MELVILLE, N.Y.: Chyron cut its net loss to $482,000 in the third quarter, down from $840,000 a year ago. The broadcast graphics concern reported revenues of $6.88 million, up 8 percent from the year-ago quarter. Service revenues, including Axis online graphics, hardware and software maintenance agreements, training and creative services, were up 24 percent to $1.57 million for the quarter. Product revenues were $5.31 million.
“We were more than encouraged about our quarterly results, particularly as our financials met or exceeded our internal projections,” Chyron chief Michael Wellesley-Wesley said. “Operating expenses were down and both our operating loss and net loss narrowed considerably compared to the same quarter last year.”
Net loss per share was 2 cents versus 5 cents a year ago. Operating loss was $670,000 versus $1.14 million.
“Revenue showed single digit gains, an achievement on its own given that our customers have only started to emerge more fully from the protracted downturn that deeply impacted the sector for over two years,” Wellesley-Wesley said. “Most of our geographic markets also exhibited growth, including North and South America--with the most evident improvement being a 169 percent increase in Asia.”
Chyron responded to the economic recovery of capex spending by putting more boots on the ground, he said. The “customer facing team’ was increased by 14 percent. Four folks were added to research and development, bringing the total to 39.
“We expect these investments to begin bearing fruit in the fourth quarter and continue into 2011, which we believe holds the potential for stronger revenue growth,” Wellesley-Wesley said.
This year’s TV station windfall from political advertising, as well as the automotive recovery, is expected to translate into increased capex spending next year.
“Since the fourth quarter of 2008, Chyron has been riding out the recessionary storm by improving its technology assets,” the chief said. “We believe that we have weathered the storm and are now ready for liftoff. By all appearances, an inflection point was reached this quarter in the media markets we address, and what we have done, and continue to do, we believe readies us for the opportunities arising from the recovery.”
Chyron finished the quarter with $4.5 million in cash and equivalents, compared to $5.24 million as of Dec. 31, 2009. It listed no long-term debt. Shares of Chyron (NASDAQ: CHYR) shot up from $1.60 to $1.90 on news of its results.
-- Deborah D. McAdams
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