ChyronHego 3Q Revenue Climbs 15%

ChyronHego Corp. today reported a 15% increase in revenue Revenues for the third quarter of 2014 increased 15% to $16.0 million as compared to $14.0 million in the third quarter of 2013. This $2.0 million increase was primarily driven by the revenues associated with the company’s tracking and sports solutions. Revenues would have increased approximately $2.6 million, or 19%, in 3Q 2014 compared to 3Q 2013 if foreign exchange rates had remained the same in both periods.

Gross profit margins for each of the third quarters in 2014 and 2013 were 63%.

Operating expenses for the third quarter of 2014 were $8.7 million.

Operating loss for the third quarter of 2014 was $2.4 million and included a charge of $3.8 million for the change in the fair value of the company’s contingent consideration. This compares to a $1 million operating loss in 3Q 2013 which also includes a similar charge of $0.9 million and $1 million in severance costs. Absent the effect of these charges, operating income in 3Q 2014 was $1.4 million as compared to $0.9 million a year ago.

Net loss for the third quarter of 2014 was $2.6 million, or $(0.07) per basic and diluted share, as compared to a net loss of $1.1 million, or $(0.04) per basic and diluted share, in the third quarter of 2013.

President and CEO Johan Apel commented: “We are pleased with our strong third quarter performance. This is the first quarter where we can make year-over-year comparisons on the quarterly results since the Chyron and Hego merger, and we are encouraged by growth in revenues of 15%. We would have achieved a 19% growth in revenues without the impact of the strengthening US dollar as compared to various European currencies. Our operating results are improving with a large part of the revenue growth falling to the bottom line. With continued improvement, we expect operating results to increase in the coming quarters.”

Apel added, “Our strategy of helping our customers to create or enhance live content through use of graphics and sports data has proven successful, and we have a positive outlook for 2015. The sports industry is growing, which presents tremendous opportunity for ChyronHego.”