Posts Tagged ‘RealD’

RealD Swings to a Loss in Q2 FY 2013

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Oct 29 2012

RealD said that its revenue for the second quarter of its 2013 fiscal year was $55m, down 38% versus the same period a year ago.

Licensing revenue in the quarter was $35m, down 33% versus last year. International markets generated 61% of license revenue, compared to 56% of license revenue in the second quarter of fiscal 2012.

Product and other revenue was $20m, down 44% versus last year. International markets generated 44% of product and other revenue, compared to 41% of product and other revenue in the second quarter of fiscal 2012.

The GAAP net for the quarter was $4.2m, or $0.08 per share, compared to GAAP net income of $18.9m, or $0.33 per diluted share, last year.

Although the company’s revenue in the quarter was higher than the consensus estimate of $47m, RealD missed on the bottom line expectation of a loss of $0.04 per share.

Adjusted EBITDA, a non-GAAP metric, was $13.8m for the quarter, down 69% versus the same period a year ago.

As of September 21, 2012, the company had deployed approximately 21,500 RealD-enabled screens, an increase of 15% compared to last year, and an increase of 800 screens, or 4%, compared to the previous quarter.

As of September 21, 2012, the company had approximately 12,300 domestic screens at approximately 2,700 domestic theater locations and approximately 9,200 international screens at approximately 2,600 international theater locations.

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Related Content:

Press Release: RealD Inc. Reports Financial Results for Second Quarter of Fiscal 2013

RealD Q2 2013 Earnings Call Transcript

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© Devoncroft Partners. All Rights Reserved.

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Recent Regulatory Filings From Broadcast & Digital Media Technology Vendors

broadcast industry technology trends, Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Mar 06 2012

This is the time of year when public companies file a variety of documents with securities regulators.

If you really want to understand what’s going on at these businesses, it’s worth spending the time to review these filings.

Here’s a sampling of recently filed documents from broadcast and digital media technology vendors, in alphabetical order by company.

 

Avid 2011 10-K Filing

Avid 8-K Filing Details Executive Bonus Plan

Belden 2011 10-K Filing

Digital Generation (DG Fastchannel) 2011 10-K Filing

DTS Audio 2011 10-K Filing

Harmonic 2011 10-K Filing

Harmonic 8-K Filing – Details Executive Salary and Bonus Plan

Miranda Q4 and Full Year 2011 MD&A (Management Discussion and Analysis)

RealD 10-Q Filing

Rovi 2011 10-K Filing

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© Devoncroft Partners. All Rights Reserved.

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RealD Delivers Strong Results in Q2, But Loss of Samsung Deal Crushes Stock

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Nov 03 2011

3D technology provider RealD reported that its net revenue for its second quarter of its 2012 fiscal year was $88m, up 35% from the same period a year ago.

Licensing revenue in the quarter was $52m, up 119% from last year.  License revenue increased to 59% of gross revenue during the quarter from 46% of gross revenue in the second quarter of fiscal 2011. 56% of licensing revenue in the quarter came from international markets, compared to 52% last year.

Product revenue for the quarter was $36m, a decline of 13% versus last year.  Product revenue decreased to 41% of gross revenue during the quarter from 54% of gross revenue in the second quarter of fiscal 2011. The company attributed the lower product revenue to an increasing number of international consumers returning to the cinema with RealD eyewear purchased at a previous RealD showing.

GAAP net income for the quarter was $18.9m versus a GAAP net loss of $5.1m last year.  Gross margins for the quarter were 48%, up from 21% last year.

On a non-GAP basis, the company’s “adjusted EBITDA” in the quarter was $44.4m, an increase of 169% versus last year.

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Loss of Samsung Deal

As part of the earnings announcement, RealD also disclosed that consumer electronics giant Samsung has decided not to proceed with a previous plan to build TVs using the RealD’s technology.

The company said in a statement: “ RealD today is announcing revised expectations for its license agreement with Samsung Electronics LCD Business. In May 2011, RealD and Samsung announced that panels featuring RealD 3D display technology were expected to be made available to consumer electronics manufacturers by early 2012. RealD has recently learned that Samsung’s initiative to manufacture panels under the RealD license agreement is not being pursued at this time. As a result, RealD is now pursuing other potential partners for its 3D display technology among consumer electronics panel manufacturers.”  This news sent the company’s shares down sharply on the day following the release of this news.

