Posts Tagged ‘Vizrt’

Vizrt Q1 2013 Revenue Declines 15 Percent Due to Weakness in Europe

broadcast technology market research | Posted by Joe Zaller
May 09 2013

Vizrt reported that its revenue for the first quarter of 2013 was $27m, down 15% versus the same period a year ago, and down 11% versus the previous quarter.

The company said that market and economic conditions in Europe continue to be difficult, attributable mainly to falling domestic demand for goods and services and lower exports, and that this general weakness strongly affected the company’s sales in the EMEA region during the quarter.

Gross margins for the first quarter of 2013 were 65%, down from 67% last year and down from 70% last quarter.  In its earnings presentation, the company highlighted the fact that its gross have remained “relatively stable,” despite declining revenue.  Company management said this was due to a “shift in product mix towards higher margin broadcast graphics activities, and by a continued focus on cost control.”

Operating expenses for the quarter were $15.5m, down 9% versus last year due to cost control measures that the company has had in place for several quarters. The company said that OpEx was kept at a similar level to the 2012 average quarterly run rate, leading to continued profitability and cash generation from operating activities, though at lower levels. Specifically:

  • R&D expenses in the quarter were $5m (19% of revenue), down 2% versus the same period ago, and up 31% versus the previous quarter

 

  • Sales and marketing expenses in the quarter were $7.7m (29% of revenue), down 14% versus the same period a year ago, and down 1% versus the previous quarter

 

  • General and administrative expenses in the quarter were $2.8m (10% of revenue), down 8% versus the same period a year ago, and up 4% versus the previous quarter.

 

EBITDA was $3.1m for the quarter, down 44% from $5.6m last year, and down 65% versus the previous quarter.   The EBITDA margin for the quarter was 12% versus and EBITDA margin of 18% last year and 29% last quarter.

Net profit for the quarter was $1.18m, down 45% versus the same period a year ago, and up 28% versus the previous quarter.

 

Product Line Results for the Quarter:

  • Broadcast Graphics (BG) accounted for $21.9m during the quarter (81% of total revenue), a decline of 12% versus the same period ago, and a decline of 7% versus the previous quarter. The BG order backlog was $26.8m, up 7% versus last year, and up 6% versus the previous quarter. The company said that broadcast graphics performed in-line with its expectations.

 

  • Media Asset Management (MAM) revenue in the quarter was $4.2m (16% of total revenue), down 12% versus the same period a year ago, and down 7% versus last quarter. The company said that MAM was strongly affected by uncertainties in Europe. The MAM order backlog was $18,5m, down 12% versus the same period a year ago, and up 1% versus the previous quarter. Vizrt management said there has been a “further lengthening of investment decision-making cycles” for MAM deployments, especially for larger projects.  Vizrt said it has not lost MAM deals, instead projects have been postponed or are still under negotiation, and therefore still in the company’s MAM pipeline.

 

  • Online & Mobile (OLM) revenue in the quarter was $876,000 (3% of total revenue), down 44% versus last year and down 31% versus last quarter.  The OLM order backlog was $3.7m, down 6% versus last year, and up 5% versus the previous quarter. The company said that ONM performance “continues to be below expectations and, as announced on April 30, 2013, an additional impairment charge of MUSD 3.0 for 2012 was recorded, following which no goodwill or intangible assets remain on Vizrt’s balance sheet in relation to the Escenic acquisition.”

 

Geographic Performance for the Quarter:

Vizrt had a rough quarter in EMEA, traditionally its strongest market, but this weakness was offset partially by a strong performance from the Americas region.

  • Revenue from EMEA was $11.1m (41% of total revenue), down 38% versus the same period last year and down 20% versus last quarter

 

  • Americas revenue was $9.4m (35% of total revenue), up 32% versus last year, and up 18% versus last quarter.  The company said that “although certain macro-economic conditions in the U.S., such as reduced government spending, have had a somewhat dampening effect on GDP development, overall the region posted solid economic growth.”

 

  • APAC revenue was $6.5 (24% of total revenue), down 3% versus last year, and down 23% versus last quarter

 

The company ended the quarter with 582 employees, up from 575 last quarter, and $77.86m in cash, down 1% versus last quarter.

 

Outlook

The company said that despite economic uncertainties, it continues to see a number of positives in the market. Though management expects the economic uncertainties to continue affecting the business climate into 2013, it still believes that the second half of the year will start to show an improvement in the global economy in general, and bring a return to growth for Vizrt.  Focus for 2013 will remain on cost control, without compromising the company’s ability to innovate and support our strategic growth ambitions.

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Related Content:

Press Release: Vizrt Reports Q1 2013 Results

Vizrt: Q1 2013 Earnings Call Presentation

Broadcast Vendor M&A: Vizrt Buys Remaining Shares of LiberoVision

Previous Quarter: Vizrt Posts Lower Revenue, but Higher Margins and Profit in Q4 and Full Year 2012

Previous Year: Vizrt Revenue Increases 13% in Q1 2012 Driven by Strong Performance in Graphics and MAM

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Broadcast Vendor M&A: Vizrt Buys Remaining Shares of LiberoVision

Broadcast Vendor M&A | Posted by Joe Zaller
Feb 28 2013

Vizrt announced that it has closed the third and final tranche of the acquisition of virtual sports enhancement technology provider LiberoVision.  Following the closing of the deal, Vizrt will own 100% of the outstanding share capital of LiberoVision.

The purchase price for this transaction was $2.4m, comprised 80% cash ($1.9m) and 20% Vizrt stock (135,908 shares), and was based on a previously announced earn-out formula whereby Vizrt would  pay  20% of ten times LiberoVision 2012 EBIT.

In total, Vizrt paid $10.4m for LiberoVision.

