Chyron Posts 2Q Loss on Contracted Broadcast Spending

MELVILLE, N.Y.: Chyron’s second quarter reflected the halt on capital spending in the broadcast industry. The graphics innovator posted a loss of $1.1 million, or 7 cents a share, on revenues of $5.8 million for the quarter ending June 30. Revenues were down 42 percent compared to the same quarter a year ago, when Chyron (NASDAQ: CHYR) posted net income of $1.1 million. Operating loss for the quarter was $1.4 million as compared to operating income of $1.2 million for the second quarter of 2008.

For the six months ending June 30, 2009, revenues were $12.1 million, down 34 percent from last year. Net loss was $2 million, compared to a profit of $1.4 million a year ago. Operating loss for the six months was $2.5 million as compared to operating income of $1.3 million for the first six months of 2008.

“Our second quarter results were as we expected and reflect the severity of the global media recession and sharp declines in all categories of TV advertising spending,” said Michael Wellesley-Wesley, Chyron president and CEO. “Many of our broadcast customers have curtailed their capital equipment spending and have deferred or cancelled planned upgrade programs. We have adjusted to this new reality by reducing headcount, cutting salaries and taking other expense control measures while continuing to emphasize investment in R&D and product development. We view this period as an opportunity to build a strong foundation for future growth.”

Wellesley-Wesley said the company’s Axis on Demand online graphics platform continued to gain traction.

“I expect other major TV station groups to join Fox and Gannett as Axis customers in 2009,” he said. “Our broadcast customers know they have to reduce their costs. Many are considering how to replace their traditional high fixed cost business model with exactly the kind of variable, low cost model that we believe AXIS represents and the stunning cost savings that Axis can deliver. We believe that Axis gives us first mover advantage; our goal is to build on this aggressively to emerge as a leader in 2010.”

Shares of Chyron were trading at $1.25 in mid-afternoon.
-- Deborah D. McAdams

More TVB coverage of Chyron’s results:
March 30, 2009: “Chyron Posts ’08 Profit on Tax Benefit”
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.

January 17, 2008: “Chyron Acquires Axis Graphics for $3 Million”
Chyron, the Melville, N.Y. firm specializing in graphics for broadcast television, has acquired New York-based Axis Graphics for $3 million in cash and stock. Chyron will leverage the online graphics capabilities of Axis to create Chyron Online.