Espial brings in record-breaking revenue in 2014 Q3

Ottawa-based Espial Group had a record breaking third quarter, the TV on-demand software company reported Wednesday.

Revenues for the third quarter were $5.1 million, compared with $3.8 million in the same quarter last year. That’s a 32 per cent increase.

EBITDA income was up to $0.7 million in the three months ending Sept. 30, compared with $0.4 million at the same time last year. Net income was $0.2 million for the quarter compared with a $0.3 million net loss last year.

“In Q3, we continued to innovate and demonstrate leadership around our RDK and HTML5 products.  We made good progress this quarter, including showcasing European Digital Video Broadcast (DVB) at IBC which expands our ability to target European Pay TV service providers," Espial CEO Jaison Dolvane said in a statement.

Mr. Dolvane said Espial (TSX:ESP) is also seeing continued growth interest from Pay TV service providers in open software solutions.

“We believe our focus and investments in these areas will position us to lead the industry," he said.

Licensing revenue was down about $1 million compared with the third quarter last year, but professional services revenue was up more than $2 million. Maintenance and support revenue was fairly stable, year-over-year.

The North American and European markets picked up for the company compared to the 2013 third quarter, but the Asian market dropped.

Espial’s gross margin for the third quarter was 72 per cent, down from 86 per cent the same quarter last year.

As of Sept. 30, the company had $15.8 million in cash and cash equivalents.