Welcome!

News Feed Item

Espial Reports Fourth Quarter Results

OTTAWA, Feb. 26, 2014 /CNW/ - February 26, 2014 - Espial® Group Inc. ("Espial" or the "Company"), (TSX: ESP), a leader in the delivery of on-demand TV software and services, today announced its fourth quarter and fiscal year financial results for the three and twelve month periods ended December 31, 2013.

Espial Q4 Highlights

  • Announced a major Tier 1 North American cable operator win for Espial's RDK and HTML5 user experience (UX) solutions.
  • Launched new on demand-services with Telenor owned Canal Digital Kabel, Norway's largest cable operator.
  • Announced a reseller deal for the Espial TV Browser with a leading, global Smart TV chipset manufacturer who started shipments with 2 new major Smart TV consumer electronic brands.
  • Q4 revenue increased 44% to $3.9 million from $2.7 million last year.
  • Q4 EBITDA increased to income of $0.6 million from a loss of $0.9 million last year.

"We had a strong Q4 and a good finish to 2013. In 2013, we continued to invest in innovating around our RDK software and HTML5 user experience solutions" said Jaison Dolvane, CEO, Espial. "We announced a major cable operator win in Q4 2013 and continued to grab the attention of some of the world's largest cable operators with our sales and marketing efforts. Cable operators need open, cloud-based service platforms, using HTML5, to enable rapid service innovation and compete effectively against new, more nimble Internet competitors. As we move into 2014, we do so with a strong product portfolio, continued R&D innovation and a solid sales pipeline."

Fourth Quarter Financial Summary

For the three-month period ended December 31, 2013, the Company reported revenues of $3.9 million compared to revenues of $2.7 million for the three months ended December 31, 2012. Earnings before interest, foreign exchange, taxes, stock compensation, depreciation and amortization (EBITDA) for the fourth quarter of fiscal 2013 was income of $0.6 million, compared to a loss of $0.9 million in the fourth quarter of fiscal 2012. Net income, which includes non-cash items like depreciation, stock compensation and amortization of intangibles, for the quarter was $0.1 million or $0.01 per share, compared to a net loss of $1.3 million last year, or $0.09 per share.

Q4 Financial Results

  • Fourth quarter revenues were $3,902,541 compared with revenues of $2,716,779 in the same period a year ago. Fourth quarter software license and royalty revenues were $2,482,863 compared to $1,517,179 in the fourth quarter of fiscal 2012. Professional services for the fourth quarters of 2013 and 2012 were $328,477 and $221,607 respectively. Maintenance and support revenues for the fourth quarter were $1,091,201 compared to $977,992 last year.

  • North American revenues were $1,717,493 in the fourth quarter of 2013 compared to $838,661 in 2012. Asia revenues were $892,517 in the fourth quarter of 2013 compared to $563,747 in 2012. European revenues were $1,292,531 in the fourth quarter of 2013 compared to $1,314,391 in 2012

  • Gross margin for the fourth quarter of fiscal 2013 was 81% compared with 71% in the fourth quarter of fiscal 2012.

  • Operating expenses in the fourth quarter of fiscal 2013 were $2,845,056 compared to $3,211,461 in the fourth quarter of fiscal 2012.

  • Earnings before interest, foreign exchange, taxes, stock compensation, depreciation and amortization (EBITDA) for the fourth quarter of fiscal 2013 was income of $576,690 compared to a loss of $910,636 in fiscal 2012.

  • Net income, which includes non-cash items like depreciation, goodwill and intangibles, in the fourth quarter was $148,944 compared to a loss of $1,273,082 last year.

Fiscal 2013 Financial Results

  • Total revenues for the fiscal year ended December 31, 2013 were $12,549,412 compared with revenues of $13,280,518, in the same period a year ago. Software license and royalty revenues for the 2013 fiscal year were $7,031,332 compared to $7,536,633 in fiscal 2012. Professional services for the fiscal years of 2013 and 2012 were $1,315,749 and $2,201,640 respectively. Maintenance and support revenues for the fiscal year ended December 31, 2013 were $4,202,331 compared to $3,542,244 last year.

  • North American revenues were $4,262,957 in the 2013 fiscal year compared to $2,833,563 in 2012. Asia revenues were $4,125,156 in the 2013 fiscal year compared to $2,524,494 in 2012. European revenues were $4,161,299 in the 2013 fiscal year compared to $7,922,460 in 2012.

  • Gross margin for the 2013 fiscal year was 82% compared with 78% in fiscal 2012.

  • Operating expenses for the 2013 fiscal year were $14,668,472 compared to $12,539,180 in fiscal 2012. Included in the fiscal 2013 year operating expenses is a restructuring charge and integrations costs related to the acquisition of ANT

  • Earnings before interest, foreign exchange, taxes, stock compensation, depreciation and amortization (EBITDA) for the fiscal year ended December 31, 2013 was a loss of $2,960,261 compared to a loss of $747,962 in fiscal 2012.

