Service revenue was up 13% in the quarter, while product revenue was down 9%. The company reported a net loss of $700,000 as compared to a net loss of $3.49 million in the third quarter of 2011
Chyron today announced its total revenues for the third quarter ended Sept. 30 decreased 3% to $7.25 million as compared to $7.47 million in the third quarter of 2011.
Service revenues, which include revenues from the company’s Axis cloud-based graphics service, systems hardware and software maintenance agreements, software training, creative services and systems commissioning were $2.39 million as compared to $2.11 million in the comparable quarter last year, a 13% increase.
Third quarter Axis revenues increased 6%, maintenance agreements revenues increased 25%, and systems commissioning revenues doubled, but other services revenues decreased primarily due to a decline in creative services revenues.
Service revenues as a percentage of total revenues for the third quarter of 2012 were 33% as compared to 28% in the prior year’s third quarter.
Product revenues for the third quarter were $4.86 million as compared to $5.36 million in the comparable quarter of 2011, a 9% decline. Product revenues were 67% of third quarter total revenues as compared to 72% in the prior year’s third quarter.
Operating expenses for the third quarter were $5.9 million compared to $6.0 million in the comparable quarter of 2011. A 4% increase in research and development to $1.82 million was more than offset by a 2% decrease in sales and marketing to $3.1 million and an 8% decrease in general and administrative expenses to $99,000 for the third quarter of this year versus last year.
Chyron had an operating loss of $1 million for the third quarter of 2012 compared to an operating loss of $870,000 in the third quarter of 2011.
Net loss for the third quarter was $700,000 as compared to a net loss of $3.49 million in the third quarter of 2011, which included a $2.72 million charge against deferred tax assets because management determined, at that time, for it to be more likely than not that a portion of the company’s net operating losses expiring through the end of 2012 would not be realized.
Michael Wellesley-Wesley, Chyron president-CEO, said: “Our third quarter revenues of $7.25 million were 3% below the comparable period in 2011. This continues the pattern of nearly flat year over year comparisons we experienced in the first half. As is the case for other companies in our industry we have experienced a slowdown in our product revenue stream as a result of delays in spending as broadcasters emphasize cost control and reschedule their capital expenditures.
“This decline was experienced in North America and more markedly in Europe where the economy has stalled. This was offset somewhat by improvements in our Asian and Latin American markets. Our services revenues grew 13% year over year with the result that services accounted for 33% of total revenues in the third quarter. We have taken steps to align our operating expenses with the current business climate.”
Read the company’s report here.