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RealD Screen Deployments

The company said that at the end of the quarter it had deployed approximately 18,700 RealD-enabled screens, an increase of 101% versus the same period a year ago, and an increase of 7% versus the previous quarter.  Of these deployments 59% are in the United States, with the remaining 41% in international locations.

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Related Content:

Press Release: RealD Inc. Reports Financial Results for Second Quarter of Fiscal 2012

Previous Quarter: RealD Inc. Reports Financial Results for First Quarter of Fiscal 2012

Previous Year: RealD Q2 2010: Revenue up 69%, Deployments up 24%, Losses Remain

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RealD Q1 2011 Revenue Declines 8%, Sinking Stock

broadcast technology market research, Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Aug 01 2011

3D technology licensing leader RealD announced that its revenue for its first quarter  of fiscal 2012 ended June 24, 2011 was $59.6m, a decrease of 8% versus the same  period a year ago, and up slightly versus the previous  quarter.

Licensing revenue in the quarter was $35.7m, an increase of  39% from the first quarter of fiscal 2011, and up 8% versus the previous quarter. Licensing revenue represented 60% of total revenue in the quarter.  International markets generated 58% of net license  revenue in the first quarter of fiscal 2012 compared to 35% of net license revenue in the first quarter of fiscal 2011.

Product revenue for the quarter was $23.9m, down 39% from the same period a year ago, and down 6% versus the previous quarter. The company attributed the decline in product revenue to “an increasing number of international consumers returning to the cinema with RealD eyewear purchased at  a previous RealD 3D showing.”

GAAP net income in the quarter was $9.6m, an increase of 226% versus the same period a year ago.

Gross margin increased to 59% from 28% in the first quarter of fiscal 2011 and reflects the higher mix of net license revenue and improved product and other gross profit referenced above.

Investors were unimpressed with the results.  RealD’s shares have dropped 22% since the company released its Q1 2011 earnings, and are now trading below the company’s IPO price.

 

3D Screen Deployments:

As of June 24, 2011, the company has deployed approximately 17,500 RealD-enabled screens, an increase of 133% from approximately 7,500 screens at June 25, 2010, and an increase of 2,500 screens, or 17%, from approximately 15,000 screens at March 25, 2011.  Domestic screens (U.S. and Canada) were approximately 10,300 and international screens were approximately 7,200 at June 24, 2011.

 

Related Content:

Press Release: RealD Inc. Reports Financial Results for First Quarter of Fiscal 2012

Barron’s Article: Harsh Reality Hits RealD

Bloomberg: RealD Slides Below IPO Price After First-Quarter Revenue Misses Estimates

Press Release: RealD Inc. Reports Financial Results for Fourth Quarter and Fiscal Year 2011

Bloomberg: RealD Slumps Most Since IPO as Analysts Question Appeal of 3-D Movies

RealD President Bows Out, Cashes In

Press Release: RealD Co-Founder Joshua Greer to Transition into Advisory Role and Remain on Board of Directors

RealD SEC filing detailing separation agreement between RealD and Joshua Greer

 

 

RealD Posts Profit in Q4, Analysts Question of Appeal of 3D Movies

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Jun 13 2011

RealD, which licenses 3D technologies, announced that its revenue for the fourth quarter of its fiscal year was $58.5m, an increase of 6% versus the same period a year ago. The company posted GAAP net income of $4.5m in the quarter, versus a GAAP loss of $20.9m during the same period a year ago.

For the full fiscal year, the company had revenue of $246.1m, an increase of 64% versus the previous year.  Net loss for the year was $12.3m, versus a loss of $51.2m the previous year.

Despite RealD’s increasing revenue and profitability, investors sold off the stock on fears that 3D may not have the market traction that had been anticipated previously.  According to a Bloomberg article, shares in RealD fell the most since its initial public offering after analysts questioned executives about the appeal of the 3D format.

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Related Content:

Press Release: RealD Inc. Reports Financial Results for Fourth Quarter and Fiscal Year 2011

Bloomberg Article: RealD Slumps Most Since IPO as Analysts Question Appeal of 3-D Movies

RealD President Bows Out, Cashes In

RealD SEC filing detailing separation agreement between RealD and Joshua Greer

RealD Files Prospectus for $200m Secondary Stock Offering. All Proceeds Destined for Current Shareholders Rather than the Company Itself

Wall Street Journal Article: RealD Insiders Capitalize on IPO

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RealD President Bows Out, Cashes In

Uncategorized | Posted by Joe Zaller
Jun 01 2011

RealD, a global licensor of 3D technologies announced that company co-founder Joshua Greer will no longer serve as President of the Company effective July 15, 2011.

