Espial Reports 2013 First Quarter Results May 09, 2013OTTAWA, May 9, 2013 /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, 2013.
Espial Highlights
Completed acquisition of ANT, which further advances Espials market leadership in HTML5 user experience across set-top boxes and multi-screen devices.
Secured new customers including Cisco, Samsung and Humax through the acquisition of ANT.
Signed a partnership agreement with WiLAN to pursue licensing of certain Espials patents related to video-over-IP technology.
Received grant of patent by the USPTO for fast channel change technology
Financial Summary
For the three-month period ended March 31, 2013, the Company reported revenues of $2.5 million compared with revenues of $3.7 million for the three months ended March 31, 2012. Earnings before interest, foreign exchange, taxes, stock compensation, depreciation and amortization (EBITDA) for the first quarter of fiscal 2013 was a loss of $2.5 million compared with an income of $0.1 million in the first quarter of fiscal 2012. Included in the quarters EBITDA was a restructuring charge of $1.1 million related to the acquisition of ANT. Net loss for the quarter was $3.3 million or $0.23 per share, compared with a net loss of $0.4 million last year, or $0.03 per share.
"Were pleased to close the ANT acquisition and excited to have the team join Espial" said Jaison Dolvane, CEO, Espial. "We are now working to integrate the companies and expect to complete this over the next 2 quarters. The acquisition of ANT provides us with a strong set of customers and increased engineering capability to deliver an advanced HTML5 user experience across set-top boxes and multiscreen devices. In Q1, we also continued our initiatives to increase the depth of our intellectual property and develop licensing programs through our partnership with WiLAN. We believe that as service providers and Smart TV manufacturers migrate to IP video services, Espials products and intellectual property are well positioned to play a key role in the industry. Our customer pipeline remains strong and the new products we release later this year will differentiate us further."
"As a result of the ANT acquisition closing mid-way through the quarter, our first quarter results did not include $993,000 of revenue that would have been included had the acquisition occurred at the beginning of the quarter. In addition, we recorded a $1.1 million one-time acquisition related restructuring charge" said Carl Smith, Chief Financial Officer. "As we noted in our last two conference calls and press releases, we continue to experience a slower pace of roll-outs from our existing European customers. We believe this is related to the prevailing economic challenges in Europe and may continue for some time. Europe notwithstanding, we are seeing increased activity in North America and Asia as those economies gain strength."
Q1 Financial Results
First quarter revenues were $2,542,059 compared with revenues of $3,650,536 in the same period a year ago. First quarter software license and royalty revenues were $1,389,445 compared to $1,908,236 in the first quarter of fiscal 2012. Professional services for the first quarters of 2013 and 2012 were $247,819 and $962,025 respectively. Maintenance and support revenues for the first quarter were $904,795 compared to $780,275 last year.
Gross margin for the first quarter of fiscal 2013 was 78% compared with 77% in the first quarter of fiscal 2012.
Operating expenses in the first quarter of fiscal 2013 were $4,899,423 compared to $3,045,360 in the first quarter of fiscal 2012.
Earnings before interest, foreign exchange, taxes, stock compensation, depreciation and amortization (EBITDA) for the first quarter of fiscal 2013 was a loss of $2,460,496 compared to income of $112,758 in fiscal 2012. Included in the loss was a restructuring charge of $1,049,222 related to the acquisition of ANT.
Net loss, which includes non-cash items like depreciation, goodwill and intangibles in the first quarter was $3,272,169 compared to a loss of $358,603 last year.
Cash and cash equivalents on March 31, 2013 was $4,912,034.
A complete set of financial statements and managements discussion and analysis for the period ended March 31, 2013 will be available at http://www.sedar.com.
Conference Call
The Company will be hosting a conference call to discuss the Q1 2013 financial results on May 10, 2013 at 10:30 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 June 9, 2013, at the following numbers and passcode:
Toll line: 1 416-764-8677, Passcode: 653198
Toll-free line: 1-888-390-0541, Passcode: 653198
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. Espials 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 us 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 identif
