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.
HIGHLIGHTS:
- Q1 2012 revenue of $3.7 million
with EBITDA of $0.1 million.
- Fourth consecutive quarter of positive EBITDA.
- Sharp and Toshiba started shipping Espial TV Browser-enabled
Smart TVs.
- KDDI, a major Japanese operator, has started deploying set-top
boxes powered by Espial's TV Browser to power its HTML5- based user
experience.
- New Product Releases for Espial Media Service Platform and
Espial MediaBase VOD Products announced at IP & TV World Forum
in London.
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:
- Toll free line (Canada/US) - +1 888-231-8191
- Toll line (international/local) - +1 647-427-7450
The playback for the call will be available
until 11:59pm EST on June 8, 2012, at the following numbers and
passcode:
- Toll line: +1 416-849-0833, Passcode: 72892960
- Toll-free line: +1-855-859-2056, Passcode: 72892960
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:
| |
March 31 2012 |
March
31 2011 |
| |
|
|
| |
(3 months) |
(3 months) |
| |
(unaudited) |
(unaudited) |
| |
|
|
| Net loss and Comprehensive loss |
(358,603) |
($1,113,171) |
| Add |
|
|
| |
Stock compensation |
21,457 |
155,727 |
| |
Depreciation of property and equipment |
43,055 |
43,971 |
| Amortization
of intangibles |
285,467 |
286,122 |
| |
(8,624) |
(627,351) |
| Less (add) |
|
|
| Interest income (expense) |
(120,345) |
(116,790) |
| Foreign
exchange gain (loss) |
(1,038) |
58,529 |
Earnings before interest, foreign exchange,
taxes,
stock compensation, depreciation and
amortization |
$112,759 |
($569,090) |
ESPIAL GROUP INC.
Consolidated Balance Sheet
(in Canadian dollars)
| |
|
|
|
|
| |
March
31, 2012
(unaudited) |
December
31, 2011
(unaudited) |
| |
|
|
|
|
| CURRENT ASSETS |
|
|
|
|
| |
Cash and cash equivalents |
$ |
10,537,566 |
$ |
10,559,262 |
| |
Short-term investments (Note 3)
|
|
110,000 |
|
110,000 |
| |
Accounts receivable (Note 12) |
|
2,323,431 |
|
3,420,583 |
| |
Investment tax credits receivable
|
|
375,000 |
|
300,000 |
| |
Prepaid expenses and other assets
|
|
182,349 |
|
192,873 |
| |
|
13,528,346 |
|
14,582,718 |
|
|
|
|
|
|
| Property and equipment
|
|
592,934 |
|
605,623 |
| Intangible assets
|
|
1,862,132 |
|
2,147,598 |
| Goodwill |
|
3,340,808 |
|
3,340,808 |
| |
$ |
19,324,220 |
$ |
20,676,747 |
| |
|
|
|
|
| CURRENT LIABILITIES |
|
|
|
|
| |
Operating line (Note 9) |
$ |
1,500,329 |
$ |
1,500,493 |
| |
Accounts payable and accrued liabilities |
|
1,168,813 |
|
2,146,162 |
| |
Deferred revenue |
|
2,282,577 |
|
2,361,014 |
| |
|
4,951,719 |
|
6,007,669 |
| Long term debt (Note 8) |
|
3,134,897 |
|
3,094,328 |
| Total Liabilities |
|
8,086,616 |
|
9,101,997 |
| |
|
|
|
|
| COMMITMENTS (Note 7) |
|
|
|
|
| SHAREHOLDERS' EQUITY |
|
|
|
|
| |
Share capital (Note 4) |
|
74,861,877 |
|
74,861,877 |
| |
Warrants (Note 4) |
|
732,382 |
|
732,382 |
| |
Contributed surplus |
|
11,861,080 |
|
11,839,623 |
| |
Deficit |
|
(76,217,735) |
|
(75,859,132) |
| |
|
11,237,604 |
|
11,574,750 |
| |
$ |
19,324,220 |
$ |
20,676,747 |
ESPIAL GROUP INC.
Consolidated Statements of Loss and Comprehensive Loss
(in Canadian dollars except share data)
|
Three Months Ended |
|
|
March
31,2012
(unaudited) |
March 31, 2011
(unaudited) |
| Revenue |
$ |
3,650,536 |
$ |
3,009,572 |
| Cost of
revenue |
|
842,397 |
|
752,293 |
| Gross
margin |
|
2,808,139 |
|
2,257,279 |
| Expenses |
|
|
|
|
| |
Sales and marketing |
|
1,051,167 |
|
1,150,803 |
| |
General and administrative |
|
452,094 |
|
433,468 |
| |
Research and development |
|
1,192,119 |
|
1,242,098 |
| |
Stock compensation expense |
|
21,457 |
|
155,727 |
| |
Depreciation of property and equipment |
|
43,055 |
|
43,971 |
| |
Amortization of
intangible assets |
|
285,467 |
|
286,122 |
| |
|
3,045,359 |
|
3,312,189 |
| Loss before
other income (expense) |
|
(237,220) |
|
(1,054,910) |
| Other income (expense) |
|
|
|
|
| |
Interest income (expense) |
|
(120,345) |
|
(116,790) |
| |
Foreign exchange gain
(loss) |
|
(1,038) |
|
58,529 |
| |
|
(121,383) |
|
(58,261) |
| NET LOSS
AND COMPREHENSIVE LOSS |
$ |
(358,603) |
$ |
(1,113,171) |
| |
|
|
|
|
| Net loss per common share - basic and
diluted |
$ |
(0.03) |
$ |
(0.08) |
Weighted average number of common
shares
outstanding - basic and diluted |
|
14,106,829 |
|
14,101,829 |
SOURCE ESPIAL GROUP
