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Chyron Reports Financial Results for the Fourth Quarter and Full Year 2012

Chyron Reports Financial Results for the Fourth Quarter and Full Year 2012 
MELVILLE, NY -- (Marketwire) -- 03/11/13 --  Chyron Corporation
(NASDAQ: CHYR), a leading provider of Graphics as a Service for
on-air and digital video applications, today announced its financial
results for the fourth quarter and full year ended December 31, 2012. 
Fourth Quarter and Full Year 2012 Financial Highlights include: 


 
--  Q4 2012 revenues decreased 9% to $7.4 million compared to $8.1 million
    in Q4 2011;
--  Q4 2012 service revenues increased 6% to $2.2 million compared to $2.1
    million in Q4 2011;
--  Product revenues were down 13% to $5.2 million in Q4 2012 versus $6.0
    million in Q4 2011;
--  Full year 2012 revenues decreased 4% to $30.2 million versus $31.6
    million in 2011;
--  Full year service revenues increased 11% in 2012 to $8.5 million
    versus $7.7 million in 2011;
--  Full year 2012 product revenues decreased 9% to $21.7 million compared
    to $23.9 million in 2011;

  
Michael Wellesley-Wesley, Chyron CEO commented; "While somewhat
disappointing, our fourth quarter financial results were in line with
our experience of 2012 as a whole and similar from an end user demand
standpoint to conditions being reported by our principal competitors.
Demand weakened in the second half of 2012 and didn't have a
meaningful recovery in the fourth quarter. We believe that revenue
growth in our traditional mature segments is achievable only through
competitive wins and the current depressed and price competitive
environment suggests that we will need to move in a different
direction for us to rebuild shareholder value. Our industry will
consolidate over the next 2-3 years in response to the rapid
technology changes currently impacting the broadcast space. There are
pockets of strong growth that we need to address and the best way to
achieve growth is through alliances, partnerships and acquisitions." 
Fourth Quarter 2012 Financial Results 
Revenues for the fourth quarter decreased 9% to $7.4 million compared
to $8.1 million in the fourth quarter of 2011.  
Product sales for the fourth quarter decreased 13% to $5.2 million
compared to $6.0 million in the comparable quarter of 2011. Service
revenues, which include revenues from the Company's AXIS cloud-based
graphics service, as well as systems hardware and software
maintenance agreements, systems commissioning, training and creative
services, increased 6% to $2.2 million from $2.1 million in the
comparable quarter last year. Service revenues as a percentage of
total revenues for the fourth quarter of 2012 were 29% as compared to
25% in the prior year's fourth quarter.  
Gross profit margin for the fourth quarter decreased to 69.1%
compared to 71.4% in last year's fourth quarter. Operating expenses
for the quarter were $5.7 million compared to $6.2 million in the
comparable quarter of 2011, representing a decrease of 8%. The
Company had an operating loss of $0.57 million for the fourth quarter
of 2012 compared to an operating loss of $0.43 million in the fourth
quarter of 2011. 
The Company recorded a net loss of $20.0 million, or $(1.17) per
diluted share, in the fourth quarter of 2012 compared to a net loss
of $0.4 million, or $(0.02) per diluted share, in the fourth quarter
of 2011. Included in the $20.0 million net loss was a $19.5 million
valuation allowance against the Company's deferred tax assets as
explained in more detail below. 
Full Year 2012 Results 
Revenues for full year 2012 decreased 4% to $30.2 million compared to
$31.6 million in 2011.  
Product revenues in 2012 decreased 9% to $21.7 million compared to
$23.9 million in full year 2011. Product revenues as a percentage of
total revenues for 2012 were 72% as compared to 76% in 2011.  
Service revenues for the full year, which include revenues from the
Company's AXIS cloud-based graphics service, as well as systems
hardware and software maintenance agreements, system commissioning,
training and creative services, increased 11% to $8.5 million from
$7.7 million in 2011. Service revenues as a percentage of total
revenues for 2012 were 28% as compared to 24% in 2011.  
Gross profit margin for full year 2012 decreased to 69.2% compared to
70% in 2011. Operating expenses for full year 2012 were $24.7 million
compared to $24.1 million in 2011, representing an increase of 2%,
primarily driven by 10% higher research and development expenses and
4% higher sales and marketing expenses, offset somewhat by 12% lower
general and administrative expenses. The Company had an operating
loss of $3.7 million in 2012 compared to an operating loss of $1.9
million in 2011. 
For the full year 2012 the Company recorded a net loss of $22.3
million compared to a net loss of $4.2 million in full year 2011. As
required by generally accepted accounting principles, the Company's
management assessed the likelihood that the Company's deferred tax
assets will be realizable in the future. In making this assessment
