Welcome!

News Feed Item

ChyronHego Reports Financial Results for the First Quarter 2014

MELVILLE, NY -- (Marketwired) -- 05/09/14 -- ChyronHego Corporation (NASDAQ: CHYR), a global leader in broadcast graphics creation, playout, and real-time data visualization with a wide variety of products and services for live television, news and sports production, today announced its financial results for the first quarter ended March 31, 2014.

First Quarter Financial Highlights:

  • Q1 2014 revenues increased 57% to $12.6 million compared to $8.0 million in Q1 2013;
  • Operating loss in Q1 2014 of $3.1 million compared to operating loss in Q1 2013 of $0.8 million;
  • Excluding a mark to market adjustment described below, operating loss in Q1 2014 would have been $0.6 million as compared to operating loss of $0.8 million in Q1 2013;
  • Net loss of $3.2 million in Q1 2014, as compared to a net loss of $0.9 million in Q1 2013;
  • Excluding the mark to market adjustment, net loss of $0.7 million in Q1 2014 compared to net loss of $0.9 million in Q1 2013.

President and CEO Johan Apel commented, "ChyronHego's revenues for the first quarter are ahead of plan. The operating result is better than expected but is affected by a lower than planned gross margin coming from our investment in contracts with the European soccer leagues, in addition to the recently announced initial rollout of TRACAB player tracking technology across three Major League Baseball stadiums. We expect the gross margin to pick up during the latter part of the year. Almost half of our first quarter revenues are of the recurring type, generated in the areas of cloud services, software licensing, and production services. We plan to continue the transformation of the business model to be balanced between high margin products and recurring services."

Mr. Apel added, "We enjoyed meeting with new and existing customers in April at NAB Show in Las Vegas. Our product launches were well received and it was great to get the chance to present our upcoming acquisitions to the world, WeatherOne and ZXY Sport Tracking. We have great expectations for them and I anticipate that they will have a positive impact on the consolidated financials going forward. Furthermore, we will continue our focus on cost control and also expect to realize further synergies from our acquisitions to increase profitability during 2014."

First Quarter 2014 Financial Results

Revenues for the first quarter of 2014 increased 57% to $12.6 million as compared to $8.0 million in the first quarter of 2013. This $4.6 million increase was driven primarily from contribution of services from the 2013 merger with Hego.

Gross profit margin for the first quarter of 2014 was 61%, down from 71% in Q1 2013. Services, representing 54% of revenues, carry a lower gross profit margin than products.

Operating expenses for the first quarter of 2014 were $8.3 million, excluding the mark to market adjustment of $2.6 million, compared to $6.5 million in the first quarter of 2013. Research & development (R&D) expenses were $2.2 million, up 22% from $1.8 million in the first quarter 2013, primarily due to inclusion of $0.8 million of Hego R&D expenses, offset by cost savings from the 2013 workforce reduction. Sales and marketing (S&M) expenses were $4.8 million, up 66% from $2.9 million in Q1 2013, primarily due to the incremental costs from the Hego merger, including amortization of intangibles of $0.3 million. General and administrative (G&A) expenses were $1.3 million, a decrease of $0.6 million from $1.9 million in the first quarter of 2013. The decrease was primarily due to inclusion in Q1 2013 of $0.7 million in merger transaction expenses and cost savings from the 2013 workforce reduction of $0.1 million, offset by the incremental G&A costs from the merger with Hego.

Net loss for the first quarter of 2014 was $3.2 million, or $(0.10) per basic and diluted share, as compared to net loss of $0.9 million, or $(0.05) per basic and diluted share, in the first quarter of 2013. Excluding the mark to market expense of $2.6 million from revaluation of the contingent earn-out shares related to the Hego merger, the Company would have reported net loss of $0.7 million for the first quarter of 2014 compared to a net loss of $0.9 million for the first quarter of 2013.

Operating loss and net loss amounts shown herein, that are exclusive of the mark to market adjustment for the change in the fair value of the contingent consideration, are not U.S. generally accepted accounting principles basis operating loss and net loss, and are reported herein solely to disclose the operating loss and net loss amounts that might have been reported had this charge not been recognized, as a basis for comparison between periods. Management believes that disclosing operating loss and net loss exclusive of this charge for the first quarter of 2014 provides an alternative basis on which to compare results between the periods and an understanding of earnings that would have resulted in the 2014 period had this charge not been incurred.

