Haivision Announces Results for the Three Months and Six Months Ended April 30, 2024
Business Transformation Exceeds Expectations
"I am excited that our overall transformation of the business is exceeding our expectations," said
Q2 2024 Financial Results
- Revenue of
$34.2 largely consistent with prior year when normalized for the exit from the managed services business, and reflects our transformation away from offering bespoke "integrator" solutions that include lower margin, third-party components. - Gross Margins* were 71.7%, a notable improvement from 68.9% for the same prior year period.
- Total expenses were
$22.7 million , a decrease of$2.4 million , from the same prior year period. - Operating profit was
$1.8 million , a$2.8 million or 302% improvement from the same prior year period. - Adjusted EBITDA* was
$5.1 million , a$2.4 million or 92% improvement from the same prior year period. - Adjusted EBITDA Margins* was 14.8%, a notable improvement when compared to 7.5% for the same prior year period.
- Net income was
$0.9 million , a$2.4 million or 162% improvement from the same prior year period.
Financial Results for the six months ended
- Revenue of
$68.7 million , an increase of 3.7% when normalized for the exit from the managed services business. - Gross Margins* were 72.3%, a notable improvement from 67.8% for the same prior year period.
- Total expenses were
$45.6 million , a decrease of$3.2 million from the same prior year period. - Operating profit was
$4.1 million , a$6.1 million or 307% improvement from the same prior year period. - Adjusted EBITDA* was
$10.2 million , a$5.5 million or 116% improvement from the same prior year period. - Adjusted EBITDA Margins* was 14.9%, a notable improvement when compared to 6.9% for the same prior year period.
- Net income was
$2.2 million , a$5.1 million or 175% improvement from the same prior year period.
Key Company Highlights
- Celebrated its 20-years anniversary as a leader and innovator in mission critical live video.
- Unveiled Hub 360, a cloud-based master control solution that streamlines live production workflows.
- Published its fifth annual Broadcast Transformation Report, highlighting the state of technology adoption in the broadcast industry.
- Awarded "Single/Dual-Stream Encoding Hardware" and "Best On-Prem Encoding/ Transcoding Solution" for the Makito X4 by Streaming Media Readers' Choice Awards.
- Joined the
Panasonic Partner Alliance for live video production workflows with Kairos; joined the Sony Cloud Production Platform for low latency live video in the cloud; and partnered with Grabyo, aLondon -based live cloud production platform, enabling integrated solution for live multi-camera productions. - Announced strategic partnerships with
CP Communications , Flypack, RF Wireless Systems, and Vidovation to extend mobile video transmitters rental services intoNorth America . - Awarded the prestigious IBC Innovation Award 2023 in the Content Creation Category for its role as technical partner in the
BBC's coverage of the Coronation of KingCharles III . - Welcomed NVIDIA to the
SRT Alliance , withSRT Alliance membership at over 600 members. - Awarded TV Tech's Product Innovation Award for
Haivision's Pro 460 transmitters for technical excellence in M&E solutions. - Awarded Four-Star Best in Show award for
Haivision's Command 360 for Real-time Data Sharing at the DSEI 2023 show inLondon, England .
"Our continuing transition away from an integrator model in the control room space, which offered lower-margined, third-party components, has resulted in more stable and robust gross margins. However, that transition will be at the expense of top line revenue as we continue the transition to a manufacturer of proprietary products. said
Financial Results
Revenue for the three months and six months ended
Gross Margin* for the three months and six months ended
Total expenses for the three months and six months ended
The result of these Gross Margin* improvements and lower total expenses was operating profits for the three months and six months ended
Net income for the three months ended
*Measures followed by the suffix "*" in this press release are non-IFRS measures. For the relevant definition, see "Non-IFRS Measures" below. As applicable, a reconciliation of this non-IFRS measure to the most directly comparable IFRS financial measure is included in the tables at the end of this press release and in the Company's management's discussion and analysis for the three months and six months ended
Conference Call Notification
Financial Statements, Management's Discussion and Analysis and Additional Information
Forward-Looking Statements
This release includes "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of applicable securities laws, including, without limitation, statements regarding the Company's growth opportunities and its ability to execute on its growth strategy. In some cases, but not necessarily in all cases, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking statements. Forward-looking statements are not historical facts, nor guarantees or assurances of future performance but instead represent management's current beliefs, expectations, estimates and projections regarding future events and operating performance.
