ChyronHego Reports Q1 Increased Revenue but Continued Net Loss

14 Aug

SCRI's NewsBriefs

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ChyronHego reported that total revenue in Q1 increased by 2% to $8.01M.  However the company continues to report a net loss of $0.95M.  It appears that any significant impact of the rebranding of Chyron with Hego is yet to be seen, in spite of eliminating a number of Chyron positions primarily in the US in May and staving off delisting threatened by Nasdaq recently . These results are in line with those reported earlier in May  — Chyron Cuts Staff After Posting Continued Q1 Loss.

Michael Wellesley-Wesley, Chyron CEO, as can be expected,put a positive spin on events, stating that:

“We expect to close our acquisition of Hego AB on May 22, 2013. Hego is well managed, profitable and fast growing, and some of the public company costs that have hitherto been borne entirely by Chyron alone will now be allocated across the larger combined entity. In early April, we presented at the annual NAB Tradeshow for the first time introducing the ChyronHego brand and we experienced strong interest in our combined News and Sports product range. I expect to see this interest translate into revenue in the second half of 2013. Our reported first quarter performance shows a small year over year revenue increase and a small improvement in operating expense. However, if we strip out Hego related transaction costs a different picture begins to emerge. Excluding Hego transaction costs Chyron’s operating loss would have decreased 89% year over year. On May 2, 2013, we announced that we had reduced the workforce by a further 20 people for incremental annual operating expense savings of $3 million; this will result in a different and improved financial model.”

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