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
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.
"At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, shared examples from a wide range of industries – including en...
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Enterprise architects are increasingly adopting multi-cloud strategies as they seek to utilize existing data center assets, leverage the advantages of cloud computing and avoid cloud vendor lock-in. This requires a globally aware traffic management strategy that can monitor infrastructure health across data centers and end-user experience globally, while responding to control changes and system specification at the speed of today’s DevOps teams. In his session at 20th Cloud Expo, Josh Gray, Chie...
Consumers increasingly expect their electronic "things" to be connected to smart phones, tablets and the Internet. When that thing happens to be a medical device, the risks and benefits of connectivity must be carefully weighed. Once the decision is made that connecting the device is beneficial, medical device manufacturers must design their products to maintain patient safety and prevent compromised personal health information in the face of cybersecurity threats. In his session at @ThingsExpo...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, discussed how to use Kubernetes to set up a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace. H...
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.
SYS-CON Events announced today that Massive Networks will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
SYS-CON Events announced today that SkyScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SkyScale is a world-class provider of cloud-based, ultra-fast multi-GPU hardware platforms for lease to customers desiring the fastest performance available as a service anywhere in the world. SkyScale builds, configures, and manages dedicated systems strategically located in maximum-security...
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...