Espial Reports 2014 Fourth Quarter Results Search By: Financial ResultsInvestor Relations Ottawa, Ontario - February 26, 2015 - Espial Group Inc. (Espial or the Company), (TSX:ESP), a leader in the delivery of on-demand TV software and services, today announced its fourth quarter and year end financial results for the three and twelve month periods ended December 31, 2014.
Ottawa, Ontario - February 26, 2015 Espial Group Inc. ( Espial or the Company ), (TSX:ESP), a leader in the delivery of on-demand TV software and services, today announced its fourth quarter and year end financial results for the three and twelve month periods ended December 31, 2014.
Espial 2014 & Q4 Highlights
For the year ended December 31, 2014 revenue increased 59% to a record $20.0 million.
For the year ended December 31, 2014, Adjusted EBITDA income was a record $3.2 million.
Q4 revenue was a record $5.3 million.
Q4 Adjusted EBITDA income was $0.5 million.
Subsequent to year-end, announced that a European Tier-1 cable operator signed a major contract with Espial as primary software vendor and systems integrator to deliver their next-gen RDK based 4K DVB set-top box platform and user experience.
In 2014, we secured an RDK partnership with Samsung, and further announced multiple wins for our multi-screen and SmartTV products.
Exciting things are happening at Espial and our record quarter and annual results reflect this. The goal in 2014 was to secure a leadership position in this early market stage of RDK and HTML5 based software solutions, said Jaison Dolvane, CEO, Espial. We believe we achieved this goal and our strong sales pipeline reflects this. Early January we announced that a new European tier-1 cable operator selected Espial as their primary vendor to deliver their next generation RDK set-top box and HTML5 user experience. We are heading into 2015 with strong momentum towards further adoption of Espial's world-class user experience solutions.
Financial Summary
For the three-month period ended December 31, 2014, the Company is reporting revenue of $5.3 million compared with revenue of $3.9 million for the three months ended December 31, 2013. Adjusted EBITDA income for the fourth quarter of fiscal 2014 was $0.5 million compared to $0.6 million for the fourth quarter of fiscal 2013. Net loss for the quarter was $0.2 million, compared with net income of $0.1 million last year. Adjusted net income for the fourth quarter was $0.3 million compared to Adjusted net income of $0.3 million last year.
For the fiscal year ended December 31, 2014, the Company reported revenue of $20.0 million compared with revenue of $12.5 million for the fiscal year ended December 31, 2013. Adjusted EBITDA income for fiscal 2014 was $3.2 million compared to a loss of $3.0 million for fiscal 2013. Net income for the year was $1.2 million, compared with a net loss of $5.5 million last year. Adjusted net income for the 2014 fiscal year was $2.7 million compared to an Adjusted net loss of $4.3 million last year.
Q4 Financial Results
Fourth quarter revenues were $5,258,593 compared with revenues of $3,902,541 in the same period a year ago. Fourth quarter software license and royalty revenues were $2,898,646 compared to $2,482,863 in the fourth quarter of fiscal 2013. Professional services for the fourth quarters of 2014 and 2013 were $1,100,466 and $328,477 respectively. Maintenance and support revenues for the fourth quarter were $1,259,481 compared to $1,091,201 last year.
North American revenues were $1,665,761 in the fourth quarter of 2014 compared to $1,717,493 in 2013. Asia revenues were $1,984,378 in the fourth quarter of 2014 compared to $892,517 in 2013. European revenues were $1,608,454 in the fourth quarter of 2014 compared to $1,292,531 in 2013.
Gross margin for the fourth quarter of fiscal 2014 was 84% compared with 81% in the fourth quarter of fiscal 2013.
Operating expenses in the fourth quarter of fiscal 2014 were $4,429,375 compared to $2,845,056 in the fourth quarter of fiscal 2013.
Earnings before interest, foreign exchange, taxes, stock compensation, depreciation and amortization (Adjusted EBITDA) for the fourth quarter of fiscal 2014 was income of $544,971 compared to income of $576,690 in fiscal 2013.
Net loss, which includes non-cash items like depreciation, goodwill and intangibles, in the fourth quarter was $161,231 compared to net income of $148,944 last year.
Fiscal 2014 Financial Results
Total revenues for the fiscal year ended December 31, 2014 were $20,003,757 compared with revenues of $12,549,412, in the same period a year ago. Software license and royalty revenues for the 2014 fiscal year were $8,723,977 compared to $7,031,332 in fiscal 2013. Professional services for the fiscal years of 2014 and 2013 were $6,429,023 and $1,315,749 respectively. Maintenance and support revenues for the fiscal year ended December 31, 2014 were $4,850,757 compared to $4,202,331 last year.
North American revenues were $8,038,906 in the 2014 fiscal year compared to $4,262,957 in 2013. Asia revenues were $4,771,042 in the 2014 fiscal year compared to $4,125,156 in 2013. European revenues were $7,193,809 in the 2014 fiscal year compared to $4,161,299 in 2013.
Gross margin for the 2014 fiscal year was 79% compared with 82% in fiscal 2013.
Operating expenses for the 2014 fiscal year were $14,237,250 compared to $14,668,472 in fiscal 2013. Included in the fiscal 2013 year operating expenses is a restructuring charge and integration costs related to the acquisition of ANT.
Adjusted EBITDA for the fiscal year ended December 31, 2014 was income of $3,170,985 compared to a loss of $2,960,261 in fiscal 2013.
Net profit in the 2014 fiscal year was $1,171,885 compared to a loss of $5,529,425 in 2013.
Cash, restricted cash and cash equivalents on December 31, 2014, was $18,111,324
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