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Espial Reports 2012 First Quarter Results
May 10, 2012 (04:05 PM EDT)
OTTAWA, May 10, 2012 /CNW/ - Espial® Group Inc. ("Espial" or the "Company"), (TSX: ESP), a leader in the delivery of on-demand TV software and services, today announced its first quarter financial results for the three-month period ended March 31, 2012.
For the three-month period ended March 31, 2012, the Company reported revenues of $3.7 million compared with revenues of $3.0 million for the three months ended March 31, 2011. Earnings before interest, foreign exchange, taxes, stock compensation, depreciation and amortization (EBITDA) for the first quarter of fiscal 2012 was $0.1 million gain compared with a loss of $0.6 million in the first quarter of fiscal 2011. Net loss for the quarter was $0.4 million or $0.03 per share, compared with a net loss of $1.1 million last year, or $0.08 per share.
"We had a good start to the fiscal year with a fourth consecutive quarter of positive EBITDA," said Jaison Dolvane, President and CEO. "We continued to see strong activity from pay-TV-service providers looking for solutions to enable IP video, multi-screen and OTT services. We released new versions of our Espial Media Service Platform and Espial MediaBase VOD products to provide advanced capabilities to help service providers deliver a rich multi-screen TV experience. These proven products have already been deployed by major service providers worldwide, positioning us to capitalize on the growing market opportunity. On the Smart TV front, we are starting shipping of our browser products with 2 major global TV brands establishing ourselves as a leading player in the SmartTV market."
Q1 Financial Results
Revenue for the first quarter of fiscal 2012 was $3,650,536 compared with revenues of $3,009,572 in the same period a year ago. First quarter software license and royalty revenues were $1,908,236 compared with software license and royalty revenues of $1,904,859 in the first quarter of fiscal 2011 Professional services for the first quarters of 2012 and 2011 were $962,025 and $382,821 respectively. Maintenance and support revenues for the first quarter were $780,275 compared with $721,892 last year.
Gross margin for the first quarter of fiscal 2012 was 77 percent compared with 75 percent in the first quarter of fiscal 2011.
Operating expenses for the first quarter of fiscal 2012 were $3,045,360 compared with $3,312,189 in the first quarter of fiscal 2011.
Earnings for first quarter of fiscal 2012 before interest, foreign exchange, taxes, stock compensation, depreciation and amortization (EBITDA) was $112,759 compared with a loss of $569,090 in fiscal 2011.
Net loss in the first quarter was $358,603 compared with a loss of $1,113,171 last year.
Cash and cash equivalents on March 31, 2012, was $10,537,566.
The Company will be hosting a conference call to discuss the first quarter 2012 results on May 11, 2012 at 10:00 a.m. Eastern Standard Time (EST). The phone number to join the results discussion is:
The playback for the call will be available until 11:59pm EST on June 8, 2012, at the following numbers and passcode:
About Espial (www.espial.com)
Espial is a leading supplier of digital TV and IPTV software and solutions to cable MSOs and telecommunications operators as well as consumer electronics manufacturers. Espial's middleware, video-on-demand, and browser products power a diverse range of pay-TV and Internet TV business models. Over 10 million licenses of its patented software are in use across the world. Espial is headquartered in Ottawa, Canada and has offices in the United States, Europe, and Asia. Visit www.espial.com or contact us via phone at +1 613 230 4770.
Forward Looking Statement
This press release contains information that is forward looking information with respect to Espial within the meaning of Section 138.4(9) of the Ontario Securities Act (forward looking statements) and other applicable securities laws. In some cases, forward-looking information can be identified by the use of terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or the negative of these terms or other similar expressions concerning matters that are not historical facts. In particular, statements about anticipated benefits of new customer and partner relationships, future opportunities for the company and products and any other statements regarding Espial's future expectations, beliefs, goals or prospects are or involve forward-looking information.
Forward-looking information is based on certain factors and assumptions. While the company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward-looking information, by its nature necessarily involves risks and uncertainties, including Espial's ability to effectively develop its distribution channels, and generate increased demand for its products. Additional risks and uncertainties affecting Espial can be found in Espial's Annual Report for the fiscal year ended December 31, 2011 and in its most recent quarterly report filed on SEDAR at www.sedar.com. If any of these risks or uncertainties were to materialize, or if the factors and assumptions underlying the forward-looking information were to prove incorrect, actual results could vary materially from those that are expressed or implied by the forward-looking information contained herein. Espial assumes no obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.
Non-IFRS Financial Measures
Earnings before interest, foreign exchange, taxes, stock compensation, depreciation and amortization (EBITDA) is a non-IFRS financial measure that does not have any prescribed meaning by IFRS and is therefore unlikely to be comparable to similar measures presented by other issuers. Management believes that this non-IFRS financial measure, when taken together with the corresponding consolidated IFRS measures, increases the transparency of the Company's current results and enables investors to more fully understand trends in its current and future performance. A reconciliation of net loss to earnings before interest, foreign exchange, taxes, stock compensation, dividends on redeemable preferred shares, depreciation and amortization is as follows:
ESPIAL GROUP INC.
ESPIAL GROUP INC.
SOURCE ESPIAL GROUP