According to a filing with the Securities and Exchange Commission, Greer, who made tens of millions of dollars through RealD’s IPO and subsequent share sales, has entered into a consulting agreement with RealD that will pay him $275,000 to act as a strategic and technology advisor to the company.  He will also remain on the company’s board of directors.

 

Greer will also receive the following separation benefits:

 

  • cash severance of $450,000 (Greer’s annual base salary according to RealD’s S1 filing)

 

  • reimbursement from the Company for insurance coverage under COBRA for 18 months

 

  • a pro-rated cash Performance Bonus for fiscal year 2012 (to be paid no later than June 15, 2012), in an amount equal to 30% of 80% of Mr. Greer’s salary, computed assuming that Mr. Greer had remained as President of the Company through the end of fiscal year 2012; and

 

  • acceleration of a time-based vesting stock option for 105,000 shares granted to Mr. Greer on July 15, 2010

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Related Content:

Press Release: RealD Co-Founder Joshua Greer to Transition into Advisory Role and Remain on Board of Directors

RealD SEC filing detailing separation agreement between RealD and Joshua Greer

RealD Files Prospectus for $200m Secondary Stock Offering. All Proceeds Destined for Current Shareholders Rather than the Company Itself

Wall Street Journal Article: RealD Insiders Capitalize on IPO

RealD S1 (filing with SEC)

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RealD Losses Widen to $16.6m as Q3 Revenue Jumps 91%

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 03 2011

RealD, a global licensor of 3D technologies, announced that its revenue for the third quarter of its fiscal year was $57.8m, an increase of 91% versus the same period a year ago, but down 11% from the previous quarter.

The company posted a net loss $16.6m during the quarter on a GAAP basis, compared to a GAAP net loss of $15.1m during the same period a year ago, and a GAAP net loss of $5.1m during the previous quarter.  However, the company said that on a non-GAAP basis, it achieved adjusted EBITDA of $16.9 million, an increase of 213% versus the same period a year ago, and up slightly from the adjusted EBITDA of $16.5m posted last quarter.

Along with the jump in revenue, RealD’s costs increased significantly during the quarter.  The company’s cost of revenue increased 63% to $51.6m, and its operating expenses more than doubled to $20.8m.

RealD continues to post impressive expansion numbers. During the quarter it deployed approximately 2,000 3D-enabled screens, bringing its total 3-D screen deployment to 11,300.  On a geographic basis, the company said it has deployed 6,900 domestic (United States and Canada) screens and 4,400 international screens. 

These updated screen deployment numbers represent an increase of 163% versus last year, and an increase of 22% versus the previous quarter.

Year to date, the company’s net revenue was $187.6 million, an increase of 99% versus the first nine months of the last fiscal year.   The company’s years to date operating expenses were $51.2m, an increase of 81% versus the first nine months of last year.

On a GAAP basis, RealD lost $16.8m during the first nine months of its fiscal year.  However the company said that on a non-GAAP basis (which excludes the impact of motion picture exhibitor option expense) it achieved net income of $17.3m, compared to a non-GAAP net loss $12.4m for the first nine months of its last fiscal year.  The company also said that its adjusted EBITDA (a non-GAAP measure) was $44.4m, compared to $11.5m for the first nine months of last year.

RealD said it ended the quarter with cash and cash equivalents of $35.5m.  During the quarter the company successfully completed a $200m secondary stock offering, but all proceeds went to company investors and insiders rather than the company itself. 

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You can read the full RealD Q3 earnings release here.

You can read information on RealD’s previous quarter (Q2) results here.

Information on the company’s $200m secondary stock offering is here.

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RealD Files Prospectus for $200m Secondary Stock Offering. All Proceeds Destined for Current Shareholders Rather than the Company Itself.

broadcast technology market research | Posted by Joe Zaller
Nov 29 2010

RealD, a global licensor of 3D technologies, last week filed a prospectus with the Securities and Exchange Commission to sell 7,815,001 shares of its common stock, along with an additional 1,172,250 shares as an over-allotment.  Based on today’s stock price of around $26.50, this translates to about $207m (about $238m is the overallotment shares are also sold).  

