Tech Vendor Earnings Reports: Avid, Dolby, Harmonic, Harris, Ross Video
Several tech vendors released their fourth-quarter earnings reports this week. Below is an overview of the reports from Avid, Harmonic, Harris, Ross Video,
Avid reported that its revenue for the fourth quarter of 2011 was $185.3 million, down 5% versus the same period a year ago, but up 12% compared to the previous quarter. Significantly, the company generated $14.4m in cash from operations during the quarter, and posted GAAP net income of $1.2m, Avid’s first positive GAAP net income since 2007.
The results exceeded the consensus estimates of analysts who were looking for revenues of $176.34m, and non-GAAP earnings of 16 cents per share. The strong performance pleased investors who drove the company’s stock up more than 20% on the news.
The results were helped by a variety of factors including the impact of a previously announced restricting program, increased spending for the 2012 Olympics, and the conversion of approximately 6,000 FCP Apple Final Cut Pro (FCP) users to Avid’s Media Composer platform following the launch of FCPX system in June 2011.
Dolby announced that its revenue for the first quarter of its 2012 fiscal year was $233.4 million, down 4% versus the same period a year ago, and down 4% versus the previous quarter. GAAP net income in the fourth quarter was $73.2m, down 15% from $86.4m last year. Despite the company’s declining revenue and net income, the results exceeded the consensus expectations of equity analysts. The overall gross margin for the quarter was 91% versus 88% last year and 87% last quarter.
Harmonic announced that its net revenue for the fourth quarter of 2011 was $143.6 million, an increase of 4% versus the same period last year, and an increase of 3% versus the previous quarter. International revenue represented 57% of sales in the quarter. Harmonic’s top 10 customers contributed 34% of total revenue in the quarter, and no single customer represented more than 10% of sales.
In Harris’ 2012 second quarter earnings report, total revenue for the quarter was $1.45 billion, slightly lower than last year. Net income in the quarter dropped 12% to $131 million.
The company did not disclose specific revenue details for its broadcast division, which was folded into the Integrated Network Solutions (INS) unit last year when Harris strategically realigned its business segments. INS revenue was 4% lower on an organic basis due to an $8m loss in Cyber Integrated Solutions and Healthcare Solutions.
During the company’s conference call, new Harris CEO William Brown said the Harris broadcast business performed well during the quarter, with revenue and operating income both up year-over-year, but the sector still has work to do.
Ross Video had a year after year increase of 59% in the first quarter of their fiscal year, recording the best first quarter in company history, Ross experienced an increase in sales in every region. Ross Video, which is privately held (and majority owned by CEO David Ross), did not disclose historic financials or other metrics such as profitability and margin performance. However, the company did disclose last year that its Q1 2011 revenue had jumped 44% versus the same period a year earlier.
According to the company, Ross Video is into its 21st year of record year over year sales and is on track to continue the streak. This streak has been entirely self-funded through both organic growth and strategic acquisitions.