Tech Vendor Earnings Reports: Chyron, Evertz, Vitec’s Videocom and Bexel
Broadcast graphics specialist Chyron reported that its revenue for the fourth quarter of 2011 was $8.1m, up 15% versus the same period a year ago, and up 7% versus the previous quarter. Revenue from the Americas was up 18% versus last year, driven by stronger sales in Canada and Latin America.
The company posted a net loss of $400,000 for the quarter, compared to a net loss of $630,000 during the same period a year ago, and a loss of $3.5m last quarter. The company’s operating loss for the third quarter of 2011 was $430,000 compared to an operating loss of $630,000 last year, and an operating loss of $870,000 last quarter. Gross margins for the quarter were 71%, up from 68% during the fourth quarter of last year, and up from 69% last quarter.
For the full year 2011, the company’s revenue was $31.6m, up 14% versus 2010. Revenue from the Americas was $26.28m for the year, or 83% of total revenue for the year. Revenue in the Americas was up 18% versus 2010. The net loss for the full year 2011 was $4.2m versus a net loss of $2.4m in 2010.
Full year revenue from services was $7.7m, or 24% of total revenue for the year. This represents an increase of 23% versus 2010. Product revenue for the year was $23.9m, an increase of 11% versus 2010. Chyron finished the year with $4.2m in cash, and no long-term debt.
Evertz announced that its revenue for the third quarter of its 2012 fiscal year was C$71.4m, a decline of 15% versus the same period a year ago, and up 1% versus the previous quarter. Net earnings for the quarter were C$12.7m (C$0.17 per share), down 48% versus the same quarter last year. The results for the quarter were below the expectations of equity analysts, who on average were looking for revenue of C$78.8m and EPS of C$0.24.
Revenue in the US/Canada region was C$32m, or 45% of total revenue, down 19% versus the same period a year ago, and down 11% versus the previous quarter. International revenue was C$39.4m, an increase of 11% versus last year, and an increase of 14% versus last quarter. Evertz EVP Brian Campbell attributed the international growth to the ongoing worldwide transition to HDTV operations, the rebound in some international markets, and the company’s ability to “refocus its resources” where needed thanks to its flexible sales structure.
Gross margins in the quarter were 56.2%, down from 58% last year and down from 57.3% last quarter. The company attributed the decline in gross margins to a different geographic and product mix in the quarter, particularly the lower sales performance in the US market where margins for some products are higher.
Revenue for the first nine months of fiscal 2012 was C$217m, down 10% versus last year. Year-to-date US and Canada revenue was C$113.2m, down 14% versus the previous year. Year-to-date revenue in the international region was C$103.9m, down 5% versus the previous year. Gross margins for the first nine months of the year were 57%, down from 58% last year, but still within what the company’s targeted range.
The company said that it expect its revenue for the second half of the current half of the fiscal year to exceed the first half of the year, and that it should grow faster than the overall market over the next several years. Campbell said that Evertz is entering the fourth quarter and the upconing NAB trade show with strong momentum.
UK-based Vitec Plc, which owns a dozen companies in the broadcast industry, announced that recorded pre-tax profit of £33m on revenue for the full year 2011 was £351m.
Revenue for the company’s Videocom division was £136.2m in 2011, up 12% versus 2010. Revenue grew 18.4% on an organic basis after adjusting for the acquisition of antennae specialist Haigh-Farr and the disposal of Clear-Com in the prior year. Operating profit for the year was £12.7m, up 51.2% or 31.0% in organic constant currency terms.
The company said that sales of camera supports, prompters and bags products grew strongly in 2011, as did the newly introduced Sachtler Ace range of supports. The continued adoption of LED lighting technology by major US, European, and Asian broadcasters was a strong driver for the company’s Litepanels business, which grew by approximately 20% in 2011. Anton/Bauer business grew strongly in 2011 driven by sales of batteries and chargers for traditional broadcast and film users, as well as the burgeoning hospital market. The IMT microwave systems business continued to win business in the broadcast market internationally and its sales were up in the sports and entertainment segment in the US.
2011 revenue from Bexel, Vitec’s Services Division, was £31.6m, down 7.9% versus 2010, when the Winter Olympics were a strong revenue driver for Bexel. Operating profit for the year was £600,000, up from £400,000 in 2010 and included higher asset sales including one-off revenue and profits from the sale of a large system to a major customer.
Vitec undertook a reorganization of Bexel in 2011, which included the closure of the Seattle branch office, the consolidation of engineering and logistics resources, and the establishment of a national sales team in the US to focus on key accounts. The company says these changes will help Bexel to focus on large events such as major sporting and entertainment events, and to better serve of US and international clients. According to Vitec, Bexel also strengthened its relationship with ESPN during 2011 and is prepared for the 2012 Olympics in London.