OTTAWA, Oct. 22, 2013 /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
third quarter financial results for the three month period ended
September 30, 2013.
Q3 Espial Highlights
Signed a multi-year, multi-million dollar contract with a Tier 1 North
American cable operator to deploy Espial RDK software solutions
including the Espial G4 Application Framework and Espial G4 User
Experience across multi-platform set-top boxes, TVs, Tablets and
A leading Asian chipset vendor selected Espial TV Browser to power
millions of Smart TVs.
2 Smart TV manufacturers committed to shipping TVs with Espial browser
software starting Q4, 2013.
Revenue of $3.8 million, a 68% sequential increase over the previous
EBITDA earnings of $0.2 million compared to a loss of $1.5 million in
the previous quarter.
"Overall, we are pleased with our financial results for Q3 and with the
momentum we picked up with significant customer wins in the service
provider and Smart TV markets. We signed major contracts with a North
American Tier 1 Cable operator, one of the industry's leading Smart TV
chipset vendors along with 2 global Smart TV manufacturers who will
begin shipping in Q4 2013. These contracts are significant financial
and industry wins for us" said Jaison Dolvane, CEO, Espial. "Our
leadership in HTML5 user experience and RDK solutions - a new set-top
software initiative driven by the cable community - have been key
factors in securing these recent wins. Our European customers are also
beginning to increase investments in upgrading and extending their TV
platforms. Overall, we remain optimistic about our business moving
forward and feel that Espial is well positioned to capitalize on
Service Provider and Smart TV opportunities to build and deliver their
next generation video & TV services."
For the three-month period ended September 30, 2013, the Company
reported revenues of $3.8 million compared with revenues of $3.1
million for the three months ended September 30, 2012. Earnings before
interest, foreign exchange, taxes, stock compensation, depreciation and
amortization (EBITDA) for the third quarter of fiscal 2013 was earnings
of $0.2 million compared with a loss of $0.2 million in the third
quarter of fiscal 2012. Net loss for the quarter was $0.3 million or
$0.02 per share, compared with a net loss of $0.8 million last year, or
$0.06 per share.
Q3 Financial Results
Revenue for the third quarter of fiscal 2013 was $3,825,306 compared
with revenues of $3,070,677 in the same period a year ago. Third
quarter software license and royalty revenues were $2,209,553 compared
with software license and royalty revenues of $1,924,453 in the third
quarter of fiscal 2012. Professional services revenue for the third
quarters of 2013 and 2012 were $484,676 and $275,816 respectively.
Maintenance and support revenues for the third quarter were $1,131,077
compared with $870,408 last year.
European revenues were $1,114,031 in the third quarter of 2013 compared
to $1,916,897 in 2012. Asia revenues were $1,876,136 in the third
quarter of 2013 compared to $354,998 in 2012. North American revenues
were $835,139 in the third quarter of 2013 compared to $798,782 in
Gross margin for the third quarter of fiscal 2013 was 82 percent
compared with 83 percent in the third quarter of fiscal 2012.
Operating expenses for the third quarter of fiscal 2013 were $3,185,697
compared with $3,127,787 in the third quarter of fiscal 2012.
Earnings for the third quarter of fiscal 2013 before interest, foreign
exchange, taxes, stock compensation, depreciation and amortization
(EBITDA) was $231,914 compared with a loss of $183,730 in the third
quarter of fiscal 2012.
Net loss in the third quarter was $273,284 compared with a loss of
$778,920 last year.
Cash and cash equivalents on September 30, 2013, was $3,003,045.
A complete set of financial statements for the period ended September
30, 2013 will be available at http://www.espial.com.
About Espial (www.espial.com)
Espial is a leading supplier of digital TV and IPTV software and
solutions to service providers 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 35 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 or assumptions about,
anticipated investments by our European customers in upgrading and
extending their TV platforms, Espial's business moving forward and
Espial's ability to capitalize on Service Provider and Smart TV
opportunities to build and deliver their next generation video & TV
services and any other statements regarding Espial's objectives (and
strategies to achieve such objectives), 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 known
and unknown risks and uncertainties. A number of factors could cause
actual results to differ materially from those in the forward-looking
statements or could cause our current objectives and strategies to
change, including but not limited to changing conditions and other
risks associated with the on-demand TV software industry and the market
segments in which Espial operates, competition, Espial's ability to
effectively develop its distribution channels and generate increased
demand for its products, economic conditions, technological change,
unanticipated changes in our costs, regulatory changes, litigation, the
emergence of new opportunities, many of which are beyond our control
and current expectation or knowledge.
Additional risks and uncertainties affecting Espial can be found in
Management's Discussion and Analysis of Results of Operations and
Financial Condition for the fiscal year ended December 31, 2012 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 and our current objectives or strategies may change.
Espial assumes no obligation to update or revise any forward looking
statements, whether as a result of new information, future events or
otherwise, except as required by law. 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:
September 30, 2013
September 30, 2012
Net loss and Comprehensive loss
Depreciation of property and equipment
Amortization of intangibles
Net interest income (expense)
Foreign exchange gain (loss)
Earnings before interest, foreign exchange, taxes, stock
compensation, depreciation and amortization
SOURCE: ESPIAL GROUP
For further information:
For inquiries from the financial press or analysts, contact:
Chief Financial Officer
Espial Group Inc.
Phone: +1 613-230-4770
Espial Group Inc.
Phone: +1-613-230-4770 x1145