Product revenues increased 3% to $5.97 million compared to $5.80 million in 1Q 2012. Services revenues decreased 2% to $2.04 million compared to $2.08 million. CEO Michael Wellesley-Wesley says it expects to close its acquisition of Hego AB on May 22.
QUARTERLY REPORT
Chyron 1Q Revenue Up 2% To $8 Million
Chyron Corp. today announced that its first quarter 2013 revenue increased 2% to $8.01 million compared to $7.88 million in 1Q 2012.
Product revenues increased 3% to $5.97 million compared to $5.80 million. Services revenues decreased 2% to $2.04 million compared to $2.08 million. Operating expenses in 1Q 2013 decreased 1% to $6.53 million compared to $6.62 million in 1Q 2012. Included in 1Q2013 operating expenses were $0.69 million in transaction costs related to the planned acquisition of Hego AB, expected to close later this month. Excluding these costs, operating expenses would have decreased 12% to $5.84 million compared to a year ago, the company said.
Operating loss decreased 25% to $0.81 million compared to an operating loss of $1.07 million. Excluding the Hego transaction costs, operating loss would have decreased 89% to $0.11 million compared to 1Q2012;
Net loss in 1Q2013 decreased 4% to $(0.92) million compared to net loss of $(0.95) million in 1Q 2012. Excluding the Hego transaction costs, net loss would have decreased 76% to $0.22 million compared to 1Q 2012.
Michael Wellesley-Wesley, Chyron CEO, said: “We expect to close our acquisition of Hego AB on May 22, 2013. Hego is well managed, profitable and fast growing, and some of the public company costs that have hitherto been borne entirely by Chyron alone will now be allocated across the larger combined entity.
“In early April, we presented at the annual NAB Tradeshow for the first time introducing the ChyronHego brand and we experienced strong interest in our combined News and Sports product range. I expect to see this interest translate into revenue in the second half of 2013.
BRAND CONNECTIONS
“Our reported first quarter performance shows a small year over year revenue increase and a small improvement in operating expense,” he continued. “However, if we strip out Hego related transaction costs a different picture begins to emerge. Excluding Hego transaction costs Chyron’s operating loss would have decreased 89% year over year. On May 2, 2013, we announced that we had reduced the workforce by a further 20 people for incremental annual operating expense savings of $3 million; this will result in a different and improved financial model.”
Read the company’s report here.
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