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Related Content:

Press Release: Vizrt closes third tranche of LiberoVision AG acquisition

Vizrt Posts Lower Revenue, but Higher Margins and Profit in Q4 and Full Year 2012

More Broadcast Vendor M&A: Vizrt Acquires Additional 20 Percent of LiberoVision

More Broadcast Vendor M&A: Vizrt Acquires Sports Replay Provider LiberoVision AG

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Vizrt Posts Lower Revenue, but Higher Margins and Profit in Q4 and Full Year 2012

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 21 2013

Broadcast graphics and media asset management (MAM) provider Vizrt reported that its revenue for the fourth quarter of 2012 was $30.3m, down 9% versus the same period a year ago, and up 2% versus the previous quarter. 

The company attributed the revenue decline to weakness in the European market.

On an operating basis, the company posted a profit of $5.6m, down 22% from last year, and up 30% versus last quarter.

Despite the lower top line number, the company’s EBITDA for the fourth quarter of 2012 was $8.9m, flat with last year and up 51% versus last quarter.   The translates to an EBITDA margin for the quarter of 29% versus 27% last year and 20% last year.

Gross margins for the fourth quarter of 2012 were 70%, up from 69% last year, and 66% last quarter.

Operating expenses for the quarter were $14.28m, down 11% versus last year, and down 6% versus last quarter.

R&D expenses in the quarter were $3.84m, down 19% versus last year, and down 14% versus the previous quarter.

Sales and marketing expenses in the quarter were $7.76m, down 3% versus last year, and down 4% versus the previous quarter.

G&A expenses in the quarter were $2.68m, down 17% versus last year, and down 1% versus the previous quarter.

The order backlog at the end of the quarter was $47.1m, up 2% versus the same period a year ago, and down 1% versus last quarter.

The company ended the fourth quarter of 2012 with 575 employees, compared to 585 last quarter, and 575 last year The company said that the year-over-year decrease in headcount is due to the its strict recruitment policy in 2012, which limited both replacements and new recruitments.

At the end of the quarter, Vizrt had no debt and $78.9m in cash, up from $73.1m last year, and $75.4m last quarter.

 

Product Line Results for the Quarter:

  • Broadcast Graphics (BG) revenue in the quarter was $23.6m (78% of total revenue), down 12% versus last year and up 4% versus last quarter.  The BG order backlog was $25.3m, up 1% versus last year, and up 2% versus last quarter.

 

  • Media Asset Management (MAM) revenue in the quarter was $5.4m (18% of total revenue), up 12% versus the same period a year ago, and down 7% versus last quarter. The MAM order backlog was $18.3, up 9% versus the same period a year ago, and down 3% versus last quarter.

 

  • Online & Mobile (OLM) revenue in the quarter was $1.3m (4% of total revenue), down 29% versus last year and up 16% versus last quarter.  The OLM order backlog was $3.5m, down 24% versus last year, and down 10% versus last quarter.

 

Geographic Performance for the Quarter:

  • Revenue from EMEA was $13.9m (46% of total revenue), down 25% versus last year and up 2% versus last quarter.

 

  • Americas revenue was $8m (26% of total revenue), up 3% versus last year, and flat versus last quarter

 

  • APAC revenue was $8.4 (28% of total revenue), up 19% versus last year, and up 5% versus last quarter

 

Full Year Results:

Revenue for the full year 2012 was $121.8m, a decline of 3% versus 2012, which was a record revenue year for the company.

Gross margins for the year were 67%, up from 66% in 201, and 62% in 2010.

EBITDA for 2012 was $25.8m, up from $24.9m in 2011. This translates to an EBITDA margin of 21%, up form 20% in 2011.

Full year 2012 R&D expenses were $18.08m, down 6% versus last year. R&D as a percentage of revenue was 15%, the same as in both 2012 and 2011. Sales and marketing expenses in 2012 were $33.36m, down 1% versus 2012. Sales and marketing expenses in 2012 were 27% of revenue. G&A expenses for the year were $11.18m, down 2% versus last year.  This equates to 9% of revenue.

EBITDA for the full year 2012 was $25.8m 24.9m (21%), an increase from $24.9m (20%) in 2011, and up from $16.1m in 2010 (15%).

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Product Line Results for the Full Year:

  • Broadcast Graphics revenues for 2012 were $94.3m or 77% of total revenues.  2012 revenue from broadcast graphics was down 3% versus 2011, but remained constant as a percentage of revenue.
  • MAM revenues for 2011 were $21.9m, up 7% versus 2011.  MAM sales accounted for 18% of total revenue in 2012, up from 15% of revenue in 2011.
  • Online & mobile revenue for 2011 was $5.7m, down 32% versus 2011. This equates to 5% of total revenues, down from 8% of revenue in 2011.

 

Geographic Performance for the Full Year:

The company said that revenue in both the Americas and APAC regions increased 9% versus 2011.  However, 2012 revenue from EMEA declined 13% versus the previous year.

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Business Outlook:

At the beginning of 2012, the company reiterated earlier guidance of 13% revenue growth and improving margins based on a strengthening outlook. This changed in July 2012, when the company issued a profit warning.

Martin Burkhalter, Vizrt CEO, commented on the results: “Despite tough market conditions in Europe in 2012, we were able to conclude the year with nearly flat revenues compared to last year, as well as improving our margins. The decline in revenues was due to the continued market weakness in Europe, where macro-economic related uncertainties resulted in substantially longer investment decision cycles, especially with regards to larger projects. Although these effects weigh on the global business environment, we managed to increase our sales in APAC and The Americas.”

“Our margin improvement is the direct result of a strong focus on cost control, as well as an improvement of our gross margins. Despite our focus on cost control, we have not compromised our capabilities to implement our strategic objectives and further development of the company, maintaining our innovative edge, and offering prime products and services enabling our clients in achieving high quality and workflow efficient content distribution and channel differentiation.”

“As to our product lines, BG has been relatively stable. Notwithstanding the difficult market conditions we recorded further growth in MAM. We feel that broadcasters and other content owners are recognizing the importance of a file based workflow and the value of extending and expanding the economic life and usability of media assets. We expect broadcasters to continue to invest in this area and we therefore see an even stronger upside for this product line once there is a more sustainable global economic recovery. Performance of our Online business was below expectations. This product line is strongly affected by the uncertainties in the macroeconomic environment.”

