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
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, discussed how given the magnitude of today's application ...
Sanjeev Sharma Joins June 5-7, 2018 @DevOpsSummit at @Cloud Expo New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
Digital Transformation (DX) is not a "one-size-fits all" strategy. Each organization needs to develop its own unique, long-term DX plan. It must do so by realizing that we now live in a data-driven age, and that technologies such as Cloud Computing, Big Data, the IoT, Cognitive Computing, and Blockchain are only tools. In her general session at 21st Cloud Expo, Rebecca Wanta explained how the strategy must focus on DX and include a commitment from top management to create great IT jobs, monitor ...
The 22nd International Cloud Expo | 1st DXWorld Expo has announced that its Call for Papers is open. Cloud Expo | DXWorld Expo, to be held June 5-7, 2018, at the Javits Center in New York, NY, brings together Cloud Computing, Digital Transformation, Big Data, Internet of Things, DevOps, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
"Digital transformation - what we knew about it in the past has been redefined. Automation is going to play such a huge role in that because the culture, the technology, and the business operations are being shifted now," stated Brian Boeggeman, VP of Alliances & Partnerships at Ayehu, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Continuous Delivery makes it possible to exploit findings of cognitive psychology and neuroscience to increase the productivity and happiness of our teams. In his session at 22nd Cloud Expo | DXWorld Expo, Daniel Jones, CTO of EngineerBetter, will answer: How can we improve willpower and decrease technical debt? Is the present bias real? How can we turn it to our advantage? Can you increase a team’s effective IQ? How do DevOps & Product Teams increase empathy, and what impact does empath...
You know you need the cloud, but you're hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You're looking at private cloud solutions based on hyperconverged infrastructure, but you're concerned with the limits inherent in those technologies. What do you do?
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
Cloud Expo | DXWorld Expo have announced the conference tracks for Cloud Expo 2018. Cloud Expo will be held June 5-7, 2018, at the Javits Center in New York City, and November 6-8, 2018, at the Santa Clara Convention Center, Santa Clara, CA. Digital Transformation (DX) is a major focus with the introduction of DX Expo within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive ov...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, discussed the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, application p...