Revenues in the fourth quarter 2011 increased 9% to $2.1 million from the same period a year ago. For the full year 2011, revenues increased 15% to $8.4 million. “The improvement was primarily due to expanded installation of digital signage systems with the company’s largest customer,” the company said.
Gross profit in Q4 2011 increased 9% to $670,000 from same year-ago period. For the full year 2011, gross profit increased 21% to $2.6 million.
Operating loss in Q4 was $1.6 million, compared to $1.2 million in the same period a year ago. For the full year 2011, operating loss was $8.0 million versus $5.7 million in 2010. “The increase was primarily due to CodecSys sales and marketing, contract labor as well as non-cash stock-based compensation which accounted for more than half of the increase,” said the announcement by Broadcast International, whose stock trades on the OTC Bulletin Board as “BCST.”
Net loss in the fourth quarter 2011 was $2.4 million or two cents per basic and diluted share, an improvement from a net loss of $7.0 million or 14 cents per basic and diluted share in Q4 2010.
The company, however, was profitable for the full year. For all of 2011, net income totaled $1.3 million or two cents per basic and diluted share, compared to a net loss of $18.7 million or 43 cents per basic and diluted share in 2010. “The annual improvement was primarily due to a decrease of $10.4 million in interest expense from restructuring a senior convertible note and a gain on derivative valuation of $15.2 million,” the company explained.
“2011 marked our third consecutive year of revenue growth, driven by the continued rollout of our digital signage solutions,” said Rod Tiede, Broadcast International’s CEO. “However, during the year we also made tremendous progress with our new flagship product, CodecSys, culminating in the fourth quarter with our first CodecSys OTT installation. This launch with Multicable propelled us into a new, hugely expansive and fast-growing market for IP video delivery.”
“This achievement reflects how we have strengthened our CodecSys marketing efforts, including establishing new channel partnerships with key industry players, including Fujitsu in Q4 and more recently Vivicast,” he added. “In fact, Fujitsu has made CodecSys such an integral part of its video compression solution that it has trained over 200 people in its global sales channels. Our first purchase order from Fujitsu is imminent as the response has been tremendous.”
What about the future? “As we advance through the beginning of 2012, we are encouraged by the continued growth of our BI Networks and our expanding CodecSys customer base, especially our recent CodecSys OTT win with TeleCable. All of our BI Network solutions now use our CodecSys technology to optimize content delivery and storage, providing the end user high quality video content with minimal bandwidth. This includes Zions Bank, who recently chose us to provide its customer’s an engaging digital marketing and merchandising network,” said Tiede.
On March 16, 2012, Broadcast International completed a $6.95 million private placement to fund the company’s growth initiatives and retire senior long-term debt at a discount to par. After paying off the long-term note and financing costs, net proceeds totaled approximately $2.5 million.