the time of purchase, and that no director, senior officer or other insider of Evertz currently intends to sell any common shares under this bid.  All shares repurchased via this program will be cancelled.

The program will continue for one year after the first share purchase, or once Evertz has completed the announced share purchases.

In a statement, Evertz said that it believes that “its common shares currently trade in a price range that does not adequately reflect their underlying value based on Evertz business and strong financial position. As a result, depending upon future price movements and other factors, Evertz believes that its outstanding common shares represent an attractive investment and a desirable use of a portion of its corporate funds.”

The new share buyback program supersedes a previous scheme that expired on July 16, 2013.

Evertz posted net earnings of C$65.2m (C$0.88 per share), on revenue of C$316 for its full 2013 fiscal (which ended April 30, 2013).

During fiscal 2013 Evertz repurchased C$4.2m of its capital stock, and issued capital stock pursuant to an option program valued at C$8m.

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Related Content:

Press Release: Evertz Technologies Limited Announces Proposed New Normal Course Issuer Bid

Evertz Announces $9 Million Order From Unnamed International Customer

Evertz Misses Expectations as Revenue Dip 14 Percent in Q4 FY 2013, Still Delivers Record Full-Year Performance

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© Devoncroft Partners 2009 – 2013. All Rights Reserved.

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Orad Revenue Declines 29% in Q2 2013, Announces 10% Workforce Reduction

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Aug 20 2013

Graphics and media asset management (MAM) provider Orad reported that its revenue for the second quarter of 2013 was $7.2m, down 29% versus the same period a year ago, and up 1% versus the previous quarter.

 “The lower level of activity which started in Q3 2012, mostly due to the economic situation in Europe, continued through the second quarter of 2013, as reflected in the disappointing results for the second quarter and also for the first half of the year,” said Orad CEO Avi Sharir.

Orad has been struggling since the third quarter of last year, particularly in Europe, which is the company’s largest market. In February 2013, the Orad issued a profit warning for the full year 2012, saying at that time that it expected its profit to fall by about 34 percent.

The company’s results in Q2 2013 show that the company continues to struggle in the European market. However, the company also reported a bright spot in an otherwise disappointing quarter, saying that its order intake increased during the quarter. “We are happy to announce that during Q2 2013 we booked the highest volume of orders ever in Orad’s history, setting a new record,” said Sharir.

Orad’s product revenue in the quarter was $5.6m (78% of total revenue), down 33% versus the same period last year, and up 7% versus the previous quarter.  Service revenue in the quarter was $1.6m, down 11% versus last year, and down 14% versus the previous quarter.

The net loss for the second quarter of 2013 was $1.3m, or -$0.11 per share, compared to a net profit of $732,000 or $0.06per share last year, and a net loss of $944,000, or $0.08 per share last quarter. 

Including additional charges in the quarter, the total comprehensive loss for the second quarter of 2013 was $1.375m, compared to total comprehensive income of $507,000 last year, and a total comprehensive loss of $1m last quarter.

Gross margins for the quarter were 63% versus 69% last year, and 65% last quarter.

The operating loss for the quarter was $1.46m, compared to an operating profit of $1m last year, and and operating loss of $657,000 last quarter.

Operating expenses for the quarter were $6m (83% of total revenue), down slightly from last year, and up 14% versus the previous quarter.

R&D costs for the second quarter of 2013 were $1.45m, up 5% versus the same period last year, and down 5% compared to last quarter.  R&D costs were 20% of total revenue in the quarter, compared to 14% of total revenue last year, and 21% of total revenue last quarter.

Sales and marketing expenses in the quarter were $3.7m, down 2% versus the same period last year, and up 29% compared to last quarter.  Sales and marketing costs accounted for 51% of total revenue in the quarter, compared to 37% of total revenue last year, and 40% of total revenue last quarter.

Following the company’s sharp rise in sales and marketing costs this quarter, Sharir says that Orad will continue to spend in this area.  “We also continue to invest in our sales and marketing infrastructure and in particular have put emphasis on strengthening our North America office with the addition of a few senior people,” he said.

General and administrative expenses in the quarter were $853,000, down 4% versus the same period last year, and down 4% compared to last quarter.  G&A costs accounted for 12% of total revenue in the quarter, compared to 9% of total revenue last year, and 12% of total revenue last quarter.

The company ended the quarter with $5.6m in cash equivalents and restricted cash, compared to $9.6m last year, and $7.2m last quarter.

 

Announcement of 10 Percent Workforce Reduction

Although the company says it had strong order intake during the second quarter of 2013, Sharir says it’s “too early to tell if we reached a turning point in the level of activity, but it is certainly a very encouraging sign.”

“As a measure of caution, we have decided to align our operating expenses with our current financial results, and have decided to reorganize some departments, reducing our overall headcount by 10% and trim other operational costs as well. The result of these measures will be seen in the lower cost of operating expenses expected as of the fourth quarter of 2013. The decrease in our operational expenses will not affect our continuous focus on strategic initiatives.”

 

First Half 2013 Results

For the first six months of 2013, Orad’s revenue was $14.4m, down 24.7% versus the first half of 2012.

The net loss for the first six months of 2013 was $2.2m, compared to net income of $1.7m for the first half of 2012.

