Espial Reports First Quarter 2017 Results
Transforming the viewing experience worldwide, Espial® Group Inc. ("Espial" or the "Company"), (TSX:ESP), today announced its first quarter financial results for the three month period ended March 31, 2017.
Highlights
- First quarter revenue of $8.7 million, an increase of 63% over the same period in 2016.
- First quarter adjusted EBITDA loss was $1.0 million.
- Tele Columbus, a major German cable operator with 3.7 million homes launched their “advanceTV” 4K service, powered by Espial’s cloud platform and device solutions.
- Extended our market leadership in RDK solutions, with new deployments, technology contributions, and innovations in process, product and organization, that will deliver lower risk and fast time to market for new set-top box services.
- Presented at the 2017 RDK Americas Summit in Denver, together with Tele Columbus showcasing their service to operators from Europe, Asia, North America & South America.
- Introduced new Espial Elevate features available to over 40 operators, including OTT Apps, advanced User Experience, wireless TV and IPTV capabilities on our shared cloud service.
- Launched five IPTV lab trials on Espial Elevate cloud service with operators in North America.
“We’re off to a good start in 2017,” said Jaison Dolvane, CEO Espial. “In Q1, our customers deploying Espial solutions, including NOS, Tele Columbus and several operators on the Espial Elevate shared cloud service, drove an increase in revenues of 63% over last year. Our Agile and DevOps software engineering processes have increased our velocity in delivering new features and updates to enhance subscriber experience and help our customers expand their footprint. We’re continuing to invest in our cloud and device products aimed at accelerating adoption of Espial solutions. In Q1, we progressed our sales pipeline further and believe we are well positioned to become a partner to major service providers for their next generation Pay TV platforms.”
Board Change
“Tawfiq Arafat has resigned from the Board and will not be standing for re-election at our upcoming Annual and Special Shareholder meeting to be held on June 13th” added Mr. Dolvane. “I wish to sincerely thank Tawfiq for the six years of guidance, insight and counsel he provided to Espial while on our Board.” The Board is in the process of reviewing candidates, to nominate for election at our upcoming shareholder meeting, who will compliment and strengthen the Espial board. Information concerning our Board nominees will be set forth in the Management Information Circular that will be delivered to shareholders and filed on SEDAR in advance of the meeting.
Financial Summary
For the three-month period ended March 31, 2017, revenue was $8.7 million compared with revenue of $5.3 million for the three months ended March 31, 2016. Adjusted EBITDA loss for the first quarter of fiscal 2017 was $1.0 million compared to adjusted EBITDA loss of $1.2 million for the first quarter of fiscal 2016. Net loss for the quarter was $1.8 million, compared with a net loss of $2.0 million for the first quarter of fiscal 2016.
Q1 Financial Results
- First quarter revenues were $8,664,010 compared with revenues of $5,323,982 in the same period a year ago. First quarter software license and royalty revenues were $5,025,351 compared to $2,440,739 in the first quarter of fiscal 2016. Professional services for the first quarters of 2017 and 2016 were $1,585,934 and $1,672,025 respectively. Maintenance and support revenues for the first quarter were $2,052,725 compared to $1,211,218 last year.
- North American revenues were $5,088,367 in the first quarter of 2017 compared to $803,782 in 2016. Asia revenues were $520,672 in the first quarter of 2017 compared to $1,113,020 in 2016. European revenues were $3,054,971 in the first quarter of 2017 compared to $3,407,180 in 2016.
- Gross margin for the first quarter of fiscal 2017 was 74% compared with 64% in the first quarter of fiscal 2016.
- Operating expenses in the first quarter of fiscal 2017 were $8,130,367 compared to $5,194,090 in the first quarter of fiscal 2016.
- Earnings before interest, foreign exchange, taxes, stock compensation, depreciation and amortization (adjusted EBITDA) for the first quarter of fiscal 2017 was a loss of $987,182 compared to loss of $1,166,501 in fiscal 2016.
- Net loss, which includes non-cash items like depreciation, amortization of intangibles and stock compensation, in the first quarter was $1,799,947 compared to a loss of $1,967,532 last year.
Cash and cash equivalents on March 31, 2017, was $41,707,814.
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