Chyron Reports Financial Results for the First Quarter 2013

Chyron Reports Financial Results for the First Quarter 2013 
MELVILLE, NY -- (Marketwired) -- 05/09/13 --  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 first quarter ended March 31, 2013. 
First Quarter 2013 Financial Highlights include: 


 
--  1Q2013 total revenues increased 2% to $8.01 million compared to $7.88
    million in 1Q2012;
--  Product revenues in 1Q2013 increased 3% to $5.97 million compared to
    $5.80 million in 1Q2012;
--  Services revenues in 1Q2013 decreased 2% to $2.04 million compared to
    $2.08 million in 1Q2012;
--  Operating expenses in 1Q2013 decreased 1% to $6.53 million compared to
    $6.62 million in 1Q2012. Included in 1Q2013 operating expenses were
    $0.69 million in transaction costs related to the planned acquisition
    of Hego AB, expected to close later this month. Excluding these costs,
    operating expenses would have decreased 12% to $5.84 million compared
    to 1Q2012;
--  Operating loss in 1Q2013 decreased 25% to $(0.81) million compared to
    operating loss of $(1.07) million in 1Q2012. Excluding the Hego
    transaction costs, operating loss would have decreased 89% to $(0.11)
    million compared to 1Q2012;
--  Net loss in 1Q2013 decreased 4% to $(0.92) million compared to net
    loss of $(0.95) million in 1Q2012. Excluding the Hego transaction
    costs, net loss would have decreased 76% to $(0.22) million compared
    to 1Q2012.

  
Michael Wellesley-Wesley, Chyron CEO, said, "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."  
First Quarter 2013 Financial Results 
Total revenues for the first quarter of 2013 increased 2% to $8.01
million compared to $7.88 million in the first quarter of 2012. 
Product revenues for the first quarter increased 3% to $5.97 million
compared to $5.80 million in the comparable 2012 quarter. First
quarter 2013 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, decreased 2% to $2.04 million
compared to $2.08 million in the comparable quarter of 2012. 
Gross profit margin for the first quarter of 2013 increased to 71%
compared to 70% in last year's first quarter. 
Operating expenses for the first quarter were $6.53 million compared
to $6.62 million for the first quarter of 2012, representing a 1%
decrease. Included in first quarter of 2013 operating expenses were
$0.69 million of transaction costs related to the acquisition of Hego
AB which is planned for later this month. Excluding these transaction
costs, operating expenses for the first quarter of 2013 were $5.84
million, representing a 12% decrease from operating expenses for last
year's first quarter. First quarter of 2013 operating expenses were
lower than last year's operating expenses in both research and
development and sales and marketing, and general and administrative
expenses were essentially flat when Hego transaction costs are
excluded. 
Operating loss for the first quarter of 2013 was $(0.81) million as
compared to an operating loss of $(1.07) million in the first quarter
of 2012. Excluding Hego transaction costs, operating loss would have
been $(0.11) million, or 89% less than last year's first quarter
operating loss. 
Net loss in the first quarter was $(0.92) million compared to net
loss of $(0.95) million in the comparable quarter of 2012. Excluding
the Hego transaction costs, net loss for the first quarter of 2013
would have decreased 76% to $(0.22) million compared to last year's
first quarter. 
Conference Call and Webcast: First Quarter 2013 Financial Results: 
Chyron Corporation management will host a conference call on
Thursday, May 9, 2013, at 10:00 AM eastern time, to review the first
quarter 2013 results. Participants using the telephone should dial
877-556-5248 (U.S. and Canada) or 720-545-0029 (International), and
enter conference code 64448349. 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 World 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) our expectation that with lower
operating expenses in the first quarter of 2013 as compared to the
first quarter of 2012, and an estimated further reduction of $3
million annually in operating expenses as a result of the reduction
in workforce on May 2, 2013, a different and improving financial
model will emerge, (ii) our expectation that the acquisition of Hego
AB later this month will take place as planned, and, (iii) our
expectation that as a result of the new ChyronHego combined News and
Sports product range to be offered by ChyronHego, our revenues will
increase in the second half of 2013. 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 integrate the operations of Chyron and Hego successfully and in a
timely manner; 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  
                                                             March 31,      
                                                       -------------------- 
                                                          2013       2012   
                                                       ---------  --------- 
                                                                            
Net revenues                                           $   8,017  $   7,877 
Gross profit                                               5,722      5,542 
Operating expenses:                                                         
  Selling, general and administrative                      4,751      4,685 
  Research and development                                 1,780      1,931 
                                                       ---------  --------- 
Total operating expenses                                   6,531      6,616 
                                                       ---------  --------- 
Operating (loss)                                            (809)    (1,074)
Interest and other income (expense), net                     (97)         2 
                                                       ---------  --------- 
(Loss) before taxes                                         (906)    (1,072)
Income tax benefit (expense), net                            (11)       121 
                                                       ---------  --------- 
Net (loss)                                             $    (917) $    (951)
                                                       =========  ========= 
                                                                            
Net (loss) per common share -                                               
  Basic                                                $   (0.05) $   (0.06)
  Diluted                                              $   (0.05) $   (0.06)
Weighted average number of common and                                       
common equivalent shares outstanding:                                       
    Basic                                                 17,362     16,807 
    Diluted                                               17,362     16,807 
                                                                            
                                                                            
                                                                            
                                                                            
              CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)             
                               (in thousands)                               
                                                                            
                                                     March 31,  December 31,
                                                       2013         2012    
                                                   ------------ ------------
Assets:                                                                     
Cash and cash equivalents                          $      2,309 $      2,483
Accounts receivable, net                                  5,611        5,630
Inventories, net                                          2,097        2,285
Other current assets                                        754          626
                                                   ------------ ------------
  Total current assets                                   10,771       11,024
Goodwill and intangible assets, net                       2,601        2,625
Other non-current assets                                  1,371        1,466
                                                   ------------ ------------
    Total assets                                   $     14,743 $     15,115
                                                   ============ ============
                                                                            
Liabilities and shareholders' equity:                                       
Current liabilities                                $      7,638 $      7,315
Non-current liabilities                                   5,763        5,819
                                                   ------------ ------------
    Total liabilities                                    13,401       13,134
                                                   ------------ ------------
                                                                            
Shareholders' equity                                      1,342       _1,981
                                                   ------------ ------------
Total liabilities and shareholders' equity         $     14,743 $     15,115
                                                   ============ ============

 
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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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