|By Marketwired .||
|April 15, 2014 05:34 PM EDT||
TORONTO, ON--(Marketwired - April 15, 2014) - ViXS Systems Inc. (TSX: VXS) a pioneer and leader in media processing solutions, reported its fourth quarter and fiscal year results for the period ended January 31
Q4FY14 Financial Summary
- Revenue of $7.0 million.
- Comprehensive loss of $7.6 million, or $(0.15) per share, including $1.5 million of unrealized currency losses.
- 54% of revenue was from new products (those which started shipping in calendar 2013) versus 6% for same products one year ago.
- $25.6 million of cash and cash equivalents and no bank debt outstanding at end of quarter.
- Gross margin of 40.7%, including $0.4 million impact from IP/mask amortization (540 basis points). Excluding the effects of amortization, support contracts, SDKs, and variances, product margin was 49.6%.
FY14 Financial Summary
- Revenue of $30.4 million.
- Comprehensive loss of $32.6 million, or $(1.01) per share; on non-IFRS basis a loss of $17.0 million, or $(0.53) per share.
- Gross margin of 46.8%; product margin (as defined above) for fiscal 2014 was 50.1%.
Products / Customer Developments
- ViXS began shipments of XCode6400 family in F4Q14, the only shipping system-on-a-chip to support UltraHD 4K 10-bit HEVC.
- XCodePro Chipsets became the first to support HEVC processing up to Ultra UD 4 Resolutions for Cloud Content Distribution.
- ViXS announced RDK license and commencement of development of RDK platform
- ViXS 10-bit HEVC decoder the de facto standard for testing 4K HEVC streams at NAB
Customer and Partnership Announcements
- Intel selects ViXS as partner for its DOCSIS-based media processing platform supporting 10-bit HEVC for the large cable, IPTV and satellite markets. Intel has roughly half of the DOCSIS 3.0 market share.
- NTT-Plala selects XCode6400 to drive its UltraHD 4K HEVC 60p "Hikari-TV" VOD trial throughout Japan, on Sumitomo STB.
- Panasonic began shipments of their latest UltraHD 4K consumer ready television, based on ViXS XCode 6403.
- NGCodec and ViXS partnered to license technology and intellectual property for H.265/High Efficiency Video Codec Main 10 Profile decoder, targeting the mobile market.
"ViXS' most recent announcements are demonstrating that we are on track to take a market leadership position in the roll-out of HEVC 4K products," said Sally Daub, President and CEO of ViXS. "In the fourth quarter, ViXS shipped the first and currently only SoC fully compliant with Ultra High Definition 4K HEVC 10-bit. XCode 6400 was showcased by several key partners at CES and NAB 2014 setting the golden reference for 4K HEVC decode. This was followed by a partnership announcement with Intel and customer announcements with NTT-Plala and Panasonic. We believe ViXS' design wins to date, pipeline, and market momentum will fuel revenue growth in 2015 and the years ahead."
Three Month Period Ended Fiscal Years Ended January October January 31, 31, 31, January 31, Dollar amounts in U.S. dollars 2014 2013 2013 2014 2013 ------------------------------------------------------- Amounts in thousands Revenues $7,039 $7,294 $9,576 $30,416 35,697 Cost of sales 4,173 4,017 4,767 16,180 18,957 ------------------------------------------------------- Gross margin 2,866 3,277 4,809 14,236 16,740 ------------------------------------------------------- Operating expenses Research and development 4,548 4,572 5,632 17,180 26,917 Selling, general and administrative 5,808 4,233 2,650 14,634 13,449 ------------------------------------------------------- Total operating expenses (1) 10,356 8,805 8,282 31,814 40,366 ------------------------------------------------------- Income (loss) before finance costs and income, convertible preferred share revaluation adjustment and income taxes (7,490) (5,528) (3,473) (17,577) (23,626) ------------------------------------------------------- Other income (expense): Finance costs (152) 290 (227) (21,493) (472) Share offering costs - - - (509) Finance income 33 58 21 184 51 Convertible preferred share revaluation adjustment - - 6,365 29,584 ------------------------------------------------------- Total other income (expense) (119) 348 (206) (14,944) 28,654 ------------------------------------------------------- Net income (loss) before taxes ($7,610) ($5,180) ($3,679) ($32,522) 5,028 Income tax expense (10) 16 (94) (61) (118) ------------------------------------------------------- Net income (loss) for the period (7,620) (5,164) (3,773) (32,583) 4,910 Exchange difference on translating foreign operations - 3 71 (31) 27 ------------------------------------------------------- Comprehensive income (loss) for the period ($7,620) ($5,161) ($3,702) ($32,614) 4,937 ======================================================= Income (loss) per share attributed to common equity holders Basic ($0.15) ($0.10) ($0.75) ($1.01) $1.00 Diluted ($0.15) ($0.10) ($0.75) ($1.01) ($0.91) Weighted average number of common shares outstanding Basic 50,225 50,169 63 32,401 4,917 Diluted 51,110 51,404 124 32,401 27,152 (1) Includes share- based transaction expense of: Research and development 250 277 350 1,013 1,390 Selling, general and administrative 251 197 222 785 1,058 ------------------------------------------------------- 501 474 572 1,798 2,448 =======================================================
