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
The initial debate is over: Any enterprise with a serious commitment to IT is migrating to the cloud. But things are not so simple. There is a complex mix of on-premises, colocated, and public-cloud deployments. In this power panel at 18th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists will look at the present state of cloud from the C-level view, and how great companies and rock star executives can use cloud computing to meet their most ambitious and disruptive business ...
SYS-CON Events announced today that MobiDev will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobile software company with over 200 develope...
SYS-CON Events announced today that BMC Software has been named "Siver Sponsor" of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. BMC is a global leader in innovative software solutions that help businesses transform into digital enterprises for the ultimate competitive advantage. BMC Digital Enterprise Management is a set of innovative IT solutions designed to make digital business fast, seamless, and optimized from mainframe to mo...
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from Web startups to global enterprises. SoftLayer's modular architecture, full-featured API, and sophisticated automation provide unparalleled performance and control. Its flexible unified platform seamlessly spans physical and virtual devices linked via a world...
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
SYS-CON Events announced today TechTarget has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget is the Web’s leading destination for serious technology buyers researching and making enterprise technology decisions. Its extensive global networ...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
Many banks and financial institutions are experimenting with containers in development environments, but when will they move into production? Containers are seen as the key to achieving the ultimate in information technology flexibility and agility. Containers work on both public and private clouds, and make it easy to build and deploy applications. The challenge for regulated industries is the cost and complexity of container security compliance. VM security compliance is already challenging, ...
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
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, wh...
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.