Chyron first-quarter revenues up 35% over last year
Chyron’s first quarter of 2007 saw a 35% gain in revenue, up to $6.5 million from $4.8 million reported for the first quarter of 2006. As compared to the first quarter of 2006, broadcast graphics revenue of $6.2 increased 35 percent and digital displays revenue of $0.3 million increased 28 percent. Net profit for the first quarter was $44,000, or $0.00 per share, as compared to 2006’s first quarter net loss of $511,000, or $0.01 per share.
Michael Wellesley-Wesley, Chyron President and C.E.O., commented” “I have stated previously that 2007 is the year that Chyron must deliver strong revenue growth and in that regard our first quarter year over year revenue gain of 35% represents a promising start. We now have to build upon this through the balance of the year. In 2006, we focused resources on developing many of the new products we launched at NAB in April. These products were very well received by our customers and I am hopeful that demand for these products will result in above trend revenue gains through 2007 and beyond. We expect to gain market share both domestically and internationally and with the launch of our channel branding and mobile products we now address a significantly enlarged market opportunity overall.”
“The first quarter has historically been one of the weaker trading periods of our year. I am, therefore, reasonably satisfied with net income of $44,000 as compared with a loss of $511,000 in the first quarter of 2006. However, on the assumption that our revenue growth begins to materialize through the balance of 2007 as anticipated, the operating leverage inherent in our business model should result in profit increases providing we maintain our gross margin at current levels and continue to keep a tight rein on operating expenses,” added Mr. Wellesley-Wesley.
Gross margins improved to 68 percent for first quarter 2007 as compared to 65 percent for the comparable prior year’s quarter. Operating expenses for the first quarter were $4.4 million, up $0.7 million from the first quarter of 2006, with $0.5 million of the increase in selling, general and administrative costs, up 18 percent, and $0.2 million of the increase in research and development costs, up 22 percent. Operating profit for the quarter was $16,000, which is the net of an operating profit of $570,000 for the broadcast graphics portion of the business and an operating loss of $554,000 for the digital display portion of the business.