Revenues for the fourth quarter of fiscal 2014 totaled $7.0 million, compared to the $7.3 million recognized in the third quarter of fiscal 2014, and the $9.6 million recognized in the fourth quarter of fiscal 2013. Revenue in the quarter was sequentially weaker due primarily to the timing of shipments for MoCA and cloud infrastructure products including the occurrence of Lunar New Year at quarter-end which impacted our Asia market. Revenues for the fiscal year ended January 31, 2014 totaled $30.4 million, a decrease of $5.3 million compared to the prior fiscal year. This decrease in revenue was primarily due to the timing of product transitions as customers migrated from older generation products to new solutions based on our more integrated next generation products, including the recently released XCode6000 Series (which commenced commercial shipments in January 2014), but was partially offset by ViXS' growing penetration in the MoCA and cloud video infrastructure markets. Revenue from new products (those which started shipping in last 15 months) exceeded half of our revenue for 4Q fiscal 2014, as revenue from older products (such as the XCode 4000 and older lines) declined from 78% of revenue in fiscal 2013 to 38% of revenue in fiscal 2014. Gross margin for the fourth quarter of fiscal 2014 was 40.7%, which represents a 4.2% margin decrease from the previous quarter level of 44.9%, and a 9.5% decrease from fourth quarter of fiscal 2013 gross margin of 50.2%. The sequential decrease in Q4 margin was primarily due to third party IP and amortized mask costs (which most other comparable fabless companies do not expense as COGS) associated with taping out the new the XCode 6000 chip design, as well as a higher concentration of lower margin MoCA products sold during the quarter. While ViXS continues to closely manage costs the incremental amortization of third party IP and mask costs ($380 thousand in the quarter) adversely impacted Q4 margin by roughly 539 basis points. ViXS product margin would have been 49.6% in the current quarter, without these amortization and other variance related costs. Gross margin for the fiscal year ended January 31, 2014 was 46.8%, which represents a 0.1% decrease from the 46.9% level over the same period last year.
R&D expenses were flat on a sequential basis, at $4.5 million. SG&A expenses of $5.8 million were up $1.6 million sequentially, primarily due to $1.45 million of unrealized currency losses on the revaluation of our cash balance, from the weaker Canadian dollar in the quarter.
Comprehensive loss for the fourth fiscal quarter was $7.6 million, or $(0.15) per share, compared to the $5.2 million loss in the third fiscal quarter, and a $3.3 million increase from the $3.7 million loss in the fourth quarter of fiscal 2014. The $2.4 million sequential increase in comprehensive loss was mainly due to a $1.5 million unrealized currency translation loss and lower than expected revenue in the quarter. Comprehensive loss for Fiscal 2014 was $32.6 million, or $(1.01) per share, compared to a gain of $4.9 million for fiscal 2013 due primarily to the expenses and accounting related to our going public process in July and the decline in revenue.
Non-IFRS net loss for the current quarter (as defined in the Non-IFRS Financial Measures section) totaled $6.8 million, as compared to a $4.8 million loss in the previous quarter and a $4.8 million increase from the $2.0 million loss in the fourth quarter of fiscal 2013. Non-IFRS net loss for the fiscal year ended January 31, 2014 totaled $16.8 million, an $8.0 million improvement as compared to the $24.8 million loss over the same period the previous year. The year-over-year decrease in non-IFRS net loss from operations was primarily due to cost efficiencies realized from restructuring our operations in fiscal 2013 and early fiscal 2014, along with a better product mix.
For More Information
In conjunction with this announcement, ViXS management will be holding a conference call on Tuesday, April 15, 2014, at 5:00 P.M. Eastern time / 2:00 P.M. Pacific time to discuss the Company's results for the fourth quarter and fiscal 2014.
DATE: Tuesday April 15, 2014 TIME: 5:00 P.M. EST / 2:00 P.M. PST DIAL IN NUMBER: Local / International: 416-850-9144 North American Toll: Free: 1-866-400-3310 REPLAY NUMBER: Local / International: 416-915-1035 North American Toll: Free: 1-866-245-6755 Passcode: 774089 WEBCAST: http://public.viavid.com/index.php?id=108419 The webcast will be archived for 90 days
About ViXS Systems Inc.
