Haivision reports record quarterly performance
with 23.3% year-over-year revenue growth

MONTREAL, March 15, 2022 /CNW Telbec/ - Haivision Systems Inc. ("Haivision" or the "Company") (TSX: HAI), a leading global provider of mission critical, real-time IP video solutions, today announced its results for the first quarter ended January 31, 2022.

Haivision Systems Inc. Logo (CNW Group/Haivision Systems Inc.)

Mirko Wicha, Chairman and CEO of Haivision said, "We continue to build on the momentum generated in our first year as a public Company.  We are seeing continued demand for our products as demonstrated by this quarter's record revenue, as we continue to execute our vision and strategy set forward during our IPO.  We are also very excited with the recent announcement to acquire Aviwest SAS, adding ultra-low latency 5G and advanced network bonding to our already comprehensive video contribution solutions."


Q1 2022 Financial Results

  • Revenue of $28.3 million was an increase of $5.4 million or 23.3% from the prior year period.
  • Gross Margins* for the quarter were 69.4%.
  • Operating loss for the quarter was $0.1 million, an increase in operating income of $11.2 million from the prior year period largely related to share-based payments.
  • Adjusted EBITDA* was $2.1 million, a decrease of $1.4 million from the prior year period, but represents the thirty-third (33rd) consecutive quarter of positive Adjusted EBITDA*.
  • Adjusted EBITDA margin for the quarter was 7.6% compared to 15.5% in the prior year period.
  • Net loss of $0.5 million was an increase in net income of $11.6 million from the prior year period.
  • Cash at quarter end was $24.0 million.

Key Company Highlights

  • CineMassive Displays, LLC renamed as Haivision MCS, LLC, to highlight our focus on "Mission-Critical Systems."
  • On February 24, 2022, Haivision announced an agreement to acquire Aviwest SAS adding 5G mobile technology and network bonding to Haivision's industry-leading ultra-low latency video streaming and networking solutions.
  • Haivision won its second Emmy® Award for Technology & Engineering for the "Management of IP Multicast Video Distribution to Desktops and TVs in News and Media Production Facilities" for our flagship multisite live video distribution and IPTV solutions, Haivision Media Platform.
  • Haivision awarded "Best Corporate Video and Enterprise Video Content Management Platform" at the 2021 Streaming Media Readers' Choice Awards.
  • Published our third annual Broadcast IP Transformation Report, showing the adoption of SRT and 5G as two of the most influential trends in the industry.
  • Haivision's SRT Alliance has now surpassed 550 members supporting our open-source initiative.
  • Released products supporting SMPTE-2110 enabling all IP based workflows in Broadcast.

"We continue to be excited the progress we have made with CineMassive, and the cross-selling of solutions that have resulted in synergistic sales." said Mirko Wicha, Chairman and CEO of Haivision. "We have also rebranded CineMassive Displays as Haivision MCS to better highlight our focus on 'Mission-Critical Systems" in our defense, government, enterprise, and public safety verticals. 

Dan Rabinowitz, CFO and EVP, Operations stated, "The Aviwest acquisition is expected to close at the end of the month, and we expect it to be immediately accretive in the short-term with opportunities to reach our typical levels of Adjusted EBITDA contribution by the end of this calendar year."

First Quarter 2022 Financial Results

First quarter revenues of $28.3 million, represented a 23% increase compared to $23.0 million for the prior year period.  Gross Margins* for the quarter were 69.3% compared to 76.4% for the same period in the prior year.  The decrease in Gross Margins* results largely from the addition of CineMassive's business which historically operated at a lower overall gross margin than Haivision's traditional business. Adjusted EBITDA* in the quarter of $2.1 million, a $1.4 million decrease compared to the $3.6 million for the prior year period.  The decrease in Adjusted EBITDA is largely related to the $5.3 million increase in revenue contributing to a $2.1 million increase in gross profit; offset by increases in total expenses (excluding share-based payments, amortization, and depreciation) of $3.4 million.

Operating loss for the quarter was $0.1 million an increase of $11.2 million from the same period in the prior year, Net loss of $0.5 million an increase of $11.6 million from the same period in the prior year. The increases in operating income and net income are largely related to the $5.3 million increase in revenue contributing to a $2.1 million increase in gross profit and the $14.1 million increase in share-based payments related to the exercise of options on the legacy ESOP prior to the initial public offering in December 2020 offset by increases in total expenses (excluding share-based payments) of $4.6 million.

* 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 three months ended January 31, 2022.

Conference Call Notification

Haivision will hold a conference call to discuss its fourth quarter financial results on Tuesday,
March 15, 2022 at 5:30 pm (ET). To register for the call, please use this link http://www.directeventreg.com/registration/event/8662097. 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 consolidated audited financial statements for the first quarter ended January 31, 2022 (the "Q1 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 Q1 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 first quarter ended January 31, 2022 are prepared in accordance with International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board. 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 ended January 31, 2022.

About Haivision

Haivision is a leading global provider of mission-critical, real-time video streaming and networking solutions. Our connected cloud and intelligent edge technologies enable global organizations 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 two 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
January 31,


2022


2021






($)


($)





Revenue..................................................................

28,334


22,985

Cost of sales.......................................................

8,665


5,433

Gross profit.........................................................

19,669


17,552





Expenses




Sales and marketing............................................

5,943


5,109

Operations and support.......................................

2,564


1,319

Research and development.................................

6,201


4,879

General and administrative..................................

4,314


3,109

Share-based payment..........................................

769


14,449


19,791


28,665





Operating Profit (loss)............................................

(122)


(11,313)

Financial expenses..............................................

154


109

Income (loss) before income taxes.......................

(276)


(11,421)





Income taxes




Current................................................................

(117)


952

Deferred..............................................................

323


(288)






206


664





Net income (loss)....................................................

(482)


(12,086)





Other comprehensive income (loss)




Foreign currency translation adjustment...............

2,048


(490)

Comprehensive income (loss)................................

1,566


(12,575)





Net income per share




   Net income (loss) per share (basic and diluted).....

($0.02)


($0.60)

   Weighted average number of shares outstanding




       Basic...............................................................

28,785,252


21,098,923

       Diluted.............................................................

28,785,252


21,098,923









 

Thousands of Canadian dollars



As at


January 31,
2022


October 31,
2021


$


$





Assets




Current assets




Cash……………………………………………………….

24,030


26,838

Trade and other receivables……………………………

21,371


19,476

Investment tax credits receivable………………………

2,000


2,000

Inventories………………………………………………..

10,091


8,840

Prepaid expenses ……………………………………….

4,845


3,226


62,337


60,380





Property and equipment ………………………………………….

1,678


1,848

Right-of-use assets.……………………………………………….

7,670


7,926

Intangible assets..………………………………………………….

16,813


17,533

Goodwill …………………………………………………………….

31,014


30,079

Non-refundable investment tax credits receivable …………….

2,815


2,535

Deferred income taxes…………………………………………….

1,914


2,179


61,904


62,100


124,241


122,480





Liabilities




Current liabilities




Trade and other payables……………………………….

11,177


12,504

Income taxes payable …………………………………...

2,585


2,960

Current portion of lease liabilities ………………………

1,016


1,002

Deferred revenue ………………………………………...

8,933


7,913


23,711


24,379





Lease liabilities …………………………………………………….

7,459


7,587

Deferred revenue ………………………………………………….

2,239


1,593


33,409


33,559





Equity




Share capital ……………………………………………………….

90,176


89,785

Retained earnings …………………………………………………

(3,484)


(3,002)

Stock option reserve……………………………………………….

2,638


2,684

Cumulative translation adjustment ………………………………

1,502


(546)


90,832


88,921


124,241


122,480






 

Thousands of Canadian dollars









Three months ended
January 31,


2022


2021






($)


($)





Net Income (loss)................................................

(482)


(12,086)

Income Taxes..................................................

206


664





Income before income taxes..............................

(276)


(11,422)





Depreciation.....................................................

515


289

Amortization.....................................................

980


138

Financial expenses..........................................

154


109









EBITDA(1)...........................................................

1,373


(10,886)





   Share-based payment (LTIP).........................

769


324

   Share-based payment (ESOP).......................

--


14,125





Adjusted EBITDA(1)..............................................

2,142


3,563









Adjusted EBITDA Margin(1)...............................

7.6%


15.5 %


_______________

Note:

(1)

Non-IFRS measure. See "Non-IFRS Measures"

 

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SOURCE Haivision Systems Inc.

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