“We see ourselves returning to our earlier communicated 13% target revenue growth, mid- to long-term. For 2013 we anticipate growth, though in the mid to high single digit range. Growth will come predominantly from The Americas and APAC, with Europe expected to show a modest recovery in the second half of the year. For 2013 we will maintain our focus on cost control, though as said, without compromising the strength of our organization, and we will continue to invest in expanding our product and market leadership position.”

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Related Content:

Press Release: Vizrt Reports Q4 and 2012 Results

Vizrt Q4 and Full Year 2012 Analyst Presentation

Previous Quarter: Vizrt Grows Operating Margin Despite Lower Revenue in Q3 2012

Previous Year: Vizrt Reports Record Revenue in 2011, Targets 13 Percent Growth in 2012

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Vizrt Grows Operating Margin Despite Lower Revenue in Q3 2012

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Nov 18 2012

Broadcast graphics and media asset management (MAM) provider Vizrt reported that its revenue for the third quarter of 2012 was $29.6m, down 7% versus the same period a year ago, and a decline of 2% versus the previous quarter.

Net income for the third quarter of 2012 was $3m, compared to net income of $3.3m last year, and a net loss of $4.4m last quarter, when the company took a $7.8m non-cash impairment charge relating to the 1998 purchase of Escenic.

On an operating basis, the company posted a profit of $4.3m, up 14% from last year, and up 12% versus last quarter.

EBITDA for the third quarter of 2012 was $5.9m, up 5% versus last year and up 8% versus last quarter.   The EBITDA margin for the quarter was 20% versus 18% last year and 18% last year.

Gross margins for the third quarter of 2012 were 66%, flat with last year last quarter.

Operating expenses for the quarter were $15.265m, down 12% versus last year, and down 5% versus last quarter.

The order backlog at the end of the quarter was $47.8m, down 2% versus the same period a year ago, and down 2% versus last quarter.

The company ended the third quarter of 2012 with 575 employees, compared to 582 last quarter, and 591 last year, The company said the headcount reduction is primarily the result of strict recruitment policy.

At the end of the quarter, Vizrt had no debt and $75.4m in cash, up from $73.1m last year, and $69.6m last quarter.

 

Product Line Results for the Quarter:

  • Broadcast Graphics (BG) revenue in the quarter was $22.7m (77% of total revenue), down 12% versus last year and down 2% versus last quarter.  The BG order backlog was $24.9m, up 1% versus last year, and down 6% versus last quarter.

 

  • Media Asset Management (MAM) revenue in the quarter was $5.8m (20% of total revenue), up 35% versus the same period a year ago, and up 8% versus last quarter. The MAM order backlog was $18.9, down 4% versus the same period a year ago, and up 5% versus last quarter.

 

  • Online & Mobile (OLM) revenue in the quarter was $1.1m (4% of total revenue), down 34% versus last year and down 36% versus last quarter.  The OLM order backlog was $4m, down 6% versus last year, and up flat with versus last quarter.

 

Geographic Performance for the Quarter:

The company said that “the economic slowdown in most Euro zone countries continued to impact our results. The Americas and APAC regions, however, recorded growth.”  Specifically:

  • Revenue from EMEA was $13.6m (46% of total revenue), down 23% versus last year and down 9% versus last quarter.

 

  • Americas revenue was $8m (27% of total revenue), up 19% versus last year, and up 9% versus last quarter

 

  • APAC revenue was $8 (27% of total revenue), up 8% versus last year, and up 1% versus last quarter

 

Year-to-date Results

Vizrt’s revenue for the first nine months of 2012 was $91.5m, essentially flat versus the first nine months of 2011.

Net income for the first nine months of 2012 was $800,000, down significantly from net income of $10m for the first nine months of 2011. Year-to-date net income was impacted by a Q2 2012  non-cash impairment charge of $7.8m relating to the 1998 purchase of Escenic.

EBITDA for the first nine months of 2012 was $16.9m, up 6% versus the same period last year.  The year-to-date EBITDA margin was 18%, compared to 17% last year.

Gross margins for the nine months of the year were 66%, up from 65% last year.

Operating expenses for the first nine months of 2012 were $48.33, flat with last year.

 

Business Outlook:

At the beginning of 2012, the company reiterated earlier guidance of 13% revenue growth and improving margins based on a strengthening outlook. This changed in July 2012, when the company issued a profit warning.

Martin Burkhalter, Vizrt CEO, commented on the results: “As discussed at the time of our Q2 release, we continue to experience challenging market conditions.  The uncertainties in the general economic environment, most notably in Europe, have led to a lengthening of investment decision making cycles.  Against this background, we recorded revenues nearly equal to last year’s first nine months, and down 7% compared to Q3 of last year.  Furthermore, we have managed to improve our margins, with EBITDA and EBIT coming in at 20% and 15%, of revenues respectively, for the quarter.”

“Product wise, performance this past quarter was backed by a strong showing in MAM, especially in APAC, whereas BG slightly increased Y-o-Y.  Revenues for ONL suffered, down significantly, which is to be expected as media houses are less likely to make what they would regard as non-core investments in times of uncertainty. For the regions, the main weakness, as expected, was in Europe, while the U.S. posted growth both Year on Year and Quarter on Quarter.”

“Despite the experienced softness in the market, we managed to increase our cash position to over $75m, a nearly $6m increase for the quarter.  We believe these figures show the depth and strength of our offering.”

“Another evidence to the strength of our offering is that Vizrt was once again the vendor of choice for broadcasters looking to capture audiences in relation to the U.S. presidential elections. In the United States alone, six national networks and more than 150 local channels covered the election with Vizrt tools – more than ever before.”

“Going forward, we expect that the general economic environment will continue to influence market conditions and prolong decision making cycles, especially in Europe.  However, our healthy backlog together with our strong product offering, give us the confidence that we should be capable of delivering a solid result for the full year, despite the challenging market conditions”.