Gross Margins for the first half of 2013 were 64%, down from 69% for the first six months of 2012.

The operating loss for the first six months of 2013 was $2.1m compared to operating income of $1.8m for the first six months of 2012.

Operating expenses in the first six months of 2013 were $11.3m, or 78% of total revenue, down 1% versus last year when total operating expenses accounted for 60% of overall revenue.

R&D expenses for the first half of 2013 was $3m, or 20% of total revenue, up 9% versus the same period a year ago when R&D accounted for 15% of revenue,

Sales & marketing expenses for the first six months of 2013 $6.6m, or 45% of total revenue, down 3% % versus the first half of 2012 when sales and marketing accounted for 45% of revenue.

General and administrative expenses for the first six months of 2013 were $1.7m, or 12% of total revenue, down 9% versus the first half of 2012 when G&A expenses were or 10% of total revenue.

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Related Content:

Press Release: Orad Results for the second quarter and for six months of 2013

Previous Year: Revenue Up, Profit Down at Orad in Q2 2012

Previous Quarter: Orad: Results for the First Quarter

Orad Warns of Lower Revenue, Net Loss in Q4 2012 of 2013

 

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© Devoncroft Partners. All Rights Reserved.

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DTS Posts Q2 2013 Loss, Lowers Full Year Outlook

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Aug 19 2013

Audio processing specialist DTS announced that its revenue for the first quarter of 2013 was $27.2m, an increase of 25% versus the same period a year ago, and a decline of 17% versus the previous quarter.

The company said its network-connected business, which includes connected TVs, PCs and mobile devices, doubled versus last year.  However, the company saw revenue decline 19% versus last year in its Home AV business, and decline 10% in its Blu-Ray business.

Network connected revenue accounted for about 50% of total sales in the quarter. Blu-Ray and home AV represented just under 20% and just under 15% of total revenue respectively.

Broadcast revenue in the quarter was up slightly, while automotive remained relatively flat on a year-over-year basis. Broadcast and automotive represented less than 5% and 15%, respectively, of total revenue for the second quarter.

The GAAP net loss for the first quarter of 2013 was $2m, or $0.11 per share, compared to a GAAP net loss of $775,000, or $0.05 per share, in the second quarter of 2012, and a GAAP net loss of $1.5m, or $0.08 per share last quarter.

Non-GAAP net income in the quarter was $2.1m, or $0.11 per share, compared to non-GAAP net income of $3.5m, or $0.21 per share, last year, and non-GAAP net income of $4m, or $0.22 per share last quarter.

Operating expenses for the quarter were $26.6m, or 98% of total revenue.  This is an increase of 24% versus the previous year.

SG&A expenses for the quarter were $18,75m, up 12% versus the previous year. Research and development costs in the quarter were $7.8m, up 64% versus last year.

The non-GAAP operating margin in the second quarter of 2013 were 21%, down from 38% in the first quarter of 2012.

The non-GAAP operating margin in the second quarter of 2013 was 13%, down from 26% last year, and down from 21% last quarter.

The Company closed the quarter with cash and investments totaling $76.7m, flat with last quarter.

“DTS delivered attractive revenue growth in the second quarter in line with our expectations,” said DTS chairman and CEO Jon Kirchner. “The growth was driven by strong performance in our network-connected business. Our strategy remains squarely focused on the large network-connected opportunity, and as expected, this segment of our business contributed nearly half of total revenue during the quarter. As we enter the important autumn and holiday season, we are closely monitoring CE market headwinds and the timing of certain customer network-connected product rollouts. Importantly, we are very encouraged by the growing interest in our new Headphone:X and Play-Fi technologies and expect those products to see increasing design wins as we get into 2014. With growing content support and increasing device penetration, we are pleased with our strategic progress and remain focused on execution in the coming quarters.”

 

Business Outlook

The company lowered its forward guidance due to “uncertainties around the timing of certain mobile and Play-Fi product shipments, which are now expected to push into 2014; and a modestly weakening near-term CE business environment, which has impacted the Company’s expectations for home theater in a box systems, Blu-ray players and automotive unit volumes; and lower expected royalty recoveries.”

The Company now expects 2013 revenue in the range of $130 to $136 million, down from previously issued guidance of $140 to $146 million.

Management says it will offset any revenue weakness through active cost management, and therefore says its GAAP EPS expectations are unchanged.  On a GAAP basis, DTS continues to expect an operating margin of approximately 3% to 6% and expects EPS in the range of $(0.05) to $0.00 per diluted share.

Non-GAAP earnings for the year are now expected to be in the range of $0.98 to $1.12 per diluted share, down from previously issued guidance of non-GAAP EPS in the range of $1.05 to $1.20 per diluted share.

Stock-based compensation expense is now expected to be in the range of $0.38 to $0.41 per diluted share, down from previously issued guidance of $0.44 to $0.47 per diluted share.

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Related Content:

Press Release: DTS Reports Second Quarter 2013 Financial Results

Previous Quarter: DTS Q1 2013 Revenue Rises 22 Percent

Previous Year: DTS Posts Loss in Q2 2012 Due to Weak Consumer Demand for Blu-Ray

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