Chyron Posts Increased Sales and Loss for 4Q
March 11, 2010
MELVILLE, N.Y.: Chyron sales revenues were up for the fourth
quarter, both sequentially and year-over-year. The TV graphics specialist
posted revenues of $7.2 million for the quarter ending Dec. 31, up 7 percent
over last year and 13 percent over 3Q09. Net loss was $312,000, compared to
$243,000 a year ago and $800,000 for 3Q09. Services, inclusive of the Web-based
Axis graphics platform, contributed $1.2 million to revenues, up 14 percent
Operating expenses were nearly $5 million compared to $5.1 million a year
earlier. Research and development spending increased 9 percent to $1.6 million
in good part due to costs related to the cloud-computed Axis graphics service.
Chyron realized net savings of around $400,000 from layoffs and pay cuts
imposed in the third quarter.
For the full year, Chyron posted revenues of $25.6 million, down 25 percent
from 2008. Net loss was $3.1 million compared to a profit of $17.8 million for
2008, which included a tax benefit of $16.6 million. Services contributed $4.8
million in 2009, up 30 percent from 2008. Product revenues were $20.8 million,
down 32 percent.
Chyron chief Michael Wellesley-Wesley said, “Many of our customers, we believe,
continued to contain spending due to global economic conditions during 2009... Our
focus on the cloud helped to keep revenue from even steeper erosion during the
recession of 2009.... We believe that this is key because we are working to
reinvent our core business by transitioning from a products company to a services
company, specifically to a cloud services company.
Chyron (NASDAQ: CHYR) finished 2009 with $5.2 million in cash, down just
$100,000 from the first of the year. Shares have increased about 5 percent year
to date to $2.18.
In a separate item, Chyron announced that Susan Clark-Johnson had joined the
board of directors. Clark-Johnson is executive director of the Morrison
Institute for Public Policy at Arizona State University. She retired as president
of the Gannett Newspaper Division in May, 2008 after 41 years in a variety of
news and executive leadership roles with the company.