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Related Content:

Press Release: Vizrt Reports 9 Months and Q3 2012 Results

Previous Quarter: Vizrt Revenue Declines 6 Percent in Q2 2012 Due to Weakness in EMEA

Previous Year: Vizrt Reports Q3 2011 Results

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Evertz Discloses Orders Worth More Than $12 Million From Two Mystery US Customers

Broadcast technology vendor financials | Posted by Joe Zaller
Nov 02 2012

Broadcast infrastructure specialist Evertz Technologies reported that it has received purchase orders “from two national US customers, totaling in excess of $12 million.”

The company says that these orders “reflect the adoption by key customers of Evertz latest technologies for large scale routing, infrastructure and control solutions.”

This announcement is an unusual move for Evertz, which has a reputation for being tight-lipped about its operations, so it begs the question why the company made announcement and whether there is any implication to its timing.

After all, Evertz is a C$300M+ company so big orders are a regular occurrence.

When the company reported its results for the quarter that ended July 31, 2012, Evertz posted revenue of C$96m last quarter, up 28% versus the same period a year ago, and up 26% versus the previous quarter.

During the company’s most recent quarter, Evertz said it had received 76 orders of C$200,000 or more, and that the top ten customers in the quarter had accounted for 41% of revenue – that’s almost C$40m, or an average of almost C$4m per customer.

More significantly Evertz said that one (unnamed) customer last quarter accounted for 15% of total revenue, or C$14.4m — in other words, a single customer last quarter placed orders worth about twenty percent more than the two customer wins announced today – but the company did not announce it via a press release.

So why today’s announcement?

Maybe Evertz wants to show continued growth in the US market at a time when others are struggling there – for example, when Avid issued their Q3 2012 results, they said Americas revenue declined 19%year-over-year, and Harris Corp William Brown said during the company’s Q1 FY13 conference call that the results of Harris Broadcast (BCD) “were a little less than what we had expected, both because the market’s a little bit tough and because some of the issues around our selling the business [caused] some of our customers to be a bit hesitant.”

Maybe they want to demonstrate that their order backlog (which was at a record level two quarters ago) is being re-built after the Olympics and US elections.

Or maybe they have decided to be more communicative with the market. Other public companies in the broadcast space have taken this decision.  For example Vizrt decided to do this recently – they now announce all deals over a certain value in order to give the market more visibility.

Perhaps time will tell.

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Related Content:

Press Release: Evertz Receives Purchase Orders Totaling Over $12 Million

Most Recent Quarter: Evertz Beats Expectations in Q1 Fiscal 2013 as Profits Jump 41 Percent

Previous Quarter: Evertz Q4 FY 2012 Revenue Rises 11 Percent, Order Backlog at Record Level

Previous Year: Evertz Beats Expectations in Q1 2012 as Domestic Revenue Increases Six Percent

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Ranking Broadcast Technology Vendors Part 4 — the 2012 BBS Broadcast Technology Vendor Innovation League Table

broadcast industry technology trends, broadcast industry trends, broadcast technology market research, Broadcast Vendor Brand Research, market research, technology trends, Top Broadcast Vendor Brands | Posted by Joe Zaller
Sep 17 2012

This is the seventh in a series of articles about some of the findings from the 2012 Big Broadcast Survey (BBS), a global study of broadcast industry trends, technology purchasing plans, and benchmarking of broadcast technology vendor brands. Nearly 10,000 broadcast professionals in 100+ countries took part in the 2012 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry.

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This is the fourth post in an occasional series of articles about how broadcast technology vendors were ranked and benchmarked on a variety of metrics by the respondents to the 2012 BBS.

The previous three articles in this series described the 2012 BBS Overall Brand Opinion League Table, the 2012 BBS Net Change in Overall Brand Opinion League Table, and the 2012 BBS Global Brand Opinion Leaders League Table.  These rankings show how the global sample of 2012 BBS respondents rated a variety of broadcast technology vendor brands in terms of their overall opinion of these vendors, and also how their opinions have changed over time.

This post looks at one of the most important metrics for any technology company – innovation.

The product side of the film & broadcast industry is driven by technology and innovation.  All vendors spend heavily on research and development in order to create advanced technologies that make their products stand out from the competition.  Thus innovation is a very important component of the brand image and reputation of vendors in this space.

To find out which broadcast technology vendors are considered to be most highly regarded in terms of innovation, respondents were asked to rank broadcast technology vendor brands for “Innovation” on a scale of 1-10 – with 10 being best in the market, and 1 being worst in the market.  The top 30 ranked brands for innovation are shown below for the global sample of all respondents.


Please note that these results are shown in alphabetical order, NOT in the order in which they were ranked in the study. 

 

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There are a wide variety of companies on this list, including large and small firms; single product and multi-product firms; global and regional players; and audio and video technology providers.

Let’s look specifically at the how these companies and their products were ranked in the 2012 BBS, beginning with products and technology.

As shown in the chart below, these companies make products in 22 of the 30 product categories that we covered in the 2012 BBS.

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2012 BBS Broadcast Technology Vendor Innovation League Table — Frequency of Product Categories:

 

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The top product categories provided by brands in the 2012 BBS Broadcast Technology Vendor Innovation League Table are audio vendors – audio consoles and microphones each appear four times in this ranking. This is a change from last year, when the top product categories were microphones, video transport, and signal processing / interfacing / modular.

Does company size play a role in innovation?  Larger companies offer more products and are consequently used in more places than their smaller counterparts.  But this does not necessarily translate into innovation.

The chart below breaks down the 2012 BBS Broadcast Technology Vendor Innovation League Table by the number of product categories (as defined by the 2012 BBS segmentation) offered by each brand listed in this ranking.

 

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2012 BBS Broadcast Technology Vendor Innovation League Table – # of Product Categories Offered by Vendor

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Although the top two product categories in 2012 BBS Broadcast Technology Vendor Innovation League Table, just over one-third of the vendors in this ranking are pure-play audio vendors.

There are also many more hardware companies in the ranking versus software companies.

Interestingly, this ranking is dominated by companies that provide products in a single product category – 18 out of 30 brands in this list. This suggests that focused companies who apply their efforts to specialist product areas are often able to generate more innovation in the eyes of the market.

At the same time, larger companies are also represented on this list of the broadcast industry’s top innovators. Snell provides products in the most categories in the 2012 BBS Broadcast Technology Vendor Innovation League Table, followed by Omneon and Sony – please note that 2012 is likely the last time that we will cover Omneon as a stand-alone brand as it has now been fully absorbed into Harmonic.

Of course, companies are listed here based on how many 2012 BBS product categories they produce, which is not an absolute measure of the products offered be each vendor on this list. There are some very large companies on the list above who appear in just one 2012 BBS category.

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Please keep the following in mind when reviewing this information: All data these charts are presented in alphabetical order, not in the order brands were ranked by respondents to the 2012 BBS. All data in this article measures the responses of all non-vendor participants in the 2012 BBS, regardless of organization type, organization size, job title, geographic location, or purchasing authority — responses based on individual organization types or geographic locations may be very different from the results shown in this article.  There is a minimum sample size requirement for any brand to be included in any cut of the data presented in this article. There were a total of 152 brands covered in the 2012 BBS, for a complete list please click here. Granular analysis of these results is available as part of various paid-for reports based on the 2012 BBS data set. For more information about this report, please contact Devoncroft Partners.

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Devoncroft Partners has published a variety of reports from 2012 BBS data.  For more information, please get in touch.

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Related Content:

The 2012 Big Broadcast Survey – Information and available reports

The 2012 BBS Broadcast Industry Global Trend Index

Tracking the Evolution of Broadcast Industry Trends 2009 – 2012

Analyzing Where is Money Being Spent in the Broadcast Industry – The 2012 BBS Broadcast Industry Global Project Index

Ranking Broadcast Technology Vendors Part 1 – The 2012 BBS Overall Brand Opinion League Table

Ranking Broadcast Technology Vendors Part 2 – The 2012 BBS Net Change of Overall Brand Opinion League Table

Ranking Broadcast Technology Vendors Part 3 — 2012 BBS Global Brand Opinion Leaders League Table. 

Last Year:  The 2011 BBS Broadcast Technology Vendor Innovation League Table

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© Devoncroft Partners. All Rights Reserved. Findings May Not Be Reproduced or Quoted Without Written Permission from Devoncroft Partners.

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Ranking Broadcast Technology Vendors Part 2 – The 2012 BBS Net Change of Overall Brand Opinion League Table

broadcast industry technology trends, broadcast technology market research, Broadcast Vendor Brand Research, market research, Top Broadcast Vendor Brands | Posted by Joe Zaller
Aug 24 2012

This is the fifth in a series of articles about some of the findings from the 2012 Big Broadcast Survey (BBS), a global study of broadcast industry trends, technology purchasing plans, and benchmarking of broadcast technology vendor brands. Nearly 10,000 broadcast professionals in 100+ countries took part in the 2012 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry.

 

In previous posts, I have discussed the most important broadcast industry trends of 2012, where money is being spent in the broadcast industry in 2012, and the overall opinion rankings of broadcast technology vendors in 2012.

Each year, as part of the Big Broadcast Survey (BBS), we ask a global sample of broadcast professionals to rank a variety of technology vendor brands on a wide range of metrics. We use these responses to create a series of reports, which through benchmarking and industry “league tables,” provides a view as to how each vendor is positioned in the market relative to the industry as a whole, as well as against their direct competitors.

This is the second in a series of posts about how broadcast technology vendors were ranked and benchmarked on a variety of metrics by the respondents to the 2012 BBS.

The first post in this series described the 2012 BBS Overall Brand Opinion League Table, which shows how 2012 BBS respondents ranked broadcast vendor brands.

While it’s positive for any vendor to achieve a good “overall opinion” ranking, this metric is somewhat one-sided because it relies solely on the positive opinions of respondents. In order to get a better understanding of how broadcast technology vendor brands are perceived, it is necessary to look at both the positive and negative opinions of brands, and to take into account how these opinions have changed over time.

This post looks at how the global sample of broadcast professionals who participated in the 2012 BBS ranked their net change of overall opinion of the 152 broadcast technology vendors we covered in the study. You can find a chart with the complete list of vendor brands covered in the 2012 BBS here.

 

How These Results Were Calculated

We first asked 2012 BBS respondents to rank their overall opinion of relevant brands (see brand opinion rankings here) on a scale of 1 -10 with 10 being the best in the market and 1 being the worst in the market.  We then asked respondents whether their opinion of these brands has changed over the last few years – specifically whether they feel their opinion of each brand has “improved,” “declined” or “stayed the same.”

This “change of opinion data” provides a more comprehensive view of how each brand is perceived by the market because it takes into account positive and negative perceptions.

No company is perfect, and the brands we measured in the 2012 BBS are no different.  All brands in the 2012 BBS study had both positive (got better) and negative (got worse) connotations associated with it, and there were also are significant percentage of respondents who said their opinion of a brand had “stayed the same.”

In order to derive a more meaningful metric, we use the “change of opinion” data to calculate the  Net Change in Overall Opinion for each brand by subtracting the percentage of respondents who said a brand “got worse” from the percentage of respondents who said their opinion of a brand had “got better,” while ignoring the “stayed the same” responses.

This metric shows the brands that are perceived as getting better, and which are in decline, on an overall basis.

The Net Change in Overall Opinion presents a more balanced view each brand because it takes into account both the positive and negative perceptions of brands, along with how these opinions have changed over time.

 

The Net Change in Overall Opinion findings from the 2012 BBS are shown below in two ways:

  • An overall industry “league table” that shows the 30 highest ranked vendors for the metric “Net Change of Overall Opinion.”  The data in this chart is broken out globally and regionally.

 

  •  An analysis of the “frequency” of appearance of each vendor in the Net Change of Overall Opinion league table

 

The top 30 ranked brands for Net Change of Overall Opinion are shown below for both the global sample of all respondents as well as for all respondents in each of the geographic regions.

Please note that inclusion of any brand in any cut of the data shown the tables in this article is dependent on available sample size.  The minimum sample size for inclusion in these charts is 30 respondents per cut of the data. Therefore it is possible that a highly regarded brand was excluded from these findings based on sample size.

 

In all cases, these results are shown in alphabetical order, NOT in the order in which they were ranked by respondents to the study.


The 2012 BBS Net Change in Overall Opinion League Table:

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A total of 58 broadcast technology vendor brands are included in this table (up from 51 in 2011), illustrating the geographic variation of opinion. Analysis of these results shows that are some clear market leaders on a global basis, while others are strong on a regional basis.

It’s useful to understand how often each brand appears in the 2012 BBS Net Change in Overall Opinion League Table.

This is shown below, along with the equivalent data from the 2011 BBS for comparison.

 

Frequency of appearance of brands in the 2012 BBS Net Change in Overall Opinion League Table:

  • 9 brands appear four times (compared to 13 brands in 2011), meaning they were ranked in the top 30 globally and in each geographic region

 

  • 12 brands appear three times (compared to 10 brands in 2011)

 

  • 11 brands appear two times (compared to 9 brands in 2011)

 

  • 26 brands appeared one time (compared to 19 brands in 2011).  This illustrates a fragmentation of opinion  about many brands based on geography

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Brands appearing four times in the 2012 BBS Net Change of Overall Opinion League Table:

 

  • 2012 BBS: Adobe, Avid, Blackmagic Design, Canon, Harmonic, Panasonic, Riedel, Sennheiser, Sony

 

  • 2011 BBS: Adobe, Aja Video, Apple, Blackmagic Design, Canon, Cisco, Genelec, Omneon, Panasonic, Riedel, Sennheiser, Sony, Tektronix

 

 

Brands appearing three times in the 2012 BBS Net Change of Overall Opinion League Table:

  • 2012 BBS: Aja Video, Apple, Autodesk, Digital Rapids, EVS, Front Porch Digital, NewTek, Omneon, Phabrix, Rhozet, Ross Video, Vizrt

 

  • 2011 BBS: Ateme,  Evertz, EVS, Harmonic, Net Insight, Rhozet, Rohde & Schwarz, Ross Video, Shure, Vizrt

 

 

Brands appearing two times in the 2012 BBS Net Change of Overall Opinion League Table:

 

  • 2012 BBS: AmberFin, ateme, brightcove, Cisco, Gigawave, Net Insight, Rohde & Schwarz, Screen Service, Tektronix, Telecast, Wohler

 

  • 2011 BBS: AKG, Digital Rapids, Dolby, Ensemble,  Front Porch Digital, Lawo, Telestream, TVIPS, Wohler

 

 

Brands appearing once in the 2012 BBS Net Change of Overall Opinion League Table:

  • 2012 BBS: Aspera, Axon, Calrec, Clear-Com, Dolby, Elemental Technologies, Ensemble, Envivio, Evertz, Genelec, Harris, Isilon Systems / EMC, Kaltura, Kit Digital, Lawo, Neumann, PubliTronic / Grass Valley, RTW, Schoeps, Shure, Snell, Telestream, Wheatstone, Wide Orbit, Wowza, Yamaha

 

  • 2011 BBS: AmberFin, Audio-Technica, Avid, Fujinon, Grass Valley, Harris, Inlet Technologies, Linear, Linear Acoustic, Miranda, MSA Focus, Nevion, Playbox, PubliTronic, Schoeps, Screen Service, Solid State Logic, Telecast, Yamaha

 

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Frequency Analysis of the Brands in the in the 2012 BBS Net Change of Overall Opinion League Table:  

In order to provide a better understanding of which brands were most highly ranked in each geographic region, the data has been provided in the table below, which shows the global and regional performance for each brand in the top 30 ranking of overall opinion.

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Frequency Analysis of Brands in the 2012 BBS Net Change of Overall Opinion League Table: 

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This frequency analysis chart shows that there are some interesting geographic variations in the data. Here’s a closer look at how brands appeared by geography:

 

Appearing only in the global ranking of the 2012 BBS Net Change of Overall Opinion League Table

Seven brands achieved a top 30 ranking in the 2012 BBS Net Change of Overall Opinion league table, despite not being listed in the top 30 of any of the three geographic regions.  This may be a function of sample size.  As discussed above, there is a minimum sample size requirement for inclusion in each cut of the data presented in these chart, and the global ranking, by definition, has the largest overall sample.

  • brightcove, Elemental Technologies, Kaltura, KIT Digital, Lawo, Wide Orbit, Wowza

 

Appearing only in one region of the 2012 BBS Net Change of Overall Opinion League Table

The following 21 brands appear in one regional category of the 2012 BBS Net Change of Overall Opinion League Table, but do not appear in the global ranking:

  • Aspera, Axon, Calrec, Clear-Com, Dolby, Ensemble, Envivio, Evertz, Genelec, Harris, Isilon Systems / EMC, Neumann, PubliTronic / Grass Valley, RTW, Schoeps, Shure, Snell, Telestream, Wheatstone, Yamaha

 

Appearing only in the EMEA region in the 2012 BBS Net Change of Overall Opinion League Table

  • Calrec, Isilon Systems / EMC, Neumann, PubliTronic / Grass Valley, RTW, Schoeps, Snell,

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Appearing only in the Asia-Pacific region in the 2012 BBS Net Change of Overall Opinion League Table

  • Axon, Clear-Com, Dolby, Envivio, Evertz, Genelec, Harris, Shure, Yamaha

 

Appearing only in the Americas region in the 2012 BBS Net Change of Overall Opinion League Table

  • Aspera, Ensemble, Evertz, Telestream, Wheatstone,

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Please keep the following in mind when reviewing this information: All data these charts are presented in alphabetical order, not in the order brands were ranked by respondents to the 2012 BBS. All data in this article measures the responses of all non-vendor participants in the 2012 BBS, regardless of organization type, organization size, job title, geographic location, or purchasing authority — responses based on individual organization types or geographic locations may be very different from the results shown in this article.  There is a minimum sample size requirement for any brand to be included in any cut of the data presented in this article. There were a total of 152 brands covered in the 2012 BBS, for a complete list please click here. Granular analysis of these results is available as part of various paid-for reports based on the 2012 BBS data set. For more information about this report, please contact Devoncroft Partners.

