The gain is led by a 12% increase in product sales and a 2% rise in service revenue. The company’s operating loss improved by 31%.
Graphics provider Chyron today reported that its fourth quarter 2011 revenue quarter increased 15% to $8.1 million compared to $7 million in the fourth quarter of 2010.
Product sales for the fourth quarter increased 12% to $6 million compared to $5.3 million in the comparable quarter of 2010. Service revenues, which include revenues from the company’s Axis cloud-based graphics service, as well as systems hardware and software maintenance agreements, training and creative services, increased 24% to $2.1 million from $1.7 million in the comparable quarter last year.
Service revenues as a percentage of total revenues for the fourth quarter of 2011 were 25% as compared to 23% in the prior year’s fourth quarter.
Gross profit margin for the fourth quarter increased 300 basis points to 71% compared to 68% in last year’s fourth quarter. Operating expenses for the quarter were $6.2 million compared to $5.4 million in the comparable quarter of 2010; an increase of 14%, primarily driven by higher sales and marketing expenses and increased sales personnel in international markets. Chyron had an operating loss of $0.43 million for the fourth quarter of 2011 compared to an operating loss of $0.63 million in the fourth quarter of 2010; an improvement of 31%.
The company recorded a net loss of $0.4 million, or $(0.02) per diluted share, in the fourth quarter of 2011 compared to a net loss of $0.5 million, or $(0.03) per diluted share, in the fourth quarter of 2010.
Michael Wellesley-Wesley, Chyron president-CEO, commented: “We are pleased with the results of the fourth quarter and the full year. While 2011 represented the fourth consecutive year of challenging economic conditions, we achieved solid double-digit revenue growth for both the fourth quarter and the full year.
“We are particularly pleased with the results in the second half of the year with respect to the 34% and 24% increases in services revenues in the third and fourth quarters respectively, as compared to the corresponding quarters of 2010.