11.08.2010 01:00 PM
Chyron Cuts Losses on Boosted Revenues
MELVILLE, N.Y.: Chyron cut its net loss to $482,000 in the third
quarter, down from $840,000 a year ago. The broadcast graphics concern reported
revenues of $6.88 million, up 8 percent from the year-ago quarter. Service
revenues, including Axis online graphics, hardware and software maintenance
agreements, training and creative services, were up 24 percent to $1.57
million for the quarter. Product revenues were $5.31 million.
“We were more than encouraged about our quarterly results, particularly as our
financials met or exceeded our internal projections,” Chyron chief Michael
Wellesley-Wesley said. “Operating expenses were down and both our operating
loss and net loss narrowed considerably compared to the same quarter last year.”
Net loss per share was 2 cents versus 5 cents a year ago. Operating loss was
$670,000 versus $1.14 million.
“Revenue showed single digit gains, an achievement on its own given that our
customers have only started to emerge more fully from the protracted downturn
that deeply impacted the sector for over two years,” Wellesley-Wesley said. “Most
of our geographic markets also exhibited growth, including North and South
America--with the most evident improvement being a 169 percent increase in
Chyron responded to the economic recovery of capex spending by putting more boots
on the ground, he said. The “customer facing team’ was increased by 14 percent.
Four folks were added to research and development, bringing the total to 39.
“We expect these investments to begin bearing fruit in the fourth quarter and
continue into 2011, which we believe holds the potential for stronger revenue
growth,” Wellesley-Wesley said.
This year’s TV station windfall from political advertising, as well as the
automotive recovery, is expected to translate into increased capex spending
“Since the fourth quarter of 2008, Chyron has been riding out the recessionary
storm by improving its technology assets,” the chief said. “We believe that we
have weathered the storm and are now ready for liftoff. By all appearances, an
inflection point was reached this quarter in the media markets we address, and
what we have done, and continue to do, we believe readies us for the opportunities
arising from the recovery.”
Chyron finished the quarter with $4.5 million in cash and equivalents, compared
to $5.24 million as of Dec. 31, 2009. It listed no long-term debt. Shares of
Chyron (NASDAQ: CHYR) shot up from $1.60 to $1.90 on news of its results.
-- Deborah D. McAdams