Welcome!

News Feed Item

Espial Reports 2014 First Quarter Results

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."

Financial Summary

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 2013.

  • 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.

Conference Call

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)
  (unaudited)   (unaudited)
       
Net income (loss) and Comprehensive loss $1,028,574   ($3,272,165)
Add      
  Stock compensation 33,761   42,782
    Depreciation of property and equipment 39,701   49,285
Amortization of intangibles 160,770   361,957
  1,262,806   (2,818,141)
Less (add)      
Net interest income (expense) (83,707)   (134,362)
Foreign exchange gain (loss) 113,781   (223,283)
Income taxes (73,087)   (43,846)
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
  (Unaudited)   (Unaudited)
           
  Software $ 3,427,351   $ 1,389,445
  Professional services   360,394     247,819
  Support and maintenance   1,187,079     904,795
Revenue   4,974,824     2,542,059
Cost of revenue   754,131     513,317
Gross margin   4,220,693     2,028,742
           
Expenses          
  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
    3,149,106     4,899,423
Income (loss) before other income (expense)   1,071,587     (2,870,681)
  Interest income   5,075     7,718
  Foreign exchange gain (loss)   113,781     (223,283)
  Interest expense   (88,782)     (142,080)
Income (loss) before taxes   1,101,661      (3,228,326)
Income taxes   (73,087)     (43,843)
Net income (loss) and comprehensive income (loss) $ 1,028,574   $ (3,272,169)


Consolidated Balance Sheets

  March 31, 2014   December 31, 2013
             
CURRENT ASSETS          
  Cash and cash equivalents $ 7,032,088   $ 7,407,093
  Accounts receivable   2,472,045     2,057,222
  Investment tax credits receivable   387,574     312,027
  Prepaid expenses and other assets   703,542     502,990
    10,595,249     10,279,332
           
Equipment   506,762     539,348
Intangible assets   1,963,298     2,099,398
Goodwill   3,340,808     3,340,808
  $ 16,406,117   $ 16,258,886
           
CURRENT LIABILITIES          
  Accounts payable and accrued liabilities $ 1,767,764   $ 1,872,505
  Provisions   292,838     281,813
  Deferred revenue   3,884,442     4,052,700
  Term Debt   1,482,619     2,442,056
    7,427,663     8,649,074
Provisions   295,553     363,132
Total Liabilities   7,723,216     9,012,206
           
SHAREHOLDERS' EQUITY          
  Share capital   78,283,061     77,781,292
  Warrants   1,308,121     1,436,004
  Share based payments reserve   12,158,841     12,125,080
  Deficit   (83,067,122)     (84,095,696)
    8,682,901     7,246,680
  $ 16,406,117   $ 16,258,886

 

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
DevOps tends to focus on the relationship between Dev and Ops, putting an emphasis on the ops and application infrastructure. But that’s changing with microservices architectures. In her session at DevOps Summit, Lori MacVittie, Evangelist for F5 Networks, will focus on how microservices are changing the underlying architectures needed to scale, secure and deliver applications based on highly distributed (micro) services and why that means an expansion into “the network” for DevOps.
In his session at Cloud Expo, Alan Winters, an entertainment executive/TV producer turned serial entrepreneur, will present a success story of an entrepreneur who has both suffered through and benefited from offshore development across multiple businesses: The smart choice, or how to select the right offshore development partner Warning signs, or how to minimize chances of making the wrong choice Collaboration, or how to establish the most effective work processes Budget control, or how to max...
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The int...
China Unicom exhibit at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE FDD, TD-LTE), fixed-line broadband, ICT, data communica...
ChatOps is an emerging topic that has led to the wide availability of integrations between group chat and various other tools/platforms. Currently, HipChat is an extremely powerful collaboration platform due to the various ChatOps integrations that are available. However, DevOps automation can involve orchestration and complex workflows. In his session at @DevOpsSummit at 20th Cloud Expo, Himanshu Chhetri, CTO at Addteq, will cover practical examples and use cases such as self-provisioning infra...
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
MongoDB Atlas leverages VPC peering for AWS, a service that allows multiple VPC networks to interact. This includes VPCs that belong to other AWS account holders. By performing cross account VPC peering, users ensure networks that host and communicate their data are secure. In his session at 20th Cloud Expo, Jay Gordon, a Developer Advocate at MongoDB, will explain how to properly architect your VPC using existing AWS tools and then peer with your MongoDB Atlas cluster. He'll discuss the secur...
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Deep learning has been very successful in social sciences and specially areas where there is a lot of data. Trading is another field that can be viewed as social science with a lot of data. With the advent of Deep Learning and Big Data technologies for efficient computation, we are finally able to use the same methods in investment management as we would in face recognition or in making chat-bots. In his session at 20th Cloud Expo, Gaurav Chakravorty, co-founder and Head of Strategy Development ...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Imagine having the ability to leverage all of your current technology and to be able to compose it into one resource pool. Now imagine, as your business grows, not having to deploy a complete new appliance to scale your infrastructure. Also imagine a true multi-cloud capability that allows live migration without any modification between cloud environments regardless of whether that cloud is your private cloud or your public AWS, Azure or Google instance. Now think of a world that is not locked i...
Technology innovation is the driving force behind modern business and enterprises must respond by increasing the speed and efficiency of software delivery. The challenge is that existing enterprise applications are expensive to develop and difficult to modernize. This often results in what Gartner calls "Bimodal IT," where business struggle to apply modern tools and practices to traditional monolithic applications. But these existing assets can be modernized and made more efficient without havin...