|By PR Newswire||
|April 23, 2014 06:04 PM EDT||
OTTAWA, April 23, 2014 /CNW/ - Espial® Group Inc. ("Espial" or the "Company"), (TSX: ESP), a leader in the delivery of on-demand TV software and services, today announced its first quarter financial results for the three month period ended March 31, 2014.
Espial Q1 Highlights
- Q1 revenue increased 96% to a record $5.0 million from $2.5 million last year.
- Record EBITDA increased to an income of $1.3 million
- Solid shipments in Q1 of set-top box and devices to our Service Provider and Smart TV customers globally
- Participated in leading cable industry panels on RDK & HTML5 at TV Connect in London, UK and the Lightreading Cable Event in Denver, Colorado
- Secured 2 new wins for Espial multiscreen solutions with several European service provider customers to introduce TV everywhere services.
"We had a strong start to fiscal 2014. In Q1, we saw solid set-top box and Smart TV deployments and new project wins from both our service provider and consumer electronic customers." said Jaison Dolvane, CEO, Espial. "Cable operators are looking to adopt open, cloud based solutions like RDK and HTML5, so they can achieve rapid service innovation and deliver rich user experiences. In line with our strategy, we continue to gain the attention of major cable operators worldwide and made good progress developing our sales pipeline in Q1. We are very pleased with our recent quarterly results and believe we remain well positioned to capitalize on the opportunities ahead."
For the three-month period ended March 31, 2014, the Company reported revenues of $5.0 million compared with revenues of $2.5 million for the three months ended March 31, 2013. Earnings before interest, foreign exchange, taxes, stock compensation, depreciation and amortization (EBITDA) for the first quarter of fiscal 2014 was $1.3 million compared with a loss of $2.4 million in the first quarter of fiscal 2013. Net income for the quarter was $1.0 million or $0.05 per share, compared with a net loss of $3.3 million last year, or $0.23 per share.
Q1 Financial Results
First quarter revenues were $4,974,824 compared with revenues of
$2,542,059 in the same period a year ago. First quarter software
license and royalty revenues were $3,427,351 compared to $1,389,445 in
the first quarter of fiscal 2013. Professional services for the first
quarters of 2014 and 2013 were $360,394 and $247,819
respectively. Maintenance and support revenues for the first quarter
were $1,187,079 compared to $904,795 last year.
North American revenues were $1,859,999 in the first quarter of fiscal
2014 compared to $897,394 in 2013. Asia revenues were $1,014,449 in the
first quarter of 2014 compared to $897,385 in 2013. European revenues
were $2,100,376 in the first quarter of 2014 compared to $747,280 in
Gross margin for the first quarter of fiscal 2014 was 85% compared with
80% in the first quarter of fiscal 2013.
Operating expenses in the first quarter of fiscal 2014 were $3,149,105
compared to $4,899,419 in the first quarter of fiscal 2013.
Earnings before interest, foreign exchange, taxes, stock compensation,
depreciation and amortization (EBITDA) for the first quarter of fiscal
2014 was $1,305,819 compared to a loss of $2,416,649 in fiscal
2013. Included in last year's loss was a restructuring charge of
$1,049,222 related to the acquisition of ANT.
Net income, which includes non-cash items like depreciation, goodwill
and intangibles in the first quarter of fiscal 2014 was $1,028,574
compared to a loss of $3,272,165 last year.
Cash and cash equivalents on March 31, 2014 was $7,032,088.
A complete set of financial statements and management's discussion and analysis for the period ended March 31, 2014 will be available at http://www.sedar.com.
The Company will be hosting a conference call to discuss the Q1 2014 financial results on April 24, 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 ET on May 23, 2014, at the following numbers and passcode:
- Toll line: +1 416-764-8677, Passcode: 425739
- Toll-free line: +1-888-390-0541, Passcode: 425739
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 and its Annual Information Form for the fiscal year ended December 31, 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:
|March 31, 2014||March 31, 2013|
|(3 months)||(3 months)|
|Net income (loss) and Comprehensive loss||$1,028,574||($3,272,165)|
|Depreciation of property and equipment||39,701||49,285|
|Amortization of intangibles||160,770||361,957|
|Net interest income (expense)||(83,707)||(134,362)|
|Foreign exchange gain (loss)||113,781||(223,283)|
|Earnings before interest, foreign exchange, taxes, stock compensation, depreciation and amortization||$1,305,819||($2,416,650)|
Q1 Consolidated Statements of Income (Loss)
|Three months Ended|
|March 31, 2014||March 31, 2013|
|Support and maintenance||1,187,079||904,795|
|Cost of revenue||754,131||513,317|
|Sales and marketing||922,301||1,135,423|
|General and administrative||543,938||588,508|
|Research and development||1,522,097||1,764,309|
|Business restructuring charges||-||1,049,222|
|Amortization of intangible assets||160,770||361,961|
|Income (loss) before other income (expense)||1,071,587||(2,870,681)|
|Foreign exchange gain (loss)||113,781||(223,283)|
|Income (loss) before taxes||1,101,661||(3,228,326)|
|Net income (loss) and comprehensive income (loss)||$||1,028,574||$||(3,272,169)|
Consolidated Balance Sheets
|March 31, 2014||December 31, 2013|
|Cash and cash equivalents||$||7,032,088||$||7,407,093|
|Investment tax credits receivable||387,574||312,027|
|Prepaid expenses and other assets||703,542||502,990|
|Accounts payable and accrued liabilities||$||1,767,764||$||1,872,505|
|Share based payments reserve||12,158,841||12,125,080|
SOURCE ESPIAL GROUP
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...
Aug. 29, 2016 02:15 PM EDT Reads: 3,730
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...
Aug. 29, 2016 02:00 PM EDT Reads: 954
DevOps at Cloud Expo, taking place Nov 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 widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Aug. 29, 2016 02:00 PM EDT Reads: 2,475
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
Aug. 29, 2016 01:01 PM EDT Reads: 204
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Aug. 29, 2016 12:45 PM EDT Reads: 2,018
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Aug. 29, 2016 12:15 PM EDT Reads: 815
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
Aug. 29, 2016 12:00 PM EDT Reads: 862
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Aug. 29, 2016 12:00 PM EDT Reads: 3,187
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....
Aug. 29, 2016 12:00 PM EDT Reads: 821
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.
Aug. 29, 2016 08:15 AM EDT Reads: 738
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Aug. 29, 2016 08:00 AM EDT Reads: 938
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
Aug. 29, 2016 08:00 AM EDT Reads: 847
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
Aug. 29, 2016 07:30 AM EDT Reads: 818
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...
Aug. 29, 2016 03:00 AM EDT Reads: 2,429
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
Aug. 29, 2016 02:15 AM EDT Reads: 1,838