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Espial Reports First Quarter 2018 ResultsEspial (News - Alert)® Group Inc. ("Espial" or the "Company"), (TSX:ESP), today announced its first quarter financial results for the three-month period ended March 31, 2018. Recent Highlights
"We continued to make good progress on our evolution to a SaaS software company. In Q1, we added new wins for our multi-tenant Elevate SaaS video platform and grew our recurring subscription revenue by 13% on a sequential basis. We also consolidated our global engineering operations to focus investments on next generation IP and cloud solutions, while reducing costs to improve profitability" said Jaison Dolvane, CEO, Espial. "Pay TV operators continue to have concerns over their ability to innovate in an increasingly competitive industry, but have been slow to adopt next- generation platforms due to long, expensive integration timelines. Espial's Elevate helps PayTV (News - Alert) operators reduce time and risk to launch new services, rapidly innovate and respond to industry changes." The Company adopted IFRS 15 "Revenue from Contracts with Customers" with a date of initial application of January 1, 2018. As a result, the Company has changed its accounting policy for revenue recognition. The Company applied IFRS 15 using the cumulative effect method and has recognized the cumulative effect of initially applying IFRS 15 as an adjustment to the opening balance of equity at January 1, 2018. The impact of the change on the Company's condensed interim consolidated statement of loss was:
Financial Summary For the three-month period ended March 31, 2018, revenue was $5.9 million compared with revenue of $8.7 million for the three months ended March 31, 2017. Adjusted EBITDA for the first quarter of fiscal 2018 was a loss of $1.7 million compared to a loss of $1 million for the first quarter of fiscal 2017. Net loss for the quarter, which includes a one-time restructuring charge of $1.9 million, was $3.7 million, compared to a loss of $1.8 million for the first quarter of fiscal 2017. Q1 Financial Results
Cash and cash equivalents at March 31, 2018 was $34,933,015. A complete set of financial statements and management's discussion and analysis for the period ended March 31, 2018 will be available at http://www.sedar.com. Conference Call The Company will be hosting a conference call to discuss the Q1 2018 financial results on May 11, 2018 at 8:30AM EDT and the phone number to join the results discussion is:
The playback for the call will be available two hours after the call's completion and will be available until 11:59pm ET on June 10, 2018, at the following numbers and passcode: Toll-free line: +1-800-585-8367 or +1-416-621-4642, Passcode: 9387188 About Espial (www.espial.com) Espial is transforming viewing experiences worldwide by enabling video services at web speed and web scale. From immersive user experience and discovery solutions to advanced cloud-based platforms, Espial solutions help service providers manage, deliver and monetize video and entertainment services. Espial's customers span six continents, have deployed tens of million devices, and are serviced through Espial's global sales, support, and innovation centers across North America, Europe, and Asia. www.espial.com Forward Looking Statement This press release contains information that is forward looking information with respect to Espial within the meaning of Section 138.4(9) of the Ontario Securities Act (forward looking statements) and other applicable securities laws. In some cases, forward-looking information can be identified by the use of terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or the negative of these terms or other similar expressions concerning matters that are not historical facts. In particular, statements or assumptions about, economic conditions, ongoing or future benefits of existing and new customer, and partner relationships or new board nominees, our position or ability to capitalize on the move to more open systems by service providers, existing or future opportunities for the company and products (including our ability to successfully execute on market opportunities and secure new customer wins) and any other statements regarding Espial's objectives (and strategies to achieve such objectives), future expectations, beliefs, goals or prospects are or involve forward-looking information. Forward-looking information is based on certain factors and assumptions. While the company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward-looking information, by its nature necessarily involves known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from those in the forward-looking statements or could cause our current objectives and strategies to change, including but not limited to changing conditions and other risks associated with the on-demand TV software industry and the market segments in which Espial operates, competition, Espial's ability to continue to supply existing customers and partners with its products and services and avoid being displaced by competitive offerings, effectively grow its integration and support capabilities, execute on market opportunities, develop its distribution channels and generate increased demand for its products, economic conditions, technological change, unanticipated changes in our costs, regulatory changes, litigation, the emergence of new opportunities, many of which are beyond our control and current expectation or knowledge. Additional risks and uncertainties affecting Espial can be found in Management's Discussion and Analysis of Results of Operations and Financial Condition and its Annual Information Form for the fiscal years ended December 31, 2017 and 2018 on SEDAR at www.sedar.com. If any of these risks or uncertainties were to materialize, or if the factors and assumptions underlying the forward-looking information were to prove incorrect, actual results could vary materially from those that are expressed or implied by the forward-looking information contained herein and our current objectives or strategies may change. Espial assumes no obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. Non-IFRS Financial Measures Adjusted EBITDA represents net income (loss) adjusted to exclude shared-based compensation, amortization, depreciation, business restructuring expenses, interest income, other expense (income), and income tax expense. We use Adjusted EBITDA to provide investors with a supplemental measure of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS financial measures. