Shares of Ottawa-based Espial spike after Q4 revenues double

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Ottawa technology firm Espial reported a strong fourth quarter on Thursday to round out a record revenue-generating year.

Espial (TSX:ESP), which makes software and interactive platforms for video service providers, posted revenues of $12.8 million in the final quarter of its fiscal 2016 year. That’s more than double its revenues of $5.2 million over the same period a year ago.

This growth can be largely tied to the company’s licenses and royalties from providing its television interface platform software. Revenues from these streams stood at $9.8 million for the quarter, an increase of nearly 400 per cent year-over-year.

Espial’s shareholders were excited as markets opened on Friday, as the company’s share price rose to $2.65 in early morning trading, an increase of 16 per cent from Thursday’s market close.

Espial’s revenues from its professional services for the quarter were $1.1 million, a drop from $1.6 million in 2015.

The company’s revenue growth translated into a profit of $2.5 million as compared to a $1 million loss a year previous.

Regionally, Espial saw the highest revenue gains in North America, as revenues were $7.8 million in fourth quarter of 2016, compared to $2.5 million a year earlier. Revenues from its European channels also increased significantly, coming in at $4.2 million for the quarter and nearly doubling 2015 figures.

The rapid growth quarter capped off a record year for Espial, as revenues for fiscal 2016 came in at $28.6 million, a 15 per cent increase over the previous year’s figures and a record for the company.

However, the company’s strong fourth-quarter financial performance couldn’t offset softness earlier in 2016 as Espial reported a full-year loss of $4.9 million, compared to a profit of $1.3 million in 2015.

In a statement, Espial CEO Jaison Dolvane said he was “very pleased” with results from the latest quarter and fiscal 2016 as a whole.