management considered all available evidence, both positive and
negative, in determining whether it is more likely than not that the
de
ferred tax assets will be realized. Management considered that the
Company incurred a loss in 2012 and preceding fiscal years, and that
near-term market and economic conditions remain uncertain, thereby
reducing management's ability to reliably project future taxable
income in determining the realizability of the Company's deferred tax
assets. Based on management's evaluation, the Company recorded a
$19.5 million charge to its income tax provision and a corresponding
decrease in deferred tax assets to recognize a valuation allowance
against those deferred tax assets. This $19.5 million charge is
included in the total $18.5 million income tax provision for 2012.  
The Company reported basic and diluted loss per share of $(1.31) for
the full year ended December 31, 2012, compared to a basic and
diluted loss per share of $(0.26) for the full year 2011. 
Conference Call and Webcast: Fourth Quarter and Full Year 2012
Financial Results: 
Chyron Corporation management will host a conference call on Monday,
March 11, 2013, at 10:00 AM eastern time, to review the fourth
quarter and full year 2012 results. Participants using the telephone
should dial 877-556-5248 (U.S. and Canada) or 720-545-0029
(International), and enter conference code 20581174. Web participants
are encouraged to go to http://investor.chyron.com or
www.earnings.com. A replay will be available shortly after the call
on http://investor.chyron.com, click on Events & Presentations. 
About Chyron  
Chyron (NASDAQ: CHYR) is a leading provider of Graphics as a Service
for on-air and digital video applications including newsrooms,
studios, sports broadcasting facilities, and corporate video
environments. An Emmy(R) Award-winning company whose products have
defined the world of digital and broadcast graphics, Chyron's
graphics solutions include the Axis Wo
rld Graphics online content
creation software and order management system, on-air graphics
systems, clip servers, channel branding, and graphics asset
management solutions, all of which may be incorporated into the
company's BlueNet(TM) end-to-end graphics workflow. More information
about Chyron products and services is available on the company
websites: www.chyron.com and www.axisgraphics.tv. The company's
investor relations information is at www.chyron.com, click on
Investors. 
Special Note Regarding Forward-looking Statements 
This press release may contain "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995,
including statements relating to: (i) revenue growth in our
traditional mature segments being achievable only through competitive
wins, (ii) our belief that the current depressed, price competitive
environment suggests that we will need to move in a different
direction to rebuild shareholder value, (iii) our belief that our
industry will consolidate over the next 2-3 years, and (iv) our
belief that there are pockets of strong growth that may be addressed
through alliances, partnerships and acquisitions. These
forward-looking statements are based on management's current
expectations and are subject to certain risks and uncertainties that
could cause actual results to differ materially from those set forth
in or implied by such forward-looking statements. These risks and
uncertainties include, but are not limited to: current and future
economic conditions that may adversely affect our business and
customers; potential fluctuation of our revenues and profitability
from period to period which could result in our failure to meet
expectations; our ability to maintain adequate levels of working
capital; our ability to successfully maintain the level of operating
costs; our ability to obtain financing for our future needs should
there be a need; our ability to incentivize and retain our current
senior management team and continue to attract and retain qualified
scientific, technical and business personnel; our ability to expand
our Axis online graphics creation solution or to develop other new
products and services; our ability to generate sales and profits from
our Axis online graphics services, workflow and asset management
solutions; rapid technological changes and new technologies that
could render certain of our products and services to be obsolete;
competitors with significantly greater financial resources;
introduction of new products and services by competitors; challenges
associated with expansion into new markets; failure to stay in
compliance with all applicable NASDAQ requirements could result in
NASDAQ delisting our common stock; and, other factors discussed under
the heading "Risk Factors" contained in Item 1A in our Annual Report
on Form 10-K for the year ended December 31, 2012, which has been
filed with the Securities and Exchange 
Commission, as well as any
updates to those risk factors filed from time to time. All
information in this press release is as of the date of the release
and we undertake no duty to update this information unless required
by law.  