Conference Call and Webcast: Fourth Quarter Financial Results

ChyronHego management will host a conference call on Friday, May 9, 2014, at 10:00 a.m. Eastern Time to review the first quarter 2014 results. Participants using the telephone should dial 877-303-9145 (U.S. and Canada) or 760-536-5203 (International) and refer to conference code 40485333. Web participants are encouraged to go to http://investor.chyronhego.com (click on Events & Presentations). A replay will be available shortly after the call on http://investor.chyronhego.com.

About ChyronHego
ChyronHego (NASDAQ: CHYR) is a global leader in broadcast graphics creation, playout and real-time data visualization with a wide range of products and services for live television, news and sports production. Joining forces in 2013, with over 80 years of combined industry expertise, Chyron and Hego Group offer award-winning solutions -- such as the TRACAB™ player tracking system and end-to-end BlueNet™ graphics workflow -- under the collective ChyronHego brand. Headquartered in Melville, N.Y., the Company also has offices in the Czech Republic, Denmark, Finland, Germany, Mexico, Norway, Singapore, Slovak Republic, Sweden, and the United Kingdom. For more information on ChyronHego, visit www.chyronhego.com.

Special Note Regarding Forward-looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to (i) our belief that our business is more balanced and predictable in terms of geographies and products and services; (ii) our belief that as a result of the merger we have an exceptionally strong product offering backed up by extensive product development and engineering resources and strong global service and support capability; and, (iii) our belief that we are assuming a normalized level of operating expenses and anticipate that our future results should show growth in operating profitability at current gross profit margin levels. These forward-looking statements are based on management's current expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: current and future economic conditions that may adversely affect our business and customers; potential fluctuation of our revenues and profitability from period to period which could result in our failure to meet expectations; our ability to integrate the operations of Chyron and Hego successfully and in a timely manner; our ability to maintain adequate levels of working capital; our ability to successfully maintain the level of operating costs; our ability to obtain financing for our future needs should there be a need; our ability to incentivize and retain our current senior management team and continue to attract and retain qualified scientific, technical and business personnel; our ability to expand our Axis online graphics creation solution or to develop other new products and services; our ability to generate sales and profits from our Axis online graphics services, workflow and asset management solutions; rapid technological changes and new technologies that could render certain of our products and services to be obsolete; competitors with significantly greater financial resources; introduction of new products and services by competitors; challenges associated with expansion into new markets; failure to stay in compliance with all applicable NASDAQ requirements that could result in NASDAQ delisting our common stock; and, other factors discussed under the heading "Risk Factors" contained in Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2013 which has been filed with the Securities and Exchange Commission, as well as any updates to those risk factors filed from time to time. All information in this press release is as of the date of the release and we undertake no duty to update this information unless required by law.


                           CHYRONHEGO CORPORATION
        CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
                  (In thousands, except per share amounts)

                                                        Three Months Ended
                                                             March 31,
                                                          2014       2013
                                                       ---------  ---------
Product revenues                                       $   5,781  $   5,974
Service revenues                                           6,840      2,043
                                                       ---------  ---------
Total revenues                                            12,621      8,017
Gross profit                                               7,736      5,722
Operating expenses:
  Selling, general and administrative                      6,111      4,751
  Research and development                                 2,178      1,780
  Change in fair value of contingent consideration         2,556          -
                                                       ---------  ---------
Total operating expenses                                  10,845      6,531
                                                       ---------  ---------
Operating loss                                            (3,109)      (809)
Interest and other income (expense), net                    (196)       (97)
                                                       ---------  ---------
Loss before taxes                                         (3,305)      (906)
Income tax (expense) benefit, net                             88        (11)
                                                       ---------  ---------
Net loss                                                  (3,217)      (917)
Less: Net income attributable to non-controlling
 interests                                                    25          -
                                                       ---------  ---------
Net loss attributable to ChyronHego shareholders       $  (3,242) $    (917)
                                                       =========  =========
Net loss per common share attributable to ChyronHego
 shareholders -
  Basic                                                $   (0.10) $   (0.05)
  Diluted                                              $   (0.10) $   (0.05)
Weighted average number of common and common
 equivalent shares outstanding:
  Basic                                                   31,118     17,362
  Diluted                                                 31,118     17,362



              CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
                               (in thousands)

                                                   March 31,    December 31,
                                                      2014          2013
                                                 ------------- -------------
Assets:
Cash and cash equivalents                        $       3,988 $       5,266
Accounts receivable, net                                 9,009         7,781
Inventories, net                                         2,747         2,816
Other current assets                                     2,226         2,525
                                                 ------------- -------------
  Total current assets                                  17,970        18,388
Goodwill and intangible assets, net                     27,585        27,916
Other non-current assets                                 4,427         4,348
                                                 ------------- -------------
  Total assets                                   $      49,982 $      50,652
                                                 ============= =============
Liabilities and shareholders' equity:
Current liabilities                              $      16,004 $      17,152
Non-current liabilities                                 13,852        18,033
                                                 ------------- -------------
  Total liabilities                                     29,856        35,185
                                                 ------------- -------------
Shareholders' equity                                    20,126        15,467
                                                 ------------- -------------
Total liabilities and shareholders' equity       $      49,982 $      50,652
                                                 ============= =============


All trademarks and registered trademarks mentioned herein are the property of their respective owners.

Social Media
Facebook:
http://www.facebook.com/chyronhego
Twitter: http://twitter.com/chyronhego
LinkedIn: http://www.linkedin.com/company/chyron
YouTube: http://www.youtube.com/user/chyronmelville

Copyright 2014 ChyronHego Corporation

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of companies worldwide-from publishers and broadcasters, to enterprises, marketing agencies and household-name brands. Building on its established design leadership, Adobe enables customers not o...
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...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
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...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
From wearable activity trackers to fantasy e-sports, data and technology are transforming the way athletes train for the game and fans engage with their teams. In his session at @ThingsExpo, will present key data findings from leading sports organizations San Francisco 49ers, Orlando Magic NBA team. By utilizing data analytics these sports orgs have recognized new revenue streams, doubled its fan base and streamlined costs at its stadiums. John Paul is the CEO and Founder of VenueNext. Prior ...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Businesses are struggling to manage the information flow and interactions between all of these new devices and things jumping on their network, and the apps and IT systems they control. The data businesses gather is only helpful if they can do something with it. In his session at @ThingsExpo, Chris Witeck, Principal Technology Strategist at Citrix, will discuss how different the impact of IoT will be for large businesses, expanding how IoT will allow large organizations to make their legacy ap...
“We're a global managed hosting provider. Our core customer set is a U.S.-based customer that is looking to go global,” explained Adam Rogers, Managing Director at ANEXIA, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Apache Hadoop is a key technology for gaining business insights from your Big Data, but the penetration into enterprises is shockingly low. In fact, Apache Hadoop and Big Data proponents recognize that this technology has not yet achieved its game-changing business potential. In his session at 19th Cloud Expo, John Mertic, director of program management for ODPi at The Linux Foundation, will explain why this is, how we can work together as an open data community to increase adoption, and the i...
"We have several customers now running private clouds. They're not as large as they should be but it's getting there. The adoption challenge has been pretty simple. Look at the world today of virtualization vs cloud," stated Nara Rajagopalan, CEO of Accelerite, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
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 –...
What does it look like when you have access to cloud infrastructure and platform under the same roof? Let’s talk about the different layers of Technology as a Service: who cares, what runs where, and how does it all fit together. In his session at 18th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, an IBM company, spoke about the picture being painted by IBM Cloud and how the tools being crafted can help fill the gaps in your IT infrastructure.
One of biggest questions about Big Data is “How do we harness all that information for business use quickly and effectively?” Geographic Information Systems (GIS) or spatial technology is about more than making maps, but adding critical context and meaning to data of all types, coming from all different channels – even sensors. In his session at @ThingsExpo, William (Bill) Meehan, director of utility solutions for Esri, will take a closer look at the current state of spatial technology and ar...