  • Net loss in the 2013 fiscal year was $5,529,425 compared to a loss of $2,707,139 in 2012.

Cash, restricted cash and cash equivalents on December 31, 2013, was $7,407,093.

A complete set of financial statements and management's discussion and analysis for the period ended December 31, 2013, will be available at http://www.sedar.com.

Conference Call

The Company will be hosting a conference call to discuss the Q4 and fiscal year 2013 financial results on February 27, 2014 at 10:00 a.m. Eastern Time (ET). The phone number to join the results discussion is:

  • Toll free line (Canada/US) - +1 888-390-0605
  • Toll line (international/local) - +1 416-764-8609

The playback for the call will be available until 11:59pm EST on March 25, 2014, at the following numbers and passcode:

  • Toll line: +1 416-764-8677, Passcode: 657861
  • Toll-free line: +1-888-390-0541, Passcode: 657861

About Espial (www.espial.com)

Espial is a leading supplier of digital TV and IPTV software and solutions to cable MSOs and telecommunications operators as well as consumer electronics manufacturers. Espial's middleware, video-on-demand, and browser products power a diverse range of pay-TV and Internet TV business models. Over 35 million licenses of its patented software are in use across the world. Espial is headquartered in Ottawa, Canada and has offices in the United States, Europe, and Asia. Visit www.espial.com or contact via phone at +1 613 230 4770.

Forward Looking Statement

This press release contains information that is forward looking information with respect to Espial within the meaning of Section 138.4(9) of the Ontario Securities Act (forward looking statements) and other applicable securities laws. In some cases, forward-looking information can be identified by the use of terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or the negative of these terms or other similar expressions concerning matters that are not historical facts. In particular, statements or assumptions about, , economic conditions, benefits of new customer and partner relationships, future opportunities for the company and products and any other statements regarding Espial's objectives (and strategies to achieve such objectives), future expectations, beliefs, goals or prospects are or involve forward-looking information.

Forward-looking information is based on certain factors and assumptions. While the company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward-looking information, by its nature necessarily involves known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from those in the forward-looking statements or could cause our current objectives and strategies to change, including but not limited to changing conditions and other risks associated with the on-demand TV software industry and the market segments in which Espial operates, competition, Espial's ability to effectively develop its distribution channels and generate increased demand for its products, economic conditions, technological change, unanticipated changes in our costs, regulatory changes, litigation, the emergence of new opportunities, many of which are beyond our control and current expectation or knowledge.

Additional risks and uncertainties affecting Espial can be found in Management's Discussion and Analysis of Results of Operations and Financial Condition for the fiscal year ended December 31, 2012 and 2013 filed on SEDAR at www.sedar.com. If any of these risks or uncertainties were to materialize, or if the factors and assumptions underlying the forward-looking information were to prove incorrect, actual results could vary materially from those that are expressed or implied by the forward-looking information contained herein and our current objectives or strategies may change. Espial assumes no obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.

Non-IFRS Financial Measures

Earnings before interest, foreign exchange, taxes, stock compensation, depreciation and amortization (EBITDA) is a non-IFRS financial measure that does not have any prescribed meaning by IFRS and is therefore unlikely to be comparable to similar measures presented by other issuers. Management believes that this non-IFRS financial measure, when taken together with the corresponding consolidated IFRS measures, increases the transparency of the Company's current results and enables investors to more fully understand trends in its current and future performance. A reconciliation of net loss to earnings before interest, foreign exchange, taxes, stock compensation, dividends on redeemable preferred shares, depreciation and amortization is as follows:

  December 31,
2013
  December 31,
2012
  December 31,
2013
  December 31,
2012
  (3 months)   (3 months)   (12 months)   (12 months)
  (unaudited)   (unaudited)   (unaudited)   (unaudited)
               
Net loss and Comprehensive loss $ 148,943   ($1,273,082)   ($ 5,529,421   ($2,707,139)
Add              
  Stock compensation 36,751   37,732   143,969   141,488
    Depreciation of property and equipment 59,569   60,743   212,158   207,919
Amortization of intangibles 161,460   288,196   1,101,885   1,146,573
  406,723   (886,411)   (4,071,413)   (1,211,159)
Less (add)              
Net interest income (expense) (147,836)   (125,068)   (547,024)   (469,481)
Foreign exchange gain (loss) 33,241   149,293   (277,641)   6,284
Income tax (55,371)   -   (286,483)   -
Earnings before interest, foreign exchange, taxes, stock compensation, depreciation and amortization $ 576,689   ($910,636)   ($ 2,960,261)   ($747,962)