 
                                                                            
                             CHYRON CORPORATION                             
        CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)         
                  (In thousands, except per share amounts)                  
                                                                            
                                  Three Months Ended        Year Ended      
                                     December 31,          December 31,     
                                    2012       2011       2012       2011   
                                 ---------  ---------  ---------  --------- 
                                                                            
Net sales                        $   7,414  $   8,108  $  30,222  $  31,587 
Gross profit                         5,120      5,786     20,903     22,114 
Operating expenses:                                                         
  Selling, general and                                                      
   administrative                    3,931      4,460     17,209     17,287 
  Research and development           1,761      1,759      7,443      6,775 
                                 ---------  ---------  ---------  --------- 
Total operating expenses             5,692      6,219     24,652     24,062 
                                 ---------  ---------  ---------  --------- 
Operating loss                        (572)      (433)    (3,749)    (1,948)
Interest and other income                                                   
 (expense), net                         (8)       (12)       (13)       (21)
                                 ---------  ---------  ---------  --------- 
Loss before taxes                     (580)      (445)    (3,762)    (1,969)
Income tax (expense) benefit,                                               
 net                               (19,439)        45    (18,539)    (2,277)
                                 ---------  ---------  ---------  --------- 
Net loss                         $ (20,019) $    (400) $ (22,301) $  (4,246)
                                                                            
Net loss per common share -                                                 
  Basic                          $   (1.17) $   (0.02) $   (1.31) $   (0.26)
  Diluted                        $   (1.17) $   (0.02) $   (1.31) $   (0.26)
                                                                            
Weighted average number of                                                  
 common and common equivalent                                               
 shares outstanding:                                                        
    Basic                           17,111     16,617     16,961     16,458 
    Diluted                         17,111     16,617     16,961     16,458 
                                                                            
                                                                            
              CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)             
                               (in thousands)                               
                                                                            
                                                   December 31, December 31,
                                                       2012         2011    
                                                   ------------ ------------
Assets:                                                                     
Cash and cash equivalents                          $      2,483 $      4,216
Accounts receivable, net                                  5,630        5,727
Inventories, net                                          2,285        2,132
Deferred taxes                                                -        2,508
Other current assets                                        626          792
                                                   ------------ ------------
  Total current assets                                   11,024       15,375
Deferred taxes                                                -       15,994
Goodwill and intangible assets, net                       2,625        2,724
Other non-current assets                                  1,466        1,713
                                                   ------------ ------------
    Total assets                                   $     15,115 $     35,806
                                                   ============ ============
                                                                            
Liabilities and shareholders' equity:                                       
Current liabilities                                $      7,315 $      8,006
Non-current liabilities                                   5,819        3,758
                                                   ------------ ------------
  Total liabilities                                      13,134       11,764
                                                   ------------ ------------
                                                                            
Shareholders' equity                                      1,981       24,042
                                                   ------------ ------------
Total liabilities and shareholders' equity         $     15,115 $     35,806
                                                   ============ ============

 
All trademarks and registered trademarks mentioned herein are the
property of their respective owners.
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Copyright 2013 Chyron Corporation 
Contact:
Chyron Investor Relations
Tel: (631) 845-2000, press 7
Email: IRelations@chyron.com 
 
 
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