ViXS is the pioneer and market leader in designing revolutionary media processing semiconductor solutions for the broadcasting and consumer electronics industries, with over 437 patents issued and pending worldwide, numerous industry awards for innovation, and over 29 million media processor shipments to date. ViXS is driving the transition to UltraHD 4K across the entire content value chain by providing professional and consumer grade chipsets that support the new High Efficiency Video Coding (HEVC) standard up to Main 10 Profile, reducing bandwidth consumption by 50% while providing the depth of color and image clarity needed to take advantage of higher-resolution content. ViXS' XCodePro 3xx family is ideal for UltraHD 4K infrastructure equipment, and the XCode 6xxx family of system-on-chip (SoC) products achieve unprecedented levels of integration that enable manufacturers to create cost-effective consumer entertainment devices.
ViXS is headquartered in Toronto, Canada with offices in Europe, Asia and North America. VIXS
Non-IFRS Financial Measures
This press release makes reference to non-IFRS net income (loss) and non-IFRS net income (loss) per share (basic and diluted), which are non-IFRS measures. These non-IFRS measures are disclosed as a complement to financial results prepared in accordance with IFRS in order to provide a further understanding of ViXS' results of operations from management's perspective. In particular, ViXS uses non-IFRS measures to provide investors with supplemental measures of its operating performance and highlight trends in its core business that may not otherwise be apparent solely from IFRS financial measures. ViXS management uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess ViXS' ability to meet its future capital expenditure and working capital requirements. ViXS believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers.
Non-IFRS net income (loss) is defined as total comprehensive income (loss) before stock-based compensation expense, finance costs, share offering costs expensed, listing fees, finance income, convertible preferred share revaluation adjustment, fair value adjustment on warrant liability, provision for repayable government assistance, income tax expense and exchange difference related to translating foreign operations. Non-IFRS net income and non-IFRS net income per share (basic and diluted) do not have any standardized meanings prescribed by IFRS and may not be comparable to similar measures presented by other companies. Non-IFRS net income and non-IFRS net income per share (basic and diluted) should not be considered in isolation or as a substitute for total comprehensive income (loss) and earnings (loss) per share (basic and diluted) prepared in accordance with IFRS.
Three Month Period Ended Fiscal Years Ended (in thousands of U.S. January October January dollars) 31, 31, 31, January 31, 2014 2013 2013 2014 2013 ------------------------------------------------------- Comprehensive income (loss) for the period ($7,619) ($5,161) ($3,702) ($32,614) $4,937 R&D adjustments Stock-based compensation expense 250 277 350 1,013 1,390 Provision for repayment of government assistance - 264 891 (627) (2,091) Selling, general and administrative Stock based compensation expense 251 197 222 785 1,058 Other Income/Expense adjustments Listing Fees 15 (336) - 2,421 - Share offering costs - - - - (509) Accreted interest on provision for repayment of government assistance 165 - 270 165 - Fair value adjustment on warranty liability - - - 18,219 - Other adjustments Convertible preferred share revaluation - - - (6,365) (29,584) Exchange differences on translating foreign operations - (3) (71) 31 (27) ------------------------------------------------------- Non-IFRS net loss ($6,938) ($4,762) ($2,040) ($16,972) ($24,826) =======================================================
Statements in this press release that are not historical facts constitute "forward-looking statements" within the meaning of applicable securities laws. Such statements include, but are not limited to, statements regarding ViXS' projected revenues, gross margins, earnings, growth rates, the impact of new product design wins, market penetration and product plans. The use of terms such as "may", "anticipated", "expected", "projected", "targeting", "estimate", "intend" and similar terms are intended to assist in identification of these forward-looking statements. Readers are cautioned not to place undue reliance upon any such forward-looking statements. Such forward-looking statements are not promises or guarantees of future performance and involve both known and unknown risks and uncertainties that may cause ViXS' actual results to be materially different from historical results or from any results expressed or implied by such forward-looking statements.
These factors include, but are not limited to, our history of losses and the risks associated with not achieving or sustaining profitability; our dependence on a limited number of customers for a substantial portion of our revenues; fluctuating revenue and expense levels arising from changes in customer demand, sales cycles, product mix, average selling prices, manufacturing costs and timing of product introductions; risks associated with competing against larger and more established companies; risks associated with changing industry standards such as MoCA 2.0; risks related to intellectual property, including third party licensing or patent infringement claims; risks associated with adverse economic conditions in Asia; our dependence on a limited number of supply chain partners for the manufacture of our products; and other factors discussed in the "Risk Factors" section of the Information Circular of ViXS Subco Inc. (formerly W7 Acquisition Corp.) dated June 12, 2013, prepared in connection with the going-public transaction of ViXS, a copy of which is available on SEDAR at www.sedar.com. All forward-looking statements are qualified in their entirety by this cautionary statement. ViXS is providing this information as of the date of this release and does not undertake any obligation to update any forward-looking statements contained in this release as a result of new information, future events or otherwise.