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Devoncroft Partners has published a variety of reports from 2012 BBS data.  For more information, please get in touch.

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Related Content:

The 2012 Big Broadcast Survey – Information and available reports

The 2012 BBS Broadcast Industry Global Trend Index

Tracking the Evolution of Broadcast Industry Trends 2009 – 2012

Analyzing Where is Money Being Spent in the Broadcast Industry – The 2012 BBS Broadcast Industry Global Project Index

Ranking Broadcast Technology Vendors Part 1 – The 2012 BBS Overall Brand Opinion League Table

Last Year’s Net Change of Overall Opinion Rankings: Ranking Broadcast Technology Vendors Part 2 – the 2011 BBS Net Change in Overall Brand Opinion League Table

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Vizrt Revenue Declines 6 Percent in Q2 2012 Due to Weakness in EMEA

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Aug 10 2012

Vizrt reported that its revenue for the second quarter of 2012 was $30.15m, a decline of 6% versus the same period a year ago, and a decline of 5% versus the previous quarter.

The net loss for the second quarter of 2012 was $4.4m, compared to a net profit of $4.5m last year, and a net profit of $2.1m last quarter.  The loss in the quarter includes a non-cash impairment charge of $7.8m relating to the 1998 purchase of Escenic.

On an operating basis, the company posted a profit of $3.9m, down 24% from last year, and down 3% versus last quarter.  

EBITDA for the second quarter of 2012 was $5.4m, down 15% versus last year and a down 2% versus last quarter.   The EBITDA margin for the quarter was 18% versus 20% last year and 18% last year.

The results are slightly above the high end of the range the company provided in a profit warning in early July 2012.  At that time Vizrt management estimated that its revenues for the second quarter 2012 would be in the range of $28m to $30m, and that EBITDA for Q2 and the full year 2012 would be impacted.

Gross margins for the second quarter of 2012 were 66%, flat with last year and down from 67% last quarter. 

Operating expenses for the quarter were $15.9m, essentially flat with last year, despite the  fact that the company has added 22 employees since last year, primarily as a result of the purchase of LiberoVision in Q3 2011.  Operating expenses were down 7% versus the previous quarter

According to Vizrt CEO Martin Burkhalter, “In times of uncertainty, OPEX control becomes an important operational focus.  Our discipline has allowed us to protect margins and continue with the healthy cash generation, even though we have continued to invest in R&D.”

The order backlog at the end of the quarter was $48.5m, down 3% versus the same period a year ago, and down 3% versus last quarter.

The company ended the second quarter of 2012 with 582 employees and $69.6m in cash.

 

Product Line Results for the Quarter:

  • Broadcast Graphics (BG) revenue in the quarter was $23m (76% of total revenue), down 4% versus last year and down 8% versus last quarter.  The BG order backlog was $26.5m, down 3% versus last year, and up 6% versus last quarter.

 

  • Media Asset Management (MAM) revenue in the quarter was $5.4m (18% of total revenue), down 10% versus the same period a year ago, and up 4% versus last quarter. The MAM order backlog was $18, up 9% versus the same period a year ago, and down 14% versus last quarter.

 

  • Online & Mobile (OLM) revenue in the quarter was $1.7m (6% of total revenue), down 22% versus last year and up 9% versus last quarter.  The OLM order backlog was $4m, down 32% versus last year, and up 2% versus last quarter.

 

 

Geographic Performance for the Quarter:

  • Revenue from EMEA was $14.9m (49% of total revenue), down 17% versus both last year and last quarter. The company said that the EMEA region is suffering from economic uncertainties.

 

  • Americas revenue was $7.3m (24% of total revenue), up 7% versus last year, and up 4% versus last quarter

 

  • APAC revenue was $7.9 (26% of total revenue), up 7% versus last year, and up 17% versus last quarter.  The company said revenue growth in APAC was solid, despite being affected by a weak performance in India, which is suffering from adverse currency effects of the Rupee vs. the US-Dollar, as well as other economic issues.

 

 

Results for first half of 2012

Vizrt’s revenue for the first six months of 2012 was $61.9m, up 3% versus the first half of 2011.  The net loss for the first half of the year was $2.2m, versus net profit of %6.6m for the first half of 2011.  The net loss in the first half of the year was due to the non-cash impairment charge of $7.8m relating to the 1998 purchase of Escenic.

EBITDA for the first half of 2012 was $11m, up 6% verus the same period last year.  The EBITDA margin was 18%, % compared to 17% last year.

Gross margins for the first half of the year were 66%, up from 64% in H1 2011.

Operating expenses for the first six months were $33.1m, up 6% versus last year.

 

Business Outlook:

Last quarter, the company reiterated its earlier guidance of 13% revenue growth and improving margins based on a strengthening outlook. This changed in July 2012, when the company issued a profit warning. 

Burkhalter issued a cautions statement about the company’s prospects for the remainder of 2012.

”As we announced in our July 3 press release, our revenues were impacted by the rearing up of the economic uncertainties, predominantly in EMEA and the Americas. Events in the Eurozone, as well as the uncertain outlook of the US economy, which appears to be recovering more slowly than expected, have again started to dominate the investment outlook of the media industry.  Though none of the running projects have been cancelled or delayed, we experienced a noticeable cutback in both new tenders and orders.”

“Considering the impact of economic uncertainties on the business climate, it is too early to provide accurate quantitative guidance for the remainder of this year. As we shared in our press release of July 03, we anticipate that we will not be able to match the guidance for the full year that we published previously, as we do not expect that market conditions will improve materially during the second half of the year.  However, assuming the business climate does not deteriorate significantly from its current state, we expect that our strict control of OPEX will allow us to maintain our margins roughly at the current levels.  Going forward, we will continue on a path of financial prudence and discipline, while at the same time working on further improving our offering to the broadcast and general media industries, who continue to look for technology that will help them reach their financial goals and strategic objectives.  As we are in very robust financial health, we are in a position where we can continue to develop our leadership in the digital media industry, which is a great position to be in and one that gets recognized by the market.”

