Ottawa-based Espial Group (TSX:ESP) saw net growth from mixed regional results in its first quarter of 2017, as significant gains in the firm’s North American sales channel offset drops in Europe and Asia.
Espial, which develops television interface platforms and viewing experience software, brought in revenues of $8.7 million in for the quarter ending March 31, 2017. This represents a 63 per cent increase over the same period a year ago.
Regionally, the most substantial growth was seen in North America, where revenues stood at $5.1 million for the quarter compared with $804,000 in 2016. On the other side of the ocean, however, revenues in Asia and Europe both decreased year-over-year. Asia revenues dropped to $521,000 compared with $1.1 million a year earlier and European revenues were $3.1 million, a decrease from $3.4 million in 2016.
Despite the regional discrepancies, Espial pointed to major client gains in Europe as signs of progress, launching services with Germany’s Tele Columbus and Portugal’s NOS in the quarter.
These major clients, as well as the distribution of cloud services through Espial Elevate – a product gained through acquisition last summer – to major North American operators, drove Espial’s growth this quarter, according to a statement by Espial CEO Jaison Dolvane.
The company made a slight improvement on its net loss as well, coming in at $1.8 million for the quarter as compared with $2 million in 2015.
Espial also announced the departure of board member Tawfiq Arafat, with a replacement to be nominated for election at its annual shareholder meeting on June 13. In a statement, Mr. Dolvane thanked Mr. Arafat for his “guidance, insight and counsel” during his six years with the firm.