Haivision : Announces Results for the Fourth Quarter and Year Ended October 31, 2020
January 28, 2021 at 04:08 pm EST
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MONTREAL, Jan. 28, 2021 /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 financial results for the fourth quarter and year ended October 31, 2020.
Mirko Wicha, Chairman and CEO of Haivision, said "Demand for Haivision's innovative technologies remains very strong and our investments in both R&D and sales are paying off, allowing us to capitalize on future growth opportunities."
Fiscal 2020 Financial Results
Revenue of $83.1 million, up 12.2% from $74.1 million in fiscal 2019.
Gross margin* was 76.7% exceeding the prior fiscal year gross margin by an impressive 150bp.
Adjusted EBITDA* of $9.9 million, up 57.6% from $6.3 million in fiscal 2019.
Net income of $5.9 million, up 60.8% compared to net income of $3.7 million in fiscal 2019.
Q4 2020 Financial Results
Revenue of $22.1 million, up 8.1% from $20.5 million in the fourth quarter of fiscal 2019.
Gross margin* continued to exceed expectations for the quarter at 76.4%.
Adjusted EBITDA* of $1.8 million, down from the $2.5 million in the fourth quarter of fiscal 2019, but was impacted by the $2.5 million non-recurring EBITDA overage bonus paid in Q4 2020. Going forward bonuses based on profitability in excess of budget is discontinued.
Net income of $1.5 million compared to net income of $1.6 million in the fourth quarter of fiscal 2019, but was similarly impacted by the non-recurring overage bonus paid in Q4 2020.
Key Company Highlights
On July 1, 2020, Haivision acquired Teltoo (US) Inc., a technology innovator for P2P (peer to peer) scalability, WebRTC enabled real-time video delivery and advanced Network Analytics – the Company's sixth acquisition.
Launched our MX4 decoder and MX1 ruggedized small form factor encoder.
Realized record levels of recurring revenue of $22.1 million representing ~27 percent of total revenue.
Surpassed 250 employees worldwide.
Subsequent to fiscal 2020, on December 16, 2020 Haivision completed its initial public offering and raised $30.0 million of gross proceeds, and on December 18, 2020 raised an additional $4.5 million through the closing of its over-allotment option in full, for gross proceeds of $34.5 million.
Subsequent to fiscal 2020, the Company's common shares began trading on the Toronto Stock Exchange on December 16, 2020 under the symbol "HAI".
Mirko Wicha added, "Haivision's goals for the foreseeable future are to: (i) continue the strong organic growth in our existing business; (ii) continue to focus on our acquisition strategy; and (iii) launch our native cloud and SaaS products Haivision Hub and Haivision Connect." Dan Rabinowitz, Chief Financial Officer and EVP Operations, then stated, "Haivision is well positioned to carry out its disciplined capital allocation strategy given its strong treasury position and pipeline of acquisition opportunities."
Haivision will hold a conference call to discuss its 2020 fourth quarter and full year financial results on Thursday, January 28, 2021 at 4:30 pm (ET). To register for the call, please use this link http://www.directeventreg.com/registration/event/5739367. After registering, a confirmation will be sent through email, including dial in details and unique conference call codes for entry.
* Represents a non-IFRS measure. For the relevant definition, see "Non-IFRS Measures" below. 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 fiscal 2020.
Financial Statements, Management's Discussion and Analysis and Additional Information
Haivision's consolidated audited financial statements for the fourth quarter and year ended October 31, 2020 (the "2020 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 2020 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 a number of 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 fourth quarter and year ended October 31, 2020 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", "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 in order 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 certain non-recurring expense items. "Adjusted EBITDA Margin" represents Adjusted EBITDA divided by revenue. "Gross Margin" represents gross profit divided by revenue.
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 an Emmy® 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 data)
Three months ended October 31,
Full year ended October 31,
2020
2019
2020
2019
$
$
$
$
Revenue
22,124
20,468
83,112
74,090
Cost of sales
5,212
5,198
19,364
18,424
Gross profit
16.912
15,270
63,749
55,666
Expenses
15,499
12,890
55,589
50,461
Operating profit
1,415
2,380
8,160
5,205
Financial expenses
78
35
345
(116 )
Income before income taxes
1,337
2,345
7,815
5,320
Income taxes
(150 )
766
2,018
1,643
Net income
1,487
1,579
5,797
3,677
Other comprehensive income Foreign currency translations
Haivision Systems Inc. is a Canada-based provider of real-time video networking and visual collaboration solutions. The Companyâs connected cloud and intelligent edge technologies enable organizations to engage audiences, enhance collaboration, and support decision making. It provides high quality, low latency, secure, and reliable live video at a global scale. Its products portfolio includes Haivision Hub, Haivision Connect, Haivision Media Platform, Makito X Series, Haivision Kraken, Haivision SRT Gateway, SRT Streaming Protocol, Haivision Streaming Services, Haivision EMS, Haivision Play Pro, Haivision Play and KB Series. The Companyâs solutions portfolio includes Live Video Contribution, ISR Video and IPTV Distribution. It serves customers in video networking, streaming market, broadcast, enterprise, government and defense industries. The Company has its operations in North America, Europe, and Asia.
HAIVISION SYSTEMS INC. 
