ChyronHego Posts Strong 3Q Revenue Gain

ChyronHego Corp. today reported third quarter financial results that included:

• Total revenues of $14.0 million for the third quarter, an increase of 94% when compared to $7.2 million for the prior year’s third quarter.

• Excluding revenues from Hego, with whom the company merged in May 2013, revenues increased 23%.

• Operating loss of $1.0 million for the third quarter, as compared to an operating loss of $1.0 million for the prior year’s third quarter.

• Excluding third quarter 2013 severance expense and a charge for the change in fair value of the Hego transaction contingent earn-out liability, operating profit of $0.9 million for the third quarter as compared to an operating loss of $0.9 million for the prior year’s third quarter if $0.1 million of severance expense were to be excluded.

• Net loss of $1.0 million for the third quarter of 2013, as compared to net loss of $0.7 million for the prior year’s third quarter.

• Excluding third quarter 2013 severance expense and a charge for the change in fair value of the Hego transaction contingent earn-out liability, net income of $0.8 million, as compared to net loss of $0.6 million for the prior year’s third quarter if $0.1 million of severance expense were to be excluded.

Michael Wellesley-Wesley, ChyronHego CEO, said: “Third quarter revenues for ChyronHego were ahead of plan. North America revenues accounted for 48% of our total revenues and rest of world revenues accounted for 52%. This compares with 71% and 29%, respectively, in the prior year third quarter. The percentage revenue split between products and services was 55%/45% in the third quarter and this compares with 67%/33% in the prior year third quarter.

“Two key objectives of the Hego transaction were to increase our international revenues as a proportion of total revenues and to increase our recurring services revenues. We achieved both of these objectives in the third quarter and as a result, we believe our business is more balanced and predictable in terms of geographies and products and services. In the third quarter we experienced strong revenue growth and now our focus is to aggressively grow our top line in 2014 and beyond. As a result of the merger we have an exceptionally strong product offering backed up by extensive product development and engineering resources and strong global service and support capability.”

Wellesley-Wesley concluded, “Excluding third quarter 2013 severance expense and a charge for the change in fair value of the Hego transaction contingent earn-out liability, we are generating positive cash and assuming a normalized level of operating expenses, we anticipate that our future results will show growth in operating profitability based on our current gross profit margin levels. I am optimistic for the future and believe shareholder patience will be rewarded.”