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Chyron Reports Financial Results for the Fourth Quarter and
Full Year 2009
March 11, 2010
Source: Chyron Corporation
Chyron announced its financial results for the fourth quarter
and year ended December 31, 2009.
 Financial Tables
Financial Highlights:
Revenues of $7.2 million for the fourth quarter of 2009, up
7% over the prior year's fourth quarter and up 13% over the
third quarter of 2009; revenues of $25.6 million for fiscal
year 2009, down 25% from the prior year;
Operating expenses of $5.0 million for the fourth quarter,
down 3% from the prior year's fourth quarter; operating expenses
of $21.1 million for fiscal 2009, down 7% from fiscal 2008;
Net Loss of $0.3 million for the fourth
quarter of 2009, as compared to a net loss of $0.2 million
for the prior year's fourth quarter; net loss of $3.1 million
for fiscal 2009, as compared to net income of $17.8 million
for fiscal 2008 after a net tax benefit of $16.6 million;
A basic and diluted loss per share of $0.02 for the fourth
quarter of 2009, the same as for fourth quarter of 2008; a
basic and diluted loss per share of $0.20 for fiscal 2009,
as compared to basic earnings per share of $1.14 and diluted
earnings per share of $1.08 for fiscal 2008;
Adjusted EBITDA of $0.7 million for the
fourth quarter of 2009 versus an adjusted EBITDA loss of $0.1
million for the fourth quarter of 2008; an adjusted EBITDA
loss of $1.0 million for fiscal 2009 versus adjusted EBITDA
of $3.4 million for fiscal 2008.
For fiscal 2009, total revenues were $25.6 million, a decrease
of 25% from total revenues of $34.3 million in 2008. While
revenues from services, including the Company's Axis web based
service, were $4.8 million for 2009, up 30% from $3.7 million
for 2008, product revenues of $20.8 million for 2009 were
down 32% as compared to $30.6 million in 2008. Many of our
customers, we believe, continued to contain spending due to
global economic conditions during 2009.
Total operating expenses of $21.1 million for 2009 were 7%
below the $22.7 million for 2008 for the reasons explained
below. Selling, general and administrative expenses of $14.0
million for 2009 were down 15% from 2008 due to lower sales
commissions and bonuses, less utilization of outside services
and consultants, lower trade show and marketing costs, lower
travel costs and the effect of reductions in work force and
salary reductions.
Research and development spending of $7.1 million for 2009
was up 13% from 2008 due to an increase in personnel and related
costs in connection with the integration of our Axis web services
solution into our other products and the development of new
online services.
The Company realized net savings of $0.5 million in 2009 from
reductions in force, net of severance, and salary cuts implemented
in the third quarter. Net loss for 2009 was $3.1 million after
a $0.5 million net income tax benefit, as compared to 2008
net income of $17.8 million after a $16.6 million net income
tax benefit.
For the fourth quarter of 2009, total revenues were $7.2 million,
an increase of 7% over revenues of $6.7 million for fourth
quarter of 2008 and up 13% over revenues of $6.4 million for
the third quarter of 2009.
Services revenues for the fourth quarter of 2009 were $1.2
million, an increase of 14% over the fourth quarter of 2008,
and product revenues for the fourth quarter of 2009 were $6.0
million, an increase of 6% over the fourth quarter of 2008.
Total operating expenses were $5.0 million for the fourth
quarter of 2009, as compared to $5.1 million for the prior
year's fourth quarter for the reasons explained below.
Selling, general and administrative expenses of $3.4 million
for fourth quarter of 2009 were down 8% from the fourth quarter
of 2008 primarily due to lower compensation costs due to reductions
in force and pay cuts and lower travel costs, Research and
development spending of $1.6 million was up 9% from the fourth
quarter of 2008 primarily due to an increase in personnel
involved in, and other costs related to, development of our
Axis web-based service.
In the fourth quarter of 2009 the Company realized net savings
of $0.4 million from layoffs and pay cuts implemented in the
third quarter. Net loss for the fourth quarter of 2009 was
$0.3 million after a net income tax expense of $0.3 million,
as compared to a net loss of $0.2 million after a net income
tax benefit of $0.6 million in the fourth quarter of 2008.
Michael Wellesley-Wesley, Chyron President and CEO, commented,
"2009 was the year when, thanks to the talent, dedication
and hard work of my colleagues, we started building the foundation
for future growth and pushed forward with reinventing our
core business from products to services.
During the tough times in 2009, we understood that revenues
for the full year would be lower and we also understood that
we had an opportunity to build a stronger business - and we
believe we did. We increased our investment in R&D by
13% for the year and focused our activities on building Axis,
our web-services solution based upon the Cloud Computing model.
"Our focus on the Cloud helped to keep revenue from even
steeper erosion during the recession of 2009; overall revenue
fell 25% as product sales fell 32% but our services revenue
rose 30% from $3.7 million to $4.8 million. We believe that
this is key because we are working to reinvent our core business
by transitioning from a products company to a services company,
specifically to a Cloud Services company. Driving this transition
forward was a crucial aim for 2009, and a goal that I am happy
to say we believe is moving forward successfully. In 2009,
services accounted for 19% of total revenue, whereas in 2008
services revenue accounted for 11% of total revenue.
"Another key goal for 2009 was to preserve cash. We began
the year with $5.3 million in cash and we ended it with $5.2
million in cash. We achieved this through tight cost control,
reductions in force, pay cuts and disciplined cash management.
Today we believe that we have a strong balance sheet, adequate
working capital and the ability to generate sufficient cash
from operations to fund our current growth strategy."
"Revenues began to recover in the late summer and for
the fourth quarter we were able to show positive year over
year comparisons. Our business continues to improve in the
first few months of 2010, so I feel increasingly confident
that the worst media recession in the past 50 years may now
be behind us."
"We believe that we now find ourselves in a stronger
position to benefit from any economic recovery. We are optimistic
that what we have begun building in 2009 can provide the Company
with a sustainable competitive advantage and help position
Chyron to be better able to seize market share in future years."
Financial Tables
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