CHYRON’S SECOND QUARTER 2006 REVENUES INCREASE 48% AND NET INCOME HIGHEST IN 10 YEARS
Chyron Corporation announced that for its second quarter,
the Company produced a net income of $1.7 million on revenues of $8.6 million. The $1.7 million net income
was the highest by the Company in nearly 10 years, and a significant
improvement over the net loss of $0.2 million reported last year.
Second quarter revenues of $8.6 million were $2.8 million or
percent higher than the $5.8 million reported for last year’s quarter. The
revenues included approximately $0.2 million in sales from the Company’s ChyTV
product line. Revenues of $13.4 million for the first six months were $1.6 million
or 14 percent higher than the $11.8 million reported for the first six months
Gross margins for the second quarter were 67 percent compared to 65
percent in last year’s quarter, and for the first six months were 67 percent compared to 62 percent for the same period in 2005. The gross margin increases resulted from a combination of lower materials costs and product mix, with newer products providing higher average gross margins in 2006.
Operating expenses of $4.1 million for the second quarter were $0.2
million higher than the $3.9 million incurred in the second quarter of
2005, primarily due to increased spending on product development in
both the broadcast graphics and ChyTV product lines.
For the first half of 2006 the Company reported net income
of $1.2 million on revenues of $13.4 million compared to a $0.4 million net
loss for the prior year’s first half. Operating expenses of $7.8 million for
the first half were $0.2 million higher than the year before.
At June 30, 2006 the Company had cash on hand of $2.1
working capital of $5.0 million. For the six months ended June 30,
cash of $0.4 million was provided by operations, cash of $0.4 million
was used by investing activities, and cash of $0.2 million was used in
The strength in domestic demand for our broadcast graphics systems is
particularly focused around our HyperX HD/SD switchable systems which offer
our broadcast customers a highly flexible, scalable and cost effective
migration path to high definition broadcasting, said. Michael
Wellesley-Wesley, Chyron President and CEO, commented
The transition to
high definition television is a worldwide phenomenon with positive implication
for Chyron’s business,” said Wellesley-Wesley. Chyron will debut new products at the IBC tradeshow in Amsterdam in September.