It’s always interesting to read this kind of document because it offers information about the company’s financial performance and business strategy.  RealD’s prospectus is also interesting because it provides useful data about the take-up of 3D, which is something that many in the broadcast industry are working to understand.

What’s also interesting about this deal is that apparently none of the money from the offering will go to RealD.  Instead, it will all go to current stockholders, including directors and executives.

According to the prospectus filed with the SEC “The selling stockholders, including certain members of our board of directors and management, will receive all of the proceeds from this offering, and we [the company] will not receive any proceeds from the sale of shares in this offering.”

The largest beneficiary will be Shamrock Capital Advisors, whose “Capital Growth Fund II” is selling almost 5.4 million shares of RealD, or 99.9% of its holdings in the company, as part of the offering.   

Other company insiders will benefit as well.  For example, both company chairman and CEO Michael Lewis and company president Joshua Greer are selling 10% of their holdings in the company.  Lewis and Greer stand to gain about $17m each from the offering, and almost $30m each if all the shares allocated for overallotment are sold. Company CFO Andrew Skarupa is also selling 10% of his current holdings in the company for about $2.2m.  Skarupa will make about $3.8m if all the shares allocated for overallotment are sold.

Several others affiliated with the company are also using the offering to sell “restricted stock unit awards that are exercisable within 60 days of September 24, 2010.”

It’s interesting to see so many RealD insiders selling their shares on the heels of their IPO, which was just over four months ago.  Especially when you consider a Wall Street Journal article published at that time, which said that “company insiders and investors at RealD raised more money in the company’s recent initial public offering than the company did.”

Lewis and Greer each received $17.1m in July of this year when they both sold 1.15 million shares in the company’s IPO.  Skarupa made about $2.2m from the company’s IPO.  Shamrock, who recently bought Screenvision from Technicolor and ITV, made about $34.4m when it sold 2.3 million RealD shares during the company’s IPO.

The chart below shows a breakdown of how many shares are being sold by each shareholder, along with the amount they stand to receive for these shares for both the initial and overallotment offerings.  Please note that this chart assumes a share price of $26.50 per share (the price at the time of writing).

Sellers of RealD shares (values based on a share price of $26.50.  Source RealD Form S-1 filed with SEC on 11/22/2010

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You can read the full RealD share offering prospectus here.

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RealD Q2: Revenue up 69%, Deployments up 24%, Losses Remain

broadcast industry technology trends, Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Nov 02 2010

3D technology provider RealD announced today that its net revenue for its second quarter as a public company was $65.3m, an increase of 69% versus the second quarter of last year.

The company recorded a GAAP net loss of $5.1m during the quarter, versus a GAAP loss of $5.4m during the same period a year ago.  However, the company said that its adjusted EBITDA (a non-GAAP measure) for the quarter was $16.5 million, compared to $3.9 million for the second quarter of fiscal 2010, an increase of 327%.

Revenue from product during the quarter accounted for 64% of revenue, with licensing revenue making up the additional 36%.  Product revenue increased 81.6% versus last year, while licensing revenue was up 51.8% versus the same quarter a year ago.  On the company’s conference call management pointed out that there were 8 films during the quarter that each provided at least $1m in licensing revenue, versus four such film a year ago.

The company said that at the end of the quarter it had deployed approximately 9,300 RealD enabled screens, an increase of 182% versus a year ago, and an increase of 24% versus the end of the previous quarter.  60% of the company’s deployments to date are in the United States and Canada, but international licensing revenue was greater than domestic revenue during the quarter.   The company said that it expects to deploy a further 1,800 – 2,200 screens during the third quarter of this fiscal year.

For first half of its fiscal year, the company reported net revenue of $129.8m, an increase of 102% versus the six months ended September 25, 2009.  Product and licensing revenue during the first six months of the year grew by 89% and 127% respectively, versus the same period a year ago.

GAAP net loss attributable to common stockholders for the six months ended September 24, 2010, was $169,000 compared to a GAAP net loss attributable to common stockholders of $15.3m for the six months ended September 25, 2009.

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You can read the full RealD Q2 earnings press release here.

The company’s earnings release from the previous quarter can be found here.

