Espial Group earns $2.2-million in Q3 2015
2015-10-28 16:13 ET - News Release
Mr. Carl Smith reports
ESPIAL REPORTS 2015 THIRD QUARTER RESULTS
Espial Group Inc. has released its third quarter financial results for the three-month and nine-month periods ended Sept. 30, 2015.
Espial Q3 Highlights
- Record quarterly revenue of $8.7 million
- Adjusted EBITDA income of $2.3 million
- Tele Columbus selected Espial to provide software and services for their next-generation, IP video services solution
- Debuted our G4 STB Client solution for IPTV/Telco operators at IBC in Amsterdam
- Integrated our G4 STB Client with Metrological, a leading provider of cloud-based applications to operators
- Record attendance at Espial's 2015 Asia-Pac Seminar in Tokyo, Japan
"We had a very strong quarter with record revenue and EBITDA," said Jaison Dolvane, CEO, Espial. "In Q3, we secured a significant software license order for deployment by a North American cable operator, expanded our relationship with Tele Columbus, a major German cable operator customer, and launched our G4 product for Telcos. We continued to make progress on our pipeline and believe we are well situated for the change occurring in the industry."
"In Q3, we delivered software licenses for current generation and new 4k set-top boxes to a channel partner for deployment at a North American cable operator. The same operator is currently working on its next generation platform and we have been informed that this operator does not intend to deploy our software as previously contemplated and we are in discussions regarding this. We continue to work with our channel partner and operator to improve current user experience and deliver 4K Ultra High Definition on its current platform."
Financial Summary
For the three-month period ended September 30, 2015, the Company is reporting revenue of $8.7 million compared with revenue of $5.1 million for the three months ended September 30, 2014. Adjusted EBITDA income for the third quarter of fiscal 2015 was $2.3 million compared to $0.7 million for the third quarter of fiscal 2014. Net income for the quarter was $2.2 million, compared with net income of $0.2 million last year. Adjusted net income for the third quarter was $2.7 million compared to adjusted net income of $0.7 million last year.
Q3 Financial Results
Third quarter revenues were $8,709,354 compared with revenues of $5,057,826 in the same period a year ago. Third quarter software license and royalty revenues were $5,217,518 compared to $1,288,712 in the third quarter of fiscal 2014. Professional services for the third quarters of 2015 and 2014 were $2,146,008 and $2,556,776 respectively. Maintenance and support revenues for the third quarter were $1,345,828 compared to $1,212,338 last year.
North American revenues were $5,696,380 in the third quarter of 2015 compared to $2,141,731 in 2014. Asia revenues were $694,704 in the third quarter of 2015 compared to $659,185 in 2014. European revenues were $2,318,270 in the third quarter of 2015 compared to $2,256,910 in 2014.
Gross margin for the third quarter of fiscal 2015 was 77% compared with 72% in the third quarter of fiscal 2014.
Operating expenses in the third quarter of fiscal 2015 were $4,941,261 compared to $3,501,456 in the third quarter of fiscal 2014.
Earnings before interest, foreign exchange, taxes, stock compensation, depreciation and amortization (adjusted EBITDA income) for the third quarter of fiscal 2015 was $2,333,471 compared to $718,244 in fiscal 2014.
Net income, which includes non-cash items like depreciation, amortization of intangibles and stock compensation, in the third quarter was $2,203,314 compared to $213,970 last year.
Cash, restricted cash and cash equivalents on September 30, 2015, was $47,516,284
A complete set of financial statements and management's discussion and analysis for the quarter ended September 30, 2015 will be available at https://www.sedar.com.
Conference Call
The Company will be hosting a conference call to discuss the Q3 2015 financial results on October 28, 2015 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 November 28, 2015, at the following numbers and passcode:
Toll-free line: +1-855-859-2056 or +1-404-537-3406, Passcode: 61236138
Consolidated Statements of Income and Comprehensive Income(In Canadian dollars) Three Months Ended Nine months Ended September 30,2015 September 30,2014 September 30,2015 September 30,2014 Revenue Software $ 5,217,518 $ 1,288,712 $ 9,340,496 $ 5,825,331 Professional services 2,146,008 2,556,776 6,718,815 5,328,557 Support and maintenance 1,345,828 1,212,338 3,566,175 3,591,276 Total revenue 8,709,354 5,057,826 19,625,486 14,745,164 Cost of revenue 1,971,800 1,392,225 4,613,899 3,457,073 Gross margin 6,737,554 3,665,601 15,011,587 11,288,091 Expenses Sales and marketing 1,414,264 981,570 3,763,098 2,828,491 General and administrative 868,960 813,345 2,561,948 1,994,310 Research and development 2,502,968 1,545,203 6,424,368 4,502,197 Amortization of intangible assets 155,069 161,338 484,730 482,877 4,941,261 3,501,456 13,234,144 9,807,875 Income before other income (expense) 1,796,293 164,145 1,777,443 1,480,216 Interest income 95,093 34,796 220,068 46,340 Foreign exchange gain 410,628 52,252 516,135 73,712 Interest expense - - - (106,163) Income before taxes 2,302,014 251,193 2,513,646 1,494,105 Income tax expense (98,700) (37,223) (228,942) (160,989) Net income and comprehensive income $ 2,203,314 $ 213,970 $ 2,284,704 $ 1,333,116 Earnings per common share - basic $ 0.06 $ 0.01 $ 0.07 $ 0.06 Earnings per common share - diluted $ 0.06 $ 0.01 $ 0.07 $ 0.05