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Related Content:

Press Release: Vizrt Reports H1 and Q2 2012 Results – Margins protected despite lower than expected Q2 revenues

Vizrt Warns of Lower Revenue Expectations for 2012 Due to Weakness in EMEA and Americas

Vizrt  Q2 2012 Analyst Presentation  http://dcft.co/O81uC9

Previous Quarter: Vizrt Revenue Increases 13% in Q1 2012 Driven by Strong Performance in Graphics and MAM

Previous Year: Vizrt Q2 2011 Profit Triples as Revenue Jumps 32 Percent

More Broadcast Vendor M&A: Vizrt Completes Acquisition of LiberoVision

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Vizrt Warns of Lower Revenue Expectations for 2012 Due to Weakness in EMEA and Americas

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Jul 03 2012

Broadcast graphics and media asset management specialist Vizrt said its revenue for the full year 2012 will be less than previously projected, due to lower than anticipated results in the past three months, especially in EMEA and the Americas.

The company attributed the recent sales decline to market conditions in the Americas and EMEA that “seem to have deteriorated as a result of the continued economic uncertainties.” The company said that as a result of greater economic uncertainty, customers in these territories are making purchasing decisions more slowly and in some case are postponing of larger projects.

Vizrt is now estimating revenues for the second quarter 2012 to be in the range of $28m to $30m, a decline of 7% – 13% versus the $32.1m achieved in Q2 2011. As a result, the company also expects EBITDA for Q2 and the full year 2012 to be impacted.

At the time of the company’s most recent earnings release in May of 2012, Vizrt CEO Martin Burkhalter issued a cautiously optimistic statement about the company’s outlook for 2012. “We have witnessed no material change in the business climate other than that we sense that businesses have gotten used to and seem less affected by uncertainty, which has been the overriding sentiment these past few quarters, and as a result are less retracted in their investment outlook. Accordingly our level of comfort regarding the short to mid-term outlook has strengthened. Based on the general climate, several large upcoming events, the relevance of our product offering and the strength of our organization to convert opportunities into actual sales, we reiterate our earlier guidance of 13% revenue growth and improving margins.”

Today the company revised this guidance saying “Unless market conditions will improve during the rest of the year, the company believes that the earlier communicated revenue growth target of 13% for 2012 will have to be adjusted.”

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Related Content:

Press release: Vizrt Provides Outlook Update

Vizrt Revenue Increases 13% in Q1 2012 Driven by Strong Performance in Graphics and MAM

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Vizrt Revenue Increases 13% in Q1 2012 Driven by Strong Performance in Graphics and MAM

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
May 10 2012

Vizrt reported that its revenue for the first quarter of 2012 was $31.7m, an increase of 13% versus the same period a year ago, and down 5% versus the previous quarter.  

In its earnings announcement, the company pointed out that the first quarter is typically lower than Q4 (which was a record for Vizrt), but  reiterated its previously issued guidance of 13% revenue growth and improving margins for the full year 2012.

Gross margins for the first quarter of 2012 were 67%, up from 62% last year and down from 69% last quarter.  The company attributed the stronger gross margin performance to improved margins from its Media Asset Management (MAM) product line. Vizrt disclosed that its MAM order book is now 80% higher than it was at the same time last year.

Operating expenses for the quarter were $17.1m, up 13% versus last year due to increased headcount and the acquisition of LiberoVision last July.

EBITDA was $5.6m for the quarter, an increase of 40% versus last year and a decrease of 37% versus last quarter.   The EBITDA margin for the quarter was 18% versus and EBITDA margin of 14% last year.

Net profit for the quarter was $2.1m, flat with the same period a year ago, and down from $6m last quarter.

Product Line Results for the Quarter:

  • Broadcast Graphics (BG) accounted for $24.9m during the quarter (79% of total revenue), an increase of 24% versus last year and a decline of 7% versus last quarter.  The BG order backlog was $25m as of May 8, 2012, up 8% versus last year.
  • Media Asset Management (MAM) revenue in the quarter was $5.2m (16% of total revenue), up 8% versus the same period a year ago, and up 13% versus last quarter. The MAM order backlog was $21m as of May 8, 2012, up 80% versus last year.
  • Online & Mobile (OLM) revenue in the quarter was $1.6m (5% of total revenue), down 38% versus last year and down 12% versus last quarter.  The OLM order backlog was $4m as of May 8, 2012, down 19% versus last year.

 

Geographic Performance for the Quarter:

  • Revenue from EMEA was $17.9m (56% of total revenue), up 20% versus the same period last year and down 4% versus last quarter
  • Americas revenue was $7.1m (22% of total revenue), up 9% versus last year, and down 9% versus last quarter
  • APAC revenue was $7.1 (20% of total revenue), up 2% versus last year, and down 6% versus last quarter

 

The company ended the quarter with 583 employees and $68.6m in cash.

Company CEO Martin Burkhalter said he was pleased with the results, which were in line with the company’s expectations. Burkhalter said that although Q1 is traditionally the weakest quarter of the year, Vizrt managed to record strong improvements, both for revenues and operating results.

 

Business Outlook:

“We have witnessed no material change in the business climate other than that we sense that businesses have gotten used to and seem less affected by uncertainty, which has been the overriding sentiment these past few quarters, and as a result are less retracted in their investment outlook,” said Burkhalter.

“Accordingly our level of comfort regarding the short to mid-term outlook has strengthened. Based on the general climate, several large upcoming events, the relevance of our product offering and the strength of our organization to convert opportunities into actual sales, we reiterate our earlier guidance of 13% revenue growth and improving margins.”

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Related Content:

Press Release: VIZRT Reports Q1 2012 Results – Positive Start to the Year

Vizrt  Q1 2012 Analyst Presentation

Previous year: Vizrt Revenue Up 18 Percent in Q1 2011, CEO Says Company Has Entered Phase of Strong and Stable Growth

Previous Quarter: Vizrt Reports Record Revenue in 2011, Targets 13 Percent Growth in 2012

More Broadcast Vendor M&A: Vizrt Completes Acquisition of LiberoVision

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