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Devoncroft Digest – August 15, 2010 – Earnings Galore, Broadcast Industry M&A Continues

broadcast industry trends, broadcast technology market research, Broadcast technology vendor financials, Devoncroft Digest, market research | Posted by Joe Zaller
Aug 15 2010

The Devoncroft Digest is a semi-regular amalgamation of news items I’ve seen recently that I think might be interesting / important for readers and clients. 

Due to my travel schedule it’s been two weeks since the last digest post.  Here are a few of the things that have caught my eye during this time.

Earnings Season Continues

We are now in the heart of earnings season, and a large number of tech vendors, platform operators, service providers and broadcasters.  For the most part these results have been generally positive, with many companies saying that they are seeing the green shoots of recovery taking hold. 

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Broadcast Technology Vendor Earnings

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Vizrt Q2 Revenue Rises 17%, CEO Says Market is Improving

Broadcast graphics and asset management provider Vizrt announced its Q2 and 1H results. Revenue for the quarter was up 17% y/y, driven by strong growth in the Americas, which was up 48% y/y.

Gross margins for the quarter were 65%, well ahead of the 58% that the company achieved during the same period a year ago. Broadcast graphics accounted for 72% of the company’s total revenues in 1H 2010.  According to the company, Vizrt’s graphics business is up 33% y/y.

Full details here.

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Chyron Q2 Losses Narrow as Revenue Jumps 20% 

Broadcast graphics provider Chyron announced its financial results for Q2 and 1H 2010.

Q2 revenue was $6.94m, up 20% versus Q2 2009.  Gross margins for the quarter were 70%, up slightly from the previous year.  Q2 product revenue was $5.4m, up 18% y/y.  Service revenue increased 29% y/y to $1.19m.  Service revenue accounted for 22% of the quarter’s total revenue. The company posted an operating loss for the quarter of $680,000, a 52% y/y improvement; and a net loss of $710,000, 35% better than a year ago.

Full Details Here

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Miranda Q2 Revenue Up 3% y/y, +11% q/q. CEO Says Market Conditions Improving

Broadcast infrastructure provider Miranda Technologies announced their Q2 2010 results.  Revenue for the quarter was C$32.1m, up 3% from the same period a year ago and up 11% versus the previous quarter.  International sales were up 11% y/y.  Sales in the US were up 10% y/y

The company’s net income jumped 173% to C$3.5m as expenses were reduced during the quarter, and EBITDA rose by 125% to C$6m versus the same period in 2009.  Gross margins were 60%, slightly down from Q2 2009, but up from 57.7% in the previous quarter.  This is a good showing in a competitive market, which the company attributes to a higher margin mix, and increased sales of routing switchers.

Full Details Here

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DivX Q2 Revenue Jumps 29%

DivX announced that its Q2 revenues were up 29% y/y and that its licensing business was up 23% y/y.  The company, which is in the process of being acquired by Sonic (who also announced their numbers recently) posted a GAAP Loss of $2.8m, and non-GAAP NI of $760K

Read the Divx earnings press release here 

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DG FastChannel Reports Record Q2

Advertising and broadcast content delivery specialist DG FastChannel reported record results for its FY2010 second quarter, blowing past the expectations of equity analysts. 

Revenue for the quarter was $60.3m, well ahead of the $55.6m consensus estimate of equity analysts.  This represents a 38% revenue increase versus the same period a year ago, and an increase of 11% from the previous quarter.  Net income for the quarter was $9m, up 150% increase versus Q2 2009 and up 12.5% versus the previous quarter.

Significantly, the company’s revenue from the delivery of HD advertising content increased 99% to $23.9 million versus the same period of 2009.

The company also that it retired all of its outstanding debt, thanks to a recent public equity offering that raised net proceeds of approximately $108m. As a result of this offering, the company reported that as of June 30, 2010, it has $79.6 million in cash and no debt.

Company Chairman & CEO Scott Ginsburg said “The Company continues to execute on its strategic business plan… revenue, margins, earnings and net debt show marked improvements during the second quarter.”

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Harris Broadcast Records $21m Operating Loss

Harris Corporation reported its Q4 and full year 2010 results.  While the company as a whole did well, the broadcast communications division continued to struggle.

For the full year, revenues from the broadcast communications division were down 17% versus the previous year.  For Q4, the company’s broadcast revenues were down just 1.9% y/y, although orders were down 12.5% versus the same period last year.

