Haivision continues its expansion with
18.8% year-over-year growth
MONTREAL, June 14,
2023 /PRNewswire/ - Haivision Systems
Inc. ("Haivision" or the "Company") (TSX: HAI),
a leading global provider of mission critical, real-time video
networking and visual collaboration solutions, today announced its
results for the second quarter ended April
30, 2023.
"We had a very exciting quarter having won multiple best of show
awards for Haivision StreamHub and Pro460 bonded cellular solutions
confirming our position as the world leader in live video
contribution over any network." said Mirko
Wicha, Chairman and CEO of Haivision. "We also introduced
compelling new products this quarter including the Makito FX,
the most versatile ultra-low latency 4K video encoder for mission-critical
applications and the Makito X4 single channel encoder complete with
the capabilities that Haivision is known for at a revolutionary
price point."
Q2 2023 Financial Results
- Revenue of $35.1 million
represents an increase of 17.5% from the prior year.
- Gross margins* were 68.9%.
- Total expenses were $25.1
million, an increase of $3.9
million.
- Operating loss was $0.9 million,
a $1.1 million decrease compared to
an operating profit of $0.1 million
the prior year.
- Adjusted EBITDA was $2.6 million,
compared to $2.6 million the prior
year.
- Adjusted EBITDA Margins was 7.5% compared to 8.7% for the prior
year.
- Net loss of $1.5 million compared
to a net loss of $0.4 million in the
prior year.
Financial Results for the six months ended April 30, 2023
- Revenue of $69.2 million
represents an increase of 18.8% from the prior year.
- Gross margins* were 67.8%.
- Total expenses were $48.8 million
an increase of $7.8 million from the
prior year.
- Operating loss was $1.9 million,
compared to $0.0 million in the prior
year.
- Net loss was $2.9 million,
compared to a net loss of $0.8
million in the prior year.
- Adjusted EBITDA* was $4.7
million, compared to $4.7
million in the prior year.
- Adjusted EBITDA Margin* was 6.9% compared to 8.1% for the prior
year.
Key Company Highlights
- Deployed Haivision's Pro Series transmitters on 5G private
networks for elections in Denmark
(TV2), sailing in Spain
(Telefonica), and football in Germany (Media Broadcast/Nokia).
- TV Technology Magazine selected Haivision Pro Series
transmitters (Pro460) "Best in Market 2022" for innovation, feature
set, cost efficiency and performance.
- Launched Haivision Command 360 for mission critical
collaboration to international markets at ISE exhibition in
Barcelona.
- Launched the Makito FX, a versatile ultra-low latency
4K video and computer graphics
encoder for mission-critical applications.
- SRT Alliance membership surpasses 600 members and
welcomes Paramount, Cloudflare, Dolby.io,
Chryon, JW Player, THEO
Technologies, EVS and YouTube.
- Haivision Makito X4 awarded "Best Encoding Hardware for
Live Production" at the 2022 Streaming Media Readers' Choice
Awards.
- Haivision announced the appointment of Jean-Marc Racine as Chief Product
Officer.
"We continue to make tremendous headway in our video
collaboration systems having installed no less than 5 "command"
centers for one of the world's largest technology companies." said
Dan Rabinowitz, Chief Financial
Officer and EVP, Operations. "Further proving the advanced
technical capabilities of our low-latency bonded cellular solution
over 5G private networks, our products were hugely successfully in
live content contribution of King
Charles coronations where competitive products failed.
Financial Results
Revenue for the three months and six months ended April 30, 2023 was $35.1
million and $69.2 million,
respectively, an increase of $5.2
million or 17.5% and $11.0
million or 18.8%, when compared to the prior year
comparative periods. The primary contributors to revenue
growth was the acquisition of Aviwest in April 2022. Gross
Margins* for the three months and six months ended April 30, 2023 were 68.9% and 67.8%,
respectively compared to 71.4% and 70.4% for the prior year
comparable periods. Gross Margins* were impacted by revenues
generated by Aviwest which operates at a lower gross margin than
Haivision's traditional business.