ScriptRock has been included in the list of "Cool Vendors" in the "Cool Vendors in DevOps 2015" report by Gartner, Inc.* ScriptRock provides visibility into the configuration state of an organization's IT environments, enabling the continuous delivery of mission critical services. For enterprises where downtime is not an option, ScriptRock's system-wide overwatch offers the assurance that misconfigurations and anomalies are caught before they affect the business. By satisfying this fundamental ...
May. 5, 2015 12:15 PM EDT Reads: 559
As cloud gives an opportunity to businesses to buy services externally – how is cloud impacting your customers? In his General Session at 15th Cloud Expo, Fabio Gori, Director of Worldwide Cloud Marketing at Cisco, provided answers to big questions: Do you see hybrid cloud as where the world is going? What benefits does it bring? And how does Cisco connect all of these clouds? He also discussed Intercloud and Cisco’s investment on it.
May. 5, 2015 12:00 PM EDT Reads: 5,084
SYS-CON Events announced today that B2Cloud, a provider of enterprise resource planning software, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. B2cloud develops the software you need. They have the ideal tools to help you work with your clients. B2Cloud’s main solutions include AGIS – ERP, CLOHC, AGIS – Invoice, and IZUM
May. 5, 2015 12:00 PM EDT Reads: 4,439
The Internet of Things Maturity Model (IoTMM) is a qualitative method to gauge the growth and increasing impact of IoT capabilities in an IT environment from both a business and technology perspective. In his session at @ThingsExpo, Tony Shan will first scan the IoT landscape and investigate the major challenges and barriers. The key areas of consideration are identified to get started with IoT journey. He will then pinpoint the need of a tool for effective IoT adoption and implementation, whic...
May. 5, 2015 11:45 AM EDT Reads: 1,121
There is no doubt that Big Data is here and getting bigger every day. Building a Big Data infrastructure today is no easy task. There are an enormous number of choices for database engines and technologies. To make things even more challenging, requirements are getting more sophisticated, and the standard paradigm of supporting historical analytics queries is often just one facet of what is needed. As Big Data growth continues, organizations are demanding real-time access to data, allowing immed...
May. 5, 2015 11:00 AM EDT Reads: 5,761
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch ...
May. 5, 2015 11:00 AM EDT Reads: 3,884
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on T...
May. 5, 2015 11:00 AM EDT Reads: 2,907
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY., and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides private all-in-one social intranets allowing workers to securely collaborate from anywhere in the world and from any device. Social, mobile, and eas...
May. 5, 2015 11:00 AM EDT Reads: 4,353
So I guess we’ve officially entered a new era of lean and mean. I say this with the announcement of Ubuntu Snappy Core, “designed for lightweight cloud container hosts running Docker and for smart devices,” according to Canonical. “Snappy Ubuntu Core is the smallest Ubuntu available, designed for security and efficiency in devices or on the cloud.” This first version of Snappy Ubuntu Core features secure app containment and Docker 1.6 (1.5 in main release), is available on public clouds, ...
May. 5, 2015 10:45 AM EDT Reads: 2,236
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
May. 5, 2015 10:45 AM EDT Reads: 4,366
DevOps Summit, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developmen...
May. 5, 2015 10:30 AM EDT Reads: 756
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, a...
May. 5, 2015 10:30 AM EDT Reads: 5,379
There are 182 billion emails sent every day, generating a lot of data about how recipients and ISPs respond. Many marketers take a more-is-better approach to stats, preferring to have the ability to slice and dice their email lists based numerous arbitrary stats. However, fundamentally what really matters is whether or not sending an email to a particular recipient will generate value. Data Scientists can design high-level insights such as engagement prediction models and content clusters that a...
May. 5, 2015 10:15 AM EDT Reads: 4,454
The WebRTC Summit 2015 New York, to be held June 9-11, 2015, at the Javits Center in New York, NY, announces that its Call for Papers is open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 16th International Cloud Expo, @ThingsExpo, Big Data Expo, and DevOps Summit.
May. 5, 2015 10:15 AM EDT Reads: 3,141
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover ...
May. 5, 2015 10:00 AM EDT Reads: 5,554