In the 4th quarter of FY 2010, Harris posted an operating loss of $21m.  According to the company, this “includes $7 million in charges related to cost-reduction actions and $6 million in inventory write-downs associated with weaker demand.”

Harris CEO Howard Lance said the following about the revenue of the broadcast division: “we continue to expect revenue in a range of $490 million to $510 million with break-even operating results. We expect to see continued operating losses in the first half of the year with profitability improving in the second half of the fiscal year.”

Full Details Here

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RealD Reports 1st Results As Public Company

3D specialist RealD announced its first results as a public company, and reported huge y/y increases in revenue and EBITDA, which were up 152% and 387% respectively.  The company announced that it has now deployed 7500 screens, significantly more than Technicolor, who announced recently that they have now deployed 250 screens, 

Read the RealD earnings press release here.

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Broadcaster & Platform Operator Earnings

DISH Network Reports Second Quarter 2010 Financial Results 

DISH Network reported total revenue of $3.17 billion for the quarter ended June 30, 2010, a 9.1 percent increase compared with $2.90 billion for the corresponding period in 2009.

DISH Network lost approximately 19,000 net subscribers during the quarter ended June 30, 2010, ending the quarter with approximately 14.318 million subscribers.

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Ascent Media Reports Lower Revenue, Higher Losses

Digital media service provider Ascent Media reported increased losses and lower revenue for the second quarter ended of 2010.  The company attributes the lower results to market volatility and lower capital spending by customers. 

Revenue for the quarter dropped 13% to $99.5m, while revenue for the first six months was off 11% to $204m.  The company said that the decline in second quarter and year-to-date revenue was driven primarily by a reduction in revenue from the Content Services segment.

Q2 losses from continuing operations before income taxes were $17.5m, compared to a loss of $12.4 million in the prior year period. Year-to-date, the loss from continuing operations before income taxes was $28.6 million compared to a loss of $23.2 million for the six months ended June 30, 2009.

 “Ascent’s year-to-date operating results have not met our expectations as uncertainty about the timing and pace of the economic recovery has led to ongoing volatility in the media marketplace,” said William Fitzgerald, Ascent’s CEO. “A consequence of the current environment is that our customers have continued to take a cautious approach to capital spending.”

Fitzgerald was more upbeat about the rest of 2010, saying “We are beginning to see positive indications of an upturn, including first half revenue improvement in our creative services business, a strengthening pipeline of feature film and other projects, and rising industry advertising estimates for the second half of 2010.”

Ascent’s full earnings press release can be found here.

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Scripps Reports Second-Quarter Results 

Scripps reported operating results for the second quarter of 2010 that showed a continuing trend of significantly improved year-over-year revenue performance in the television division – up 22 percent from last year.

You can read the Scripps earnings release here.

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Liberty Media Reports Second Quarter 2010 Financial Results

The Liberty Media press release is here.

Liberty Media investor conference call transcript here.

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DIRECTV Q2 Rev Up 12%, Net Income up 33% Buys Back Stock 

DTH satellite operator DirecTV announced that it grew revenues by 12% to $5.85Bn and Net Income 33% to $543 Million.

DirecTV Q2 Press Release Here

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Cablevision Systems Corporation Reports Second Quarter 2010 Results 

Cablevision’s Q2 profits fell by 30% but its revenues were up 5.8% to $1.802 billion versus the same period a year ago, which the company says reflects solid revenue growth in Telecommunications Services and Rainbow, offset slightly by a decline at Newsday. Consolidated adjusted operating cash flow grew 9.0% to $677.6 million and consolidated operating income grew 23.0% to $416.8 million, both compared to the prior year period.

You can read the Cablevision press release here

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WSJ.com – Net Rises at Time Warner Cable, Falls at Cablevision

According to a Wall Street Journal article, Time Warner’s second-quarter earnings rose 8.2% on solid revenue growth, but the nation’s second-biggest cable-television provider saw the same weakness in subscriber additions in July felt by its larger cable counterpart, Comcast Corp.

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News Corp Reports Q4 and Full year Results – TV Station Operating Income up 13%

News Corp’s Q4 revenue increased by 6% and it hauled in Net Income of $875m.  Significantly, the company’s TV Operating Income was up 13% versus the same period last year, driven by an improved TV station advertising market.