Forward-looking statements are necessarily based on opinions, assumptions and estimates that, while considered reasonable by
Non-IFRS Measures
About
Haivision is a leading global provider of mission-critical, real-time video streaming and visual collaboration solutions. Our connected cloud and intelligent edge technologies enable organizations globally to engage audiences, enhance collaboration, and support decision making. We provide high quality, low latency, secure, and reliable live video at a global scale. Haivision open sourced its award-winning SRT low latency video streaming protocol and founded the
Thousands of Canadian dollars (except per share amounts) |
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Three months ended
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Six months ended
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2024 |
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2023 |
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2024 |
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2023 |
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($) |
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($) |
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($) |
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($) |
||
Revenue |
34,169 |
|
35,112 |
|
68,748 |
|
69,178 |
||
Cost of sales |
9,658 |
|
10,912 |
|
19,044 |
|
22,307 |
||
Gross profit |
24,511 |
|
24,200 |
|
49,704 |
|
46,871 |
||
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Expenses |
|
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||
Sales and marketing |
6,978 |
|
8,111 |
|
13,633 |
|
15,512 |
||
Operations and support |
3,968 |
|
3,861 |
|
7,965 |
|
7,588 |
||
Research and development |
6,998 |
|
7,819 |
|
14,026 |
|
15,306 |
||
General and administrative |
4,027 |
|
4,603 |
|
8,918 |
|
9,300 |
||
Share-based payment |
695 |
|
720 |
|
1,042 |
|
1,096 |
||
|
|
|
|
|
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||
|
22,662 |
|
25,114 |
|
45,584 |
|
48,802 |
||
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||
Operating Profit (loss) |
1,845 |
|
(914) |
|
4,120 |
|
(1,931) |
||
Financial expenses |
244 |
|
340 |
|
543 |
|
944 |
||
|
|
|
|
|
|
|
|
||
Income (loss) before income taxes |
1,601 |
|
(1,254) |
|
3,577 |
|
(2,876) |
||
|
|
|
|
|
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||
Income taxes |
|
|
|
|
|
|
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||
Current |
504 |
|
487 |
|
1,343 |
|
144 |
||
Deferred |
165 |
|
(226) |
|
25 |
|
(87) |
||
|
669 |
|
261 |
|
1,368 |
|
58 |
||
|
|
|
|
|
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||
|
|
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|
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||
Net loss |
932 |
|
(1,515) |
|
2,209 |
|
(2,932) |
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Other comprehensive income (loss) |
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||
Foreign currency translation adjustment |
1,995 |
|
1,907 |
|
(581) |
|
2,668 |
||
Comprehensive income (loss) |
2,926 |
|
392 |
|
1,627 |
|
(265) |
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Net income (loss) per share: |
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Basic |
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Diluted |
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Weighted average number of shares outstanding |
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Basic |
29,152,541 |
|
29,004,453 |
|
29,090,446 |
|
28,943,698 |
||
Diluted |
30,311,651 |
|
29,004,453 |
|
30,130,367 |
|
28,943,698 |
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Thousands of Canadian dollars |
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As at |
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$ |
|
$ |
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Assets |
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Current assets |
|
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|
Cash |
11,189 |
|
8,285 |
|
Trade and other receivables |
24,655 |
|
26,113 |
|
Investment tax credits receivable |
2,221 |
|
2,238 |
|
Inventories |
16,394 |
|
18,930 |
|
Prepaid expenses and deposits |
4,766 |
|
4,043 |
|
|
59,225 |
|
59,609 |
|
|
|
|
|
|
Property and equipment |
3,587 |
|
3,900 |
|
Right-of-use assets |
6,582 |
|
7,494 |
|
Intangible assets |
14,195 |
|
17,668 |
|
|
45,927 |
|
46,219 |
|
Non-refundable investment tax credits receivable |
7,238 |
|
5,602 |
|
Deferred income taxes |
3,536 |
|
3,599 |
|
|
81,065 |
|
84,482 |
|
|
140,290 |
|
144,091 |
|
Liabilities |
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|
Current liabilities |
|
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|
Credit facility |
1,734 |
|
4,685 |
|
Trade and other payables |
14,517 |
|
17,534 |
|
Restructuring costs payable |
69 |
|
240 |
|
Purchase price payable |
204 |
|
204 |
|
Income taxes payable |
891 |
|
659 |
|
Current portion of lease liabilities |
1,681 |
|
1,688 |
|
Current portion of term loans |
1,123 |
|
964 |
|
Deferred revenue |
13,561 |
|
12,104 |
|
|
33,780 |
|
38,078 |
|
|
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|
Lease liabilities |
5,852 |
|
6,738 |
|
Long term debt |
1,446 |
|
2,101 |
|
Deferred revenue |
4,082 |
|
3,021 |
|
|
45,160 |
|
49,938 |
|
|
|
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|
Equity |
|
|
|
|
Share capital |
91,219 |
|
90,902 |
|
Retained earnings |
(7,739) |
|
(9,997) |
|
Share-based compensation and other reserves |
4,279 |
|
5,295 |
|
Cumulative translation adjustment |
7,371 |
|
7,953 |
|
|
95,130 |
|
94,153 |
|
|
140,290 |
|
144,091 |
|
|
|
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|
Thousands of Canadian dollars |
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Three months ended April 30, |
|
Six months ended
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|||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|||
|
($) |
|
($) |
|
($) |
|
($) |
|||
Net Income (loss) |
932 |
|
(1,515) |
|
2,209 |
|
(2,932) |
|||
Income Taxes |
669 |
|
261 |
|
1,368 |
|
58 |
|||
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Income (loss) before income taxes |
1,601 |
|
(1,254) |
|
3,577 |
|
(2,875) |
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Depreciation |
896 |
|
768 |
|
1,733 |
|
1,546 |
|||
Amortization |
1,637 |
|
2,069 |
|
3,345 |
|
4,037 |
|||
Financial expenses |
244 |
|
340 |
|
543 |
|
944 |
|||
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EBITDA (1) |
4,378 |
|
1,923 |
|
9,198 |
|
3,652 |
|||
|
|
|
|
|
|
|
|
|||
Share-based payments (LTIP) |
695 |
|
720 |
|
1,042 |
|
1,096 |
|||
|
|
|
|
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|||
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|||
Adjusted EBITDA (1) |
5,073 |
|
2,643 |
|
10,240 |
|
4,748 |
|||
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Adjusted EBITDA Margin(1) |
14.8 % |
|
7.5 % |
|
14.9 % |
|
6.9 % |
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________________________ |
Note: |
(1) Non-IFRS measure. See "Non-IFRS Measures." |
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