Financials Taken from stockwatch:
Espial Group earns $1.27-million in 2015
2016-02-25 16:45 ET - News Release
Mr. Carl Smith reports
ESPIAL REPORTS FOURTH QUARTER AND FULL YEAR 2015 RESULTS
Transforming the viewing experience worldwide, Espialtrademark Group Inc. ("Espial" or the "Company"), (TSX:ESP), today announced its fourth quarter and full year financial results for the three and twelve month periods ended December 31, 2015.
Highlights
Increased revenue by 24% to a record $24.8 million in 2015; Adjusted EBITDA of $2.9 million in 2015; Fourth quarter revenue of $5.2 million; Fourth quarter adjusted EBITDA loss of $0.6 million; Secured two major European cable operators, serving around 5 million; subscribers Orange, a global mobile operator, launched Orange TV Stick in Romania and France with Espial's HTML5 Client software; Mike Hayashi, former Time Warner Cable Executive Vice President, joined Espial's board of directors; Acquired Bluestreak Technologies; Announced App partners providing apps for enhanced sports to games for our G4 Client; Launched Espial's Professional Services group.
"In 2015, we took several strides forward in executing our strategy. We secured two additional major cable operator wins and focused efforts on progressing the implementation of our solutions towards trials and deployments," said Jaison Dolvane, CEO, Espial. "We expanded our leadership team and our delivery capability, acquired Bluestreak, and deepened our engagement with several prospective customers."
"Subsequent to year end, one of our European cable operator customers began field trials with our G4 Client solution. Additionally, a North American cable operator has started commercially shipping 4K Ultra HD set-top boxes to their subscribers with Espial software. Both of these are already significant accomplishments in 2016," added Mr. Dolvane. "Our priorities in 2016 are to continue supporting our current customers' trial and deployment plans, and increase scale to address new wins. We have a good pipeline of new prospects, and believe now is the time to increase investment in our integration and support capabilities to ensure we successfully execute on this market opportunity."
Financial Summary
For the three-month period ended December 31, 2015, revenue was $5.2 million compared with revenue of $5.3 million for the three months ended December 31, 2014. Adjusted EBITDA loss for the fourth quarter of fiscal 2015 was $0.6 million compared to adjusted EBITDA income of $0.5 million for the fourth quarter of fiscal 2014. Net loss for the quarter was $1.0 million, compared with a net loss of $0.2 million for the fourth quarter of fiscal 2014.
For the fiscal year ended December 31, 2015, the Company reported revenue of $24.8 million compared with revenue of $20.0 million for the fiscal year ended December 31, 2014. Adjusted EBITDA income for fiscal 2015 was $2.9 million compared to $3.2 million for fiscal 2014. Net income for the year was $1.3 million, compared to $1.2 million last year.
Q4 Financial Results
Fourth quarter revenues were $5,209,206 compared with revenues of $5,258,593 in the same period a year ago. Fourth quarter software license and royalty revenues were $2,426,721 compared to $2,898,646 in the fourth quarter of fiscal 2014. Professional services for the fourth quarters of 2015 and 2014 were $1,576,139 and $1,100,466 respectively. Maintenance and support revenues for the fourth quarter were $1,206,346 compared to $1,259,481 last year.
North American revenues were $2,457,595 in the fourth quarter of 2015 compared to $1,665,761 in 2014. Asia revenues were $616,408 in the fourth quarter of 2015 compared to $1,984,378 in 2014. European revenues were $2,135,203 in the fourth quarter of 2015 compared to $1,608,454 in 2014.
Gross margin for the fourth quarter of fiscal 2015 was 66% compared with 84% in the fourth quarter of fiscal 2014.
Operating expenses in the fourth quarter of fiscal 2015 were $4,639,271 compared to $4,429,375 in the fourth quarter of fiscal 2014.
Earnings before interest, foreign exchange, taxes, stock compensation, depreciation and amortization (adjusted EBITDA) for the fourth quarter of fiscal 2015 was a loss of $582,572 compared to income of $544,971 in fiscal 2014.
Net loss, which includes non-cash items like depreciation, amortization of intangibles and stock compensation, in the fourth quarter was $1,012,696 compared to $161,231 last year.
Fiscal 2015 Financial Results
Total revenues for the fiscal year ended December 31, 2015 were $24,834,692 compared with revenues of $20,003,757, in the same period a year ago. Software license and royalty revenues for the 2015 fiscal year were $11,767,217 compared to $8,723,977 in fiscal 2014. Professional services for the fiscal years of 2015 and 2014 were $8,294,954 and $6,429,023 respectively. Maintenance and support revenues for the fiscal year ended December 31, 2015 were $4,772,521 compared to $4,850,757 last year.
North American revenues were $11,073,288 in the 2015 fiscal year compared to $8,038,906 in 2014. Asia revenues were $3,000,206 in the 2015 fiscal year compared to $4,771,042 in 2014. European revenues were $10,761,198 in the 2015 fiscal year compared to $7,193,809 in 2014.
Gross margin for the 2015 fiscal year was 74% compared with 79% in fiscal 2014.
Operating expenses for the 2015 fiscal year were $17,873,415 compared to $14,237,250 in fiscal 2014.
Adjusted EBITDA for the fiscal year ended December 31, 2015 was income of $2,907,404 compared to $3,170,985 in fiscal 2014.
Net income in the 2015 fiscal year was $1,272,008 compared to $1,171,885 in 2014.
Cash, restricted cash and cash equivalents on December 31, 2015, was $49,947,096
A complete set of financial statements and management's discussion and analysis for the period ended December 31, 2015 will be available at https://www.sedar.com.
Conference Call
The Company will be hosting a conference call to discuss the Q4 2015 financial results on February 25, 2016 at 5:00PM EDT and the phone number to join the results discussion is:
Toll Free line (Canada/US) 877-201-0168
Toll line (International/Local) 647-788-4901
The playback for the call will be available two hours after the call's completion and will be available until 11:59pm ET on March 25, 2016, at the following numbers and passcode:
Toll-free line: +1-855-859-2056 or +1-404-537-3406,
Passcode: 54895298
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Three months ended Twelve months ended Dec. 31, Dec. 31, 2015 2014 2015 2014 Revenue Software 2,426,721 2,898,646 11,767,217 8,723,977 Professional services 1,576,139 1,100,466 8,294,954 6,429,023 Support and maintenance 1,206,346 1,259,481 4,772,521 4,850,757 Total revenue 5,209,206 5,258,593 24,834,692 20,003,757 Cost of revenue 1,758,727 840,697 6,372,626 4,297,770 Gross margin 3,450,479 4,417,896 18,462,066 15,705,987 Expenses Sales and marketing 1,278,857 1,162,783 5,041,954 3,991,274 General and administrative 861,738 849,277 3,423,686 2,843,589 Research and development 2,306,297 2,254,322 8,730,666 6,756,519 Amortization of intangible assets 192,378 162,993 677,109 645,869 4,639,270 4,429,375 17,873,415 14,237,251 Income before other income (expense) (1,188,791) (11,479) 588,651 1,468,736 Interest income 131,826 131,942 647,959 205,653 Foreign exchange gain 89,339 36,136 309,408 82,476 Interest expense - - - (106,163) Income (loss) before taxes (967,626) 156,599 1,546,018 1,650,702 Income tax expense (45,069) (317,830) (274,010) (478,818) Net and comprehensive income (loss) (1,012,695) (161,231) 1,272,008 1,171,884 Earnings per common share - basic (0.04) 0.01 $0.04 0.05 Earnings per common share - diluted (0.04) 0.01 $0.04 0.05
We seek Safe Harbor.
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