Here’s the full News Corp press release 

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CBS 2Q TV Station Revenue Climbs 31%

According to leading industry website TV News Check, TV station revenue at CBS jumped by 31%. The company also realized a 17% increase in local broadcasting revenue (TV stations plus CBS Radio) to $678.2 million from $579.5 million in the year-ago quarter. Sumner Redstone, the company’s executive chairman called the results “Terrific”

Full story from TV News Check

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Sinclair Broadcast Group Reports Q2 Results.

Sinclair Broadcast Group, one of the largest US TV station groups reported that its net broadcast Q2 revenues from continuing operations were up 19.3% versus the prior year.  The company had net income of $17.3 million versus $2.8 million in the prior year period.  Local net broadcast revenues, which include local time sales, retransmission revenues and other broadcast revenues, were up 16.6% in the second quarter 2010 while national net broadcast revenues, which include national time sales and other national broadcast revenues, were up 27.7% versus the second quarter 2009.

Full story from TV News Check

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WSJ.com – Discovery Turns In 40% Decline in Profit 

According to an article in the Wall Street Journal, Discovery Communications posted a 40% drop in its second-quarter profit, hurt in part by costs related to its recent $3 billion debt refinancing. Still, the cable-network operator showed revenue and operating-profit growth, and announced a $1 billion share repurchasing program.

Full article from the Wall Street Journal

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Barrington Sees 14% Jump In 2Q Revenue

Barrington Broadcasting Group announced that gross revenues for the quarter ended June 30 increased 13.6% to $32.7 million from $28.8 million for the same period a year earlier. The company said the increase was primarily due to 16.7% increase in national revenues, a 4.7% increase in local revenues, and an increase in political revenues of $900,000 to $1 million.

Full Story from TV News Check

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Gray Beats Street

According to TVB, Gray Television came in ahead of analyst expectations for the second quarter. The pure-play TV group posted revenues of $75.6 million for the 36 stations, up 16 percent from a year earlier. Net income was $534,000 compared to a loss of $6.6 million a year ago. After payment of $6.4 million in dividends, net loss to common stockholders was $5.9 million, or 11 cents a share.

Full Story from TVB

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Broadcast Industry M&A Continues

Blackmagic Buys Assets of Echolab

As predicted here last month, Blackmagic Designs announced that it has acquired “all the assets of Echolab,” putting Blackmagic in the production switcher business.

Echolab was forced into liquidation a few months ago when its primary shareholder stopped funding its operations.  The company had been in business for more than 35 years, specializing in low-end production switchers.

Blackmagic is buying Echolab for the latter’s ATEM product line, which was introduced about two years ago and has been continuously upgraded since under Echolab’s former CEO Nigel Spratling, who apparently not part of the Blackmagic deal and has now joined Ross Video in a marketing role.

This is great news for the affected Echolab employees, who were left jobless in an instant when the company shut its doors in mid-May.  It’s also good news for the industry, because the ATEM switcher product line, which looks like a pretty good product, will continue to be available through Blackmagic.  In fact, Blackmagic has said that it is adding to the engineering team responsible for ATEM.

It will be interesting to see how Blackmagic approaches the production switcher market, which is different than the company’s core post production market.  The part of the production switcher market where Echolab is active has considerable competition. In addition to Echolab, Sony, Panasonic, JVC, For-A and Ross Video are all very active players in this space.   

In addition to the competitive aspects of the deal, it seems to me that selling production switchers is a bit of a departure business-wise for Blackmagic.  Production switchers are a “high-touch” product category.  They are mission critical elements of the live production workflow, and as such they can require extensive demonstrations and training.  The majority of Blackmagic’s products are plug-in cards or stand-alone units, which are sold primarily through third-party dealers.  

At this point, I am unsure whether Blackmagic’s all-dealer sales approach is a positive or a negative for Echolab.  On the plus side, the compact HD production switcher market is a large and somewhat amorphous, running the gamut from broadcasters to corporation, to churches to education –  so it requires a large dealer network, which Blackmagic already has in place.  On the other hand production switchers require a specialized sales approach. Every buyer wants a demonstration, which typically involves shipping equipment and people, thereby increasing the cost of each sale.  Blackmagic will probably have to augment their approach somewhat in order to be successful selling production switchers.