Q4 Consolidated Statements of Income (Loss)

    Three months ended
December 31, 2013
  Three months ended
December 31, 2012
  (Unaudited)   (Unaudited)
Revenue          
  Software $ 2,482,863   $ 1,517,179
  Professional services   328,477     221,607
  Support and maintenance   1,091,201     977,992
Total Revenue   3,902,541     2,716,779
Cost of revenue   738,575     802,624
Gross margin   3,163,966     1,914,155
Expenses          
  Sales and marketing   710,362     978,995
  General and administrative   394,635     360,878
  Research and development   1,578,599     1,583,393
Business restructuring charges   -     -
  Amortization of Intangible assets   161,460     288,196
    2,845,056     3,211,462
Loss before other expense   318,910     (1,297,307)
  Interest income   3,360     14,328
  Foreign exchange gain   33,241     149,293
  Interest expense   (151,196)     (139,396)
Income (loss) before tax   204,315     (1,273,082)
  Taxes   (55,371)     -
Net income (loss) $ 148,944   $ (1,273,082)


Consolidated Balance Sheets

  December 31,
2013
(unaudited)
  December 31,
2012
(unaudited)
           
CURRENT ASSETS          
  Cash and cash equivalents $ 7,407,093   $ 3,055,644
  Restricted cash   -     8,164,551
  Accounts receivable   2,057,222     1,758,089
  Investment tax credits receivable   312,027     300,000
  Prepaid expenses and other assets   502,990     212,722
    10,279,332     13,491,006
           
Equipment   539,348     609,088
Intangible assets   2,099,398     1,032,409
Goodwill   3,340,808     3,340,808
  $ 16,258,886   $ 18,473,311
           
CURRENT LIABILITIES          
  Operating line $ -   $ 3,010,192
  Accounts payable and accrued liabilities   1,872,505     1,869,932
  Provisions   281,813     -
  Deferred revenue   4,052,700     1,327,484
  Term Debt   2,442,056     -
    8,649,074     6,207,608
Term debt   -     3,256,604
Provisions   363,132     -
Total Liabilities   9,012,206     9,464,212
           
COMMITMENTS          
SHAREHOLDERS' EQUITY          
  Share capital   77,781,292     74,861,877
  Warrants   1,436,004     732,382
  Share based payments reserve   12,125,080     11,981,111
  Deficit   (84,095,696)     (78,566,271)
      7,246,680     9,009,099
    $ 16,258,886   $ 18,473,311

 

SOURCE ESPIAL GROUP

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
We are always online. We access our data, our finances, work, and various services on the Internet. But we live in a congested world of information in which the roads were built two decades ago. The quest for better, faster Internet routing has been around for a decade, but nobody solved this problem. We’ve seen band aid approaches like CDNs that attack a niche's slice of static content part of the Internet, but that’s it. It does not address the dynamic services-based Internet of today. It doe...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
While DevOps promises a better and tighter integration among an organization’s development and operation teams and transforms an application life cycle into a continual deployment, Chef and Azure together provides a speedy, cost-effective and highly scalable vehicle for realizing the business values of this transformation. In his session at @DevOpsSummit at 19th Cloud Expo, Yung Chou, a Technology Evangelist at Microsoft, will present a unique opportunity to witness how Chef and Azure work tog...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
Between the mockups and specs produced by analysts, and resulting applications built by developers, there exists a gulf where projects fail, costs spiral, and applications disappoint. Methodologies like Agile attempt to address this with intensified communication, with partial success but many limitations. In his session at @DevOpsSummit at 19th Cloud Expo, Charles Kendrick, CTO at Isomorphic Software, will present a revolutionary model enabled by new technologies. Learn how business and deve...
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Although it has gained significant traction in the consumer space, IoT is still in the early stages of adoption in enterprises environments. However, many companies are working on initiatives like Industry 4.0 that includes IoT as one of the key disruptive technologies expected to reshape businesses of tomorrow. The key challenges will be availability, robustness and reliability of networks that connect devices in a business environment. Software Defined Wide Area Network (SD-WAN) is expected to...
Developing software for the Internet of Things (IoT) comes with its own set of challenges. Security, privacy, and unified standards are a few key issues. In addition, each IoT product is comprised of (at least) three separate application components: the software embedded in the device, the back-end service, and the mobile application for the end user’s controls. Each component is developed by a different team, using different technologies and practices, and deployed to a different stack/target –...
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Enterprises have forever faced challenges surrounding the sharing of their intellectual property. Emerging cloud adoption has made it more compelling for enterprises to digitize their content, making them available over a wide variety of devices across the Internet. In his session at 19th Cloud Expo, Santosh Ahuja, Director of Architecture at Impiger Technologies, will introduce various mechanisms provided by cloud service providers today to manage and share digital content in a secure manner....
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...