03.30.2009 04:50 PM
Chyron Posts ’08 Profit on Tax Benefit
MELVILLE, N.Y.: Graphics stalwart Chyron Corp., said the worldwide transition to digital TV along with increasing HD upgrades helped drive an uptick in 2008 revenues. The company generated $34.3 million last year, up 6 percent from $32.3 million in 2007. Net income was $17.8 million, compared to $3.7 million the previous year, driven primarily by combined tax benefits of $18 million. Operating income was $1.2 million, down 54 percent from the $2.6 million posted in 2007. Chyron said profit dipped because of increased spending on R&D and marketing.
U.S. sales dominated Chyron’s (NASDAQ: CHYR) revenues for the year. U.S. customers spent $26 million in 2008 compared to $23.8 million in 2007. International sales generated $8.3 million compared to $8.5 million in 2007.
“The increase in total revenues was primarily due to strong demand during the first nine months of 2008 for our broadcast graphics and channel-branding systems and services,” the company stated in its earnings release. “This demand was driven in large part by the worldwide transition from analog to digital television and the increasingly widespread adoption of HDTV.”
For the fourth quarter ended Dec. 31, 2008, Chyron posted $6.7 million in revenues, down 28 percent from $9.3 million posted 4Q07. Net loss was $200,000, compared to net income of $2.1 million for 4Q07.
Shares of Chyron are trading at around $1.20 after briefly dipping below a dollar in early March. The company’s president and CEO, Michael Wellesley-Wesley, has been making purchases throughout the month, taking 1,327 shares at $1.20 last week in one trade, 50,000 at $1.05 and 1,683 for $1 in others. The previous week, Wellesley-Wesley purchased 1,000 shares of CHYR at $1. Director Michael Conrad Wheeler has recently purchased 2,000 shares at $1.18; and Chris Kelly, who holds a 10 percent share of Chyron, bought 3,166 shares at $1.07 and 11,000 shares at $1.02 in separate trades. The company has roughly 15.7 million outstanding shares and market cap of around $18.4 million. -- Deborah D. McAdams