Still if they can get the distribution right, Blackmagic may have a good chance of making their purchase of Echolab a success.  Blackmagic most likely paid very little for Echolab’s assets, and since it’s buying the assets and not the company, it gets a brand new HD switcher line, but not 35 years of legacy products that need support.  And Blackmagic does have experience buying distressed “traditional” vendors and changing their approach.  Last year, Blackmagic acquired leading color grading vendor Da Vinci Systems, and proceeded to radically change Da Vinci’s market approach, not to mention its pricing, turning a $200,000 hardware product into a sub-$1000 product according to TVB Europe.

Arguably however, Da Vinci’s color grading products (which are used off-line in post production) were easier to port to software platforms – and they still require a very expensive hardware controller.  Live production switchers are a different kettle of fish than off-line color grading systems for post production.  They are the key element of any live broadcast production, and they are still a relatively expensive hardware platform that requires specialist sales and support.

Blackmagic CEO Grant Petty is obviously familiar with this.  In the company’s press release that announced the deal he said: “I have been using live production switchers since I was in school where we covered local theater, sports, racing and bands. I think it’s the most exciting way to do production because it’s all live and thousands of people are watching what you are doing! Production switchers need to be powerful while also being familiar and easy to operate.”

Petty also said that “Since the acquisition, we have already dramatically expanded the engineering team working on ATEM. This fresh engineering team, which is a combination of new as well as experienced EchoLab staff, will allow us to move faster in adding new features to the ATEM product.”

Blackmagic will be displaying the ATEM on its booth at the IBC show next month. 

Here is a link to the full press release announcing the deal.

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Transcoding Consolidation — Telestream to Acquire Anystream

Over at his always informative Business of Video blog, Streaming Media’s Dan Rayburn writes that Telestream is to Acquire fellow transcoding provider Anystream from parent Gab Networks.  This is a deal has long been rumored, and according to Rayburn has now been confirmed by the management of both companies.

There’s been quite a lot of activity in the transcoding space recently.  Ripcode was sold to RGB networks and Elemental Technologies announced other week that it had raised $7.5m of new venture money, bringing its total to $14m

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Other Broadcast Technology Vendor News

Chyron Appoints New Chief Commercial Officer 

Chyron has appointed Susan Brazer as its new Chief Commercial Officer.  According to the company’s press release, Brazer has a big job, taking responsibility for “commercial strategy and all product and services revenues, directing its worldwide sales network of direct sales, resellers/systems integrators and joint ventures in Europe, Asia, Latin America and the Middle East.”

This is the second C-Level appointment recently.  The company previously announced that it had appointed Bonnie Barclay as VP and Chief Marketing Officer.

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New COO at Vizrt

Vizrt has appointed François Laborie as its new Chief Commercial Officer. Laborie replaces David Zerah who left Vizrt to become managing director of gaming firm Dragonfish.

Laborie joined Vizrt at the beginning of 2006 as the Company’s Executive Vice President Marketing. At the beginning of 2010, he took on the additional role of Regional President for the EMEA region.

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3D News

Technicolor announced this week that it has now installed its 3D system at 250 screens – good progress, but far less than clear leader RealD’s 7,500.

 

Mobile TV News

 According to an article in TVB,  Broadcast and WiFi Take Wind Out of FLO TV Sales 

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Other News

The Financial Times reports that News Corp has refused to refuses to raise its offer for BSkyB 

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Also in the FT, the BBC is under fire over Canvas project 

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Market Research Note of the Week:

Who are the Most Important Decision Makers in Broadcast Technology?  Vendors Predict Shift Towards Operations and IT

In a recent article, “Broadcast Industry’s Largest Market Study Reveals Most Important Technology Trends,” the move toward file-based, tapeless workflows was highlighted as one of the most important issues to broadcasters today.

But how will this shift affect how broadcast technology products are purchased, not to mention who buys them? Traditionally, these products have been purchased primarily by engineers. Will this be the same for products that are increasingly IT-based, or will there be a new set of buyers? Broadcast vendors need to know this because a new set of buyers may require a new market approach.

To find out, we asked the nearly 800 broadcast technology vendors who responded to the 2010 Big Broadcast Survey who they feel is currently the most important decision maker in the sales process, and who they feel will be most important in two to three years.

Let’s start with the most important buyers today. Respondents were asked, “When selling your products/services, which category of customer is typically the most important decision maker today?” According to responses, broadcast tech vendors see engineering staff as their most important customers, followed by operations, IT and finance personnel. Engineers are clearly seen as the most important decision makers, with operations staff a distant second.

But what about the future?

To read the full article, including four charts that break down the results, click here.

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