Shares in Ottawa’s Espial (TSX: ESP) jumped more than five per cent at the opening bell on Friday morning after the local tech firm released its fourth-quarter earnings that included $1 million in SaaS subscription revenue.
The Elgin Street-based company, which develops software and platforms for smart televisions and cable companies, launched its Elevate SaaS offering in the third quarter of 2017. It powers a platform that can serve up live TV, video on demand, YouTube and Netflix to viewers and is sold to cable and telecommunications customers such as Buckeye Broadband.
“We are pleased with the early reception we have seen from service providers for this offering,” said Espial CEO Jaison Dolvane in a statement.
Overall, the company reported declining revenues and profits in the quarter. Revenues dropped 20 per cent year-over-year to $10.2 million due primarily to lower software license and royalty revenues, while Espial’s net income shrunk to $227,794 from $2.5 million a year earlier.
Espial’s shares were up 4.6 per cent, or nine cents, to $2.07 in early afternoon trading on the Toronto Stock Exchange.