Total expenses for the three months and six months ended
April 30, 2023 were $25.1 million and $48.8
million, respectively representing increases of $3.9 million and $7.8
million when compared to the prior year comparative
periods. The increase in total expenses is largely related to
the acquisition of Aviwest in April
2022, and includes incremental depreciation and amortization
expenses of $1.0 million and
$2.1 million when compared to the
prior year comparative periods.
Net loss for the three months and six months ended April 30, 2023 was $1.5
million and $2.9 million,
respectively and represents decreases of $1.1 million and $2.1
million when compared to the prior year comparative periods,
Adjusted EBITDA* for the three months and six months ended
April 30, 2023 was $2.6 million and $4.7
million, respectively, comparable to the prior year
comparative periods.
*Represents a non-IFRS measure. For the relevant
definition, see "Non-IFRS Measures" below. As applicable, a
reconciliation of this non-IFRS measure to the most directly
comparable IFRS financial measure is included in the tables at the
end of this press release and in the Company's management's
discussion and analysis for the three months and six months
ended April 30, 2023.
Conference Call Notification
Haivision will hold a conference call to discuss its second
quarter financial results on Thursday, June
15, 2023 at 8:30 am (ET). To
register for the call, please use this link
https://conferencingportals.com/event/OTBDlmaj. After registering,
a confirmation will be sent through email, including dial in
details and unique conference call codes for entry.
Financial Statements, Management's Discussion and Analysis
and Additional Information
Haivision's unaudited interim condensed financial statements for
the second quarter ended April 30,
2023 (the "Q2 Financial Statements"), the
management's discussion and analysis thereon and additional
information relating to Haivision and its business can be found
under Haivision's profile on SEDAR at www.sedar.com. The financial
information presented in this release was derived from the Q2
Financial Statements.
Forward-Looking Statements
This release includes "forward-looking information" and
"forward-looking statements" (collectively, "forward-looking
statements") within the meaning of applicable securities laws,
including, without limitation, statements regarding the Company's
growth opportunities and its ability to execute on its growth
strategy. In some cases, but not necessarily in all cases,
forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "targets", "expects"
or "does not expect", "is expected", "an opportunity exists", "is
positioned", "estimates", "intends", "assumes", "anticipates" or
"does not anticipate" or "believes", or variations of such words
and phrases or state that certain actions, events or results "may",
"could", "would", "might", "will" or "will be taken", "occur" or
"be achieved". In addition, any statements that refer to
expectations, projections or other characterizations of future
events or circumstances contain forward-looking statements.
Forward-looking statements are not historical facts, nor guarantees
or assurances of future performance but instead represent
management's current beliefs, expectations, estimates and
projections regarding future events and operating performance.
Forward-looking statements are necessarily based on opinions,
assumptions and estimates that, while considered reasonable by
Haivision as of the date of this release, are subject to inherent
uncertainties, risks and changes in circumstances that may differ
materially from those contemplated by the forward-looking
statements. Important factors that could cause actual results to
differ, possibly materially, from those indicated by the
forward-looking statements include, but are not limited to, the
risk factors identified under "Risk Factors" in the Company's
latest annual information form, and in other periodic filings that
the Company has made and may make in the future with the securities
commissions or similar regulatory authorities in Canada, all of which are available under the
Company's SEDAR profile at www.sedar.com. These factors are not
intended to represent a complete list of the factors that could
affect Haivision. However, such risk factors should be considered
carefully. There can be no assurance that such estimates and
assumptions will prove to be correct. You should not place undue
reliance on forward-looking statements, which speak only as of the
date of this release. Haivision undertakes no obligation to
publicly update any forward-looking statement, except as required
by applicable securities laws.
Non-IFRS Measures
Haivision's consolidated financial statements for the second
quarter ended April 30, 2023 are
prepared in accordance with International Financial Reporting
Standards ("IFRS"). This press release makes reference to certain
non-IFRS measures, including "EBITDA", "Gross Margin", "Adjusted
EBITDA" and "Adjusted EBITDA Margin". These measures are not
recognized measures under IFRS and do not have a standardized
meaning prescribed by IFRS, and are therefore unlikely to be
comparable to similar measures presented by other companies.
