Espial Reports 2012 Third Quarter Results

Espial Reports 2012 Third Quarter Results


OTTAWA, Nov. 12, 2012 /CNW/ - Espial(®) Group Inc. ("Espial" or the "Company"), (TSX:ESP), a leader in the
delivery of on-demand TV software and services, today announced its
third quarter financial results for the three-month period ended
September 30, 2012.


Highlights


-- Q3 2012 revenue of $3.1 million with EBITDA loss of $0.2
million.
-- Toshiba selected Espial's TV Browser for North American Smart
TV models.
-- Panasonic Semiconductor signed an agreement with Espial to
offer an integrated solution to TV Manufacturers including
Espial Browser.
-- NTT Communications - Japan's largest service provider -
selected Espial TV Browser to power their Plala TV Services on
Mitsubishi set-top boxes.
-- KBRO, Taiwan's major cable operator, selected Espial MediaBase
as its multiscreen content delivery platform as announced in
October
-- Espial hosted a Smart TV industry event in Tokyo focusing on
HTML5 for 50+ consumer electronic executives.


For the three-month period ended September 30, 2012, the Company
reported revenues of $3.1 million compared with revenues of $3.8
million for the three months ended September 30, 2011. Earnings before
interest, foreign exchange, taxes, stock compensation, depreciation and
amortization (EBITDA) for the third quarter of fiscal 2012 was a loss
of $183,730 compared with earnings of $149,094 in the third quarter of
fiscal 2011. Net loss for the quarter was $0.8 million or $0.06 per
share, compared with a net loss of $0.3 million last year, or $0.02 per
share.



"In the third quarter, we continued to build on our leadership in
delivering products to drive HTML5 and rich user experiences across
set-top boxes, Smart TVs, PCs, Smart Phones and Tablets. The
competitive environment between new Over-The-Top video service
providers like Netflix and the incumbent cable, satellite and telecom
providers continues to accelerate. This creates long term opportunities
for Espial's products and services" said Jaison Dolvane, President and
CEO. "In Q3, we experienced a slower pace of roll-outs from our
existing Pay-TV customers and believe the current economic challenges
facing Europe accounted for much of this.   Our pipeline of cable and
telecom operators remains strong in North America, Europe and Asia and
we remain focused on leveraging this into 2013".


Q3 Financial Results


-- Revenue for the third quarter of fiscal 2012 was $3,070,677
compared with revenues of $3,770,473 in the same period a year
ago. Third quarter software license and royalty revenues were
$1,924,453 compared with software license and royalty revenues
of $2,272,018 in the third quarter of fiscal 2011. Professional
services revenue for the third quarters of 2012 and 2011 were
$275,816 and $729,723 respectively. Maintenance and support
revenues for the third quarter were $870,409 compared with
$768,732 last year.
-- Gross margin for the third quarter of fiscal 2012 was 83
percent compared with 78 percent in the third quarter of fiscal
2011.
-- Operating expenses for the third quarter of fiscal 2012 were
$3,127,787 compared with $3,222,600 in the third quarter of
fiscal 2011.
-- Earnings for the third quarter of fiscal 2012 before interest,
foreign exchange, taxes, stock compensation, depreciation and
amortization (EBITDA) was a loss of $183,730 compared with
earnings of $149,094 in the third quarter of fiscal 2011.
-- Net loss in the third quarter was $778,920 compared with a loss
of $316,049 last year.
-- Cash and cash equivalents on September 30, 2012, was
$9,956,580.


A complete set of financial statements and management's discussion and
analysis for the period ended September 30, 2012, will be available at http://www.sedar.com.


Conference Call


The Company will be hosting a conference call to discuss the third
quarter 2012 results on November 12, 2012 at 5:00 p.m. Eastern Standard
Time (EST). The phone number to join the results discussion is:



-- Toll free line (Canada/US) - +1 888-231-8191
-- Toll line (international/local) - +1 647-427-7450


The playback for the call will be available until 11:59pm EST on
December 11, 2012, at the following numbers and passcode:



-- Toll line: +1 416-849-0833, Passcode: 61397437
-- Toll-free line: +1-855-859-2056, Passcode: 61397437

About Espial (www.espial.com)


Espial is a leading supplier of digital TV and IPTV software and
solutions to cable MSOs and telecommunications operators as well as
consumer electronics manufacturers. Espial's middleware,
video-on-demand, and browser products power a diverse range of pay-TV
and Internet TV business models. Over 10 million licenses of its
patented software are in use across the world. Espial is headquartered
in Ottawa, Canada and has offices in the United States, Europe, and
Asia. Visit www.espial.com or contact us via phone at +1 613 230 4770.


Forward Looking Statement


This press release contains information that is forward looking
information with respect to Espial within the meaning of Section
138.4(9) of the Ontario Securities Act (forward looking statements) and other applicable securities laws. In
some cases, forward-looking information can be identified by the use of
terms such as "may", "will", "should", "expect", "plan", "anticipate",
"believe", "intend", "estimate", "predict", "potential", "continue" or
the negative of these terms or other similar expressions concerning
matters that are not historical facts. In particular, statements about
anticipated benefits of new customer and partner relationships, future
opportunities for the company and products and any other statements
regarding Espial's future expectations, beliefs, goals or prospects are
or involve forward-looking information.



Forward-looking information is based on certain factors and
assumptions.  While the company considers these assumptions to be
reasonable based on information currently available to it, they may
prove to be incorrect. Forward-looking information, by its nature
necessarily involves risks and uncertainties, including Espial's
ability to effectively develop its distribution channels, and generate
increased demand for its products.  Additional risks and uncertainties
affecting Espial can be found in Espial's Annual Report for the fiscal
year ended December 31, 2011 and in its most recent quarterly report
filed on SEDAR at www.sedar.com. If any of these risks or uncertainties were to materialize, or if the
factors and assumptions underlying the forward-looking information were
to prove incorrect, actual results could vary materially from those
that are expressed or implied by the forward-looking information
contained herein.  Espial assumes no obligation to update or revise any
forward looking statements, whether as a result of new information,
future events or otherwise. Readers are cautioned not to place undue
reliance on these forward-looking statements that speak only as of the
date hereof.


Non-IFRS Financial Measures


Earnings before interest, foreign exchange, taxes, stock compensation,
depreciation and amortization (EBITDA) is a non-IFRS financial measure
that does not have any prescribed meaning by IFRS and is therefore
unlikely to be comparable to similar measures presented by other
issuers.  Management believes that this non-IFRS financial measure,
when taken together with the corresponding consolidated IFRS measures,
increases the transparency of the Company's current results and enables
investors to more fully understand trends in its current and future
performance. A reconciliation of net loss to earnings before interest,
foreign exchange, taxes, stock compensation, dividends on redeemable
preferred shares, depreciation and amortization is as follows:






September 30, 2012 September 30, 2011

(3 months) (3 months)
(unaudited) (unaudited)



Net loss and Comprehensive loss $ (778,920) $ (316,049)

Add

Stock compensation 49,613 80,596

Depreciation of property and
equipment 58,225 52,572

Amortization of intangibles 286,126 286,279

(384,956) 103,398

Less (add)

Net interest income (expense) (111,208) (121,854)

Foreign exchange gain (loss) (90,018) 76,158

Earnings before interest, foreign
exchange, taxes, stock
compensation, depreciation and
amortization $ (183,730) $ 149,094




 



 



 


SOURCE ESPIAL GROUP

ESPIAL GROUP

CONTACT: For inquiries from the financial press or analysts, contact: Carl Smith
Chief Financial Officer
Espial Group Inc.
Email: csmith@espial.com
Phone: +1 613-230-4770

Kirk Edwardson
Director, Marketing
Espial Group Inc.
Email: kedwardson@espial.com
Phone: +1-613-230-4770 x1145




-------
Profile: intent