Chyron: Profits up
Chyron’s ChyTV product line helped spur on revenue gains as well as porfitability for the fourth quarter and full year of 2005.
Revenue for the year ended December 31, 2005, was $25.1 million, eight
percent higher than the previous year’s $23.2 million, and included
revenue of $0.5 million from the Company’s new ChyTV product line. Net
income for the year was $706,000, or $0.02 per share, despite a
$888,000 operating loss attributable to the new ChyTV product line. Net
income for 2005 represents a 131 percent increase over the prior year’s
net income of $305,000, or $0.01 per share, which included a gain of
$224,000 on the sale of equity securities and the receipt of a
contingent payment of $96,000 relating to the sale of land in 2003.
Revenue for the fourth quarter ended December 31, 2005, was $6.8
million, including $0.3 million from ChyTV, with net income of $695,000
or $0.02 per share, including a $105,000 operating loss from the ChyTV
product line. This compares to revenue of $6.33 million and net income
of $97,000, or $0.00 per share, for the fourth quarter of 2004.
Michael Wellesley-Wesley, Chyron President and C.E.O., commented:
“Chyron’s 2005 profits performance completes the base building stage of
the turnaround strategy we have pursued since early 2004. Solid revenue
gains in our broadcast graphics business segment coupled with an
expanding gross margin and continued tight expense controls resulted in
the highest quarterly and annual operating profit in several years.”
“Fourth quarter revenues from our new ChyTV business unit,
although small in relation to our broadcast graphics revenues, were up
158% over third quarter ChyTV revenues and I remain optimistic for
ChyTV’s growth prospects in 2006 and beyond. I view 2005 as a year in
which we have put in place strong foundations for future growth. We
have invested in the development of new graphics systems for our
broadcast customers as well as building our new ChyTV business from
scratch,” added Mr. Wellesley-Wesley.
Gross margins improved to 62 percent for 2005 as compared to 58
percent for 2004. Operating profit improved to $0.8 million for 2005,
despite the $0.9 million ChyTV operating loss, versus operating profit
of $0.1 million for 2004. Operating profit improved to $0.7 million for
the fourth quarter of 2005, from an operating loss of $0.1 million for
fourth quarter of 2004.
Interest expense improved to $219,000 for 2005 from $441,000 for
2004 due to lower debt levels and interest rates in 2005. Interest
expense improved to $52,000 for fourth quarter 2005 from $98,000 for
the comparable prior year’s quarter.