Accordingly, these measures should not be considered in isolation
or as a substitute for analysis of our financial information
reported under IFRS. Rather, these non-IFRS measures are used to
provide investors with supplemental measures of our operating
performance and thus highlight trends in our core business that may
not otherwise be apparent when relying solely on IFRS measures. We
also believe that securities analysts, investors and other
interested parties frequently use non-IFRS measures in the
evaluation of issuers. Our management also uses non-IFRS measures
to facilitate operating performance comparisons from period to
period, to prepare annual operating budgets and forecasts and to
determine components of management compensation.
Adjusted EBITDA is a supplemental measure used by management to
assess the financial performance of our business. Adjusted EBITDA
is also a key metric that management uses prior to execution of any
strategic investing or financing opportunity. "EBITDA" is defined
as earnings (loss) before income taxes, depreciation, amortization
and financial expenses and "Adjusted EBITDA" is defined as EBITDA,
as adjusted for stock-based compensation and certain non-recurring
expense items. "Adjusted EBITDA Margin" represents Adjusted EBITDA
divided by revenue. "Gross Margin" represents gross profit divided
by revenue.
A reconciliation of EBITDA and Adjusted EBITDA to Net income
(loss) is included in the tables at the end of this press release
and in the Company's management discussion and analysis for the
three months and six months ended April 30,
2023.
About Haivision
Haivision is a leading global provider of mission-critical,
real-time video streaming and visual collaboration solutions. Our
connected cloud and intelligent edge technologies enable l
organizations globally to engage audiences, enhance collaboration,
and support decision making. We provide high quality, low latency,
secure, and reliable live video at a global
scale. Haivision open sourced its award-winning SRT low
latency video streaming protocol and founded the SRT Alliance to
support its adoption. Awarded four Emmys® for Technology and
Engineering from the National Academy of Television Arts and
Sciences, Haivision continues to fuel the future of IP
video transformation. Founded in 2004, Haivision is
headquartered in Montreal and
Chicago with offices, sales, and
support located throughout the Americas, Europe, and Asia. Learn more at haivision.com.
Thousands of Canadian
dollars (except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
April
30,
|
|
Six months
ended
April
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
($)
|
|
($)
|
|
($)
|
|
($)
|
Revenue
|
35,112
|
|
29,885
|
|
69,178
|
|
58,219
|
Cost of
sales
|
10,912
|
|
8,556
|
|
22,307
|
|
17,220
|
|
|
|
|
|
|
|
|
Gross
profit
|
24,200
|
|
21,329
|
|
46,871
|
|
40,999
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
Sales and
marketing
|
8,111
|
|
6,673
|
|
15,512
|
|
12,617
|
Operations and
support
|
3,861
|
|
2,862
|
|
7,588
|
|
5,426
|
Research and
development
|
7,819
|
|
7,535
|
|
15,306
|
|
13,736
|
General and
administrative
|
4,603
|
|
3,427
|
|
9,300
|
|
7,740
|
Share-based
payment
|
720
|
|
687
|
|
1,096
|
|
1,449
|
|
|
|
|
|
|
|
|
|
25,114
|
|
21,184
|
|
48,802
|
|
40,968
|
|
|
|
|
|
|
|
|
Operating Profit
(loss)
|
(914)
|
|
145
|
|
(1,931)
|
|
31
|
Financial
expenses
|
340
|
|
192
|
|
944
|
|
346
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
(1,254)
|
|
(47)
|
|
(2,876)
|
|
(315)
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
|
|
|
|
|
|
Current
|
487
|
|
364
|
|
144
|
|
247
|
Deferred
|
(226)
|
|
(41)
|
|
(87)
|
|
281
|
|
|
|
|
|
|
|
|
|
261
|
|
(322)
|
|
58
|
|
528
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
(1,515)
|
|
(369)
|
|
(2,932)
|
|
(843)
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
(1,907)
|
|
(960)
|
|
(2,668)
|
|
1,084
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss)
|
392
|
|
(1,329)
|
|
(265)
|
|
241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share
|
|
|
|
|
|
|
|
Net income (loss)
per share (basic and diluted)
|
$(0.05)
|
|
$(0.01)
|
|
$(0.10)
|
|
$(0.03)
|
Weighted average
number of shares outstanding
|
|
|
|
|
|
|
|
Basic
|
29,004,453
|
|
28,878,054
|
|
28,943,698
|
|
28,830,884
|
Diluted
|
29,004,453
|
|
28,878,054
|
|
28,943,698
|
|
28,830,884
|
|
|
|
|
|
|
|
|
Thousands of Canadian
dollars
|
|
|
As at
|
|
April 30,
2023
|
|
October 31,
2022
|
|
$
|
|
$
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash
|
7,295
|
|
5,773
|
Trade and other receivables
|
19,164
|
|
26,711
|
Income taxes receivable
|
343
|
|
—
|
Investment tax credits receivable
|
3,000
|
|
3,000
|
Inventories
|
21,344
|
|
21,056
|
Prepaid expenses
|
4,716
|
|
5,125
|
|
55,862
|
|
61,665
|
|
|
|
|
Property and
equipment
|
3,738
|
|
3,808
|
Right-of-use
assets
|
8,253
|
|
8,948
|
Intangible
assets
|
20,306
|
|
23,664
|
Goodwill
|
45,774
|
|
44,435
|
Non-refundable
investment tax credits receivable
|
4,916
|
|
3,298
|
Deferred income
taxes
|
2,812
|
|
2,778
|
|
85,800
|
|
86,931
|
|
141,663
|
|
148,596
|
Liabilities
|
|
|
|
Current
liabilities
|
|
|
|
Line of credit
|
10,011
|
|
11,173
|
Trade and other payables
|
12,802
|
|
17,841
|
Restructuring costs payable
|
86
|
|
1,670
|
Purchase price payable
|
1,499
|
|
1,985
|
Income taxes payable
|
—
|
|
42
|
Current portion of lease liabilities
|
1,630
|
|
1,538
|
Current portion of term loans
|
1,119
|
|
1,389
|
Deferred revenue
|
10,436
|
|
9,246
|
|
43,433
|
|
44,884
|
|
|
|
|
Lease
liabilities
|
7,542
|
|
8,258
|
Term loans
|
2,326
|
|
2,617
|
Deferred
revenue
|
3,372
|
|
2,587
|
|
50,823
|
|
58,345
|
|
|
|
|
Equity
|
|
|
|
Share
capital
|
90,902
|
|
90,176
|
Retained
earnings
|
(11,839)
|
|
(9,195)
|
Stock option
reserve
|
4,404
|
|
4,565
|
Foreign currency
translation adjustment
|
7,372
|
|
4,704
|
|
90,839
|
|
90,251
|
|
141,663
|
|
148,596
|
|
|
|
|
|
|
|
|
|
Thousands of Canadian
dollars
|
|
|
|
|
|
|
|
|
|
Three months
ended
April
30,
|
|
Six months
ended
April
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
($)
|
|
($)
|
|
($)
|
|
($)
|
Net Income
(loss)
|
(1,515)
|
|
(369)
|
|
(2,932)
|
|
(843)
|
Income
Taxes
|
261
|
|
595
|
|
58
|
|
528
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
(1,254)
|
|
(47)
|
|
(2,875)
|
|
(315)
|
|
|
|
|
|
|
|
|
Depreciation
|
768
|
|
595
|
|
1,546
|
|
1,110
|
Amortization
|
2,069
|
|
1,162
|
|
4,037
|
|
2,141
|
Financial
expenses
|
340
|
|
191
|
|
944
|
|
346
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
1,923
|
|
1,902
|
|
3,652
|
|
3,282
|
|
|
|
|
|
|
|
|
Share-based payments
(LTIP)
|
720
|
|
687
|
|
1,096
|
|
1,449
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA(1)
|
2,643
|
|
2,589
|
|
4,748
|
|
4,731
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin(1)
|
7.5 %
|
|
8.7 %
|
|
6.9 %
|
|
8.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
__________________
|
Note:
|
(1) Non-IFRS measure.
See "Non-IFRS Measures".
|
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SOURCE Haivision Systems Inc.