Post by
barneyj44 on Feb 22, 2018 4:17pm
Espial numbers out
OTTAWA, Ontario--(BUSINESS WIRE)--Feb. 22, 2018-- Espial Group Inc. ("Espial" or the "Company"), (TSX:ESP), today announced its fourth quarter financial results for the three-month period ended December 31, 2017. Recent Highlights Fourth quarter revenue was $10.2 million. Software-as-a-Service (SaaS) subscription revenue from our recently introduced Elevate SaaS video platform for the quarter was $1.0 million. Fourth quarter adjusted EBITDA1 of $0.9 million. Net income was $0.2 million For the year revenues were up 17% to $33.4 million from $28.6 million last year. Announced a North American cable company with over 1 million subs selected our Elevate SaaS video platform Announced Eastlink, a leading service provider in Eastern Canada, selected our Elevate SaaS video platform. Announced 8 additional North American service providers, including Buckeye Broadband, Spanish Fork, Elijay, Clear Creek, Summit, Hiawatha Broadband, Optic, and MCTV, that are using the Elevate SaaS video platform to power their video service. Signed a strategic deal with Netflix to seamlessly bring Netflix to operators on our Elevate SaaS video platform. Introduced Amazon Alexa voice capabilities for our Elevate SaaS video platform. Formed a partnership with Google, to introduce YouTube support for all operators on the Elevate SaaS video platform. Expanded our North American sales team to focus on sales growth of the Elevate SaaS video platform. This was our first quarter of Software-as-a-Service (SaaS) revenue since introducing our Elevate SaaS video platform in Q3. We are pleased with the early reception we have seen from service providers for this offering, said Jaison Dolvane, CEO, Espial. We believe that Pay TV service providers need to continue to innovate and Espials Elevate platform helps them compete effectively with next generation TV services. The many advantages that a SaaS solution provides customers, including the ability to respond to changes and threats quickly, and to adopt to new technologies and future proof themselves in this new dynamic video market, is driving rapid interest and adoption. Financial Summary For the three-month period ended December 31, 2017, revenue was $10.2 million compared with revenue of $12.8 million for the three months ended December 31, 2016. Adjusted EBITDA for the fourth quarter of fiscal 2017 was $0.9 million compared to $3.2 million for the fourth quarter of fiscal 2016. Net income for the quarter was $0.2 million, compared with net income of $2.5 million for the fourth quarter of fiscal 2016. Q4 Financial Results Fourth quarter revenue was $10,157,477 compared with revenue of $12,753,702 in the same period a year ago. Fourth quarter software license and royalty revenue was $6,081,188 compared to $9,752,798 in the fourth quarter of fiscal 2016. Software subscription revenue from our Elevate SaaS video platform was $1,032,115. This is a new source of revenue for us and the first quarter we have reported it. Professional services revenue for the fourth quarters of 2017 and 2016 were $974,680 and $1,096,364, respectively. Maintenance and support revenue for the fourth quarter was $2,069,494 compared to $1,904,540 last year. North American revenues were $6,163,111 in the fourth quarter of 2017 compared to $7,758,240 in 2016. Asia revenues were $2,172,748 in the fourth quarter of 2017 compared to $782,798 in 2016. European revenues were $1,821,618 in the fourth quarter of 2017 compared to $4,212,664 in 2016. Gross margin for the fourth quarter of fiscal 2017 was 77% compared to 82% the fourth quarter of fiscal 2016. Operating expenses in the fourth quarter of fiscal 2017 were $7,650,090 compared to $7,986,116 in the fourth quarter of fiscal 2016. Adjusted EBITDA for the fourth quarter of fiscal 2017 was $863,929, compared to $3,244,668 in fiscal 2016. Net income, which includes non-cash items like depreciation, amortization of intangibles and stock compensation, in the fourth quarter was $227,794 compared to $2,474,708 last year. Fiscal 2017 Financial Results Total revenue for the fiscal year ended December 31, 2017 was $33,433,064 compared with revenue of $28,644,570 in the same period a year ago. Software license and royalty revenue for the 2017 fiscal year was $17,919,074 compared to $18,142,077 in fiscal 2016. Software subscription revenue from our Elevate SaaS video platform, new in Q4, was $1,032,115. Professional services revenue for the fiscal years of 2017 and 2016 was $6,029,779 and $4,614,199, respectively. Maintenance and support revenue for the fiscal year ended December 31, 2017 was $8,452,096 compared to $5,888,294 last year. North American revenues were $19,665,586 in the 2017 fiscal year compared to $11,383,936 in 2016. Asia revenues were $4,497,459 in the 2017 fiscal year compared to $3,330,831 in 2016. European revenues were $9,270,019 in the 2017 fiscal year compared to $13,929,803 in 2016. Gross margin for the 2017 fiscal year was 74% compared to 75% in fiscal 2016. Operating expenses for the 2017 fiscal year were $32,784,839 compared to $26,028,495 in fiscal 2016. Adjusted EBITDA for the fiscal year ended December 31, 2017 was a loss of $4,966,478 compared to a loss of $1,899,798 in fiscal 2016. Net loss in the 2017 fiscal year was $8,522,959 compared to a net loss of $4,874,769 in 2016. Cash and cash equivalents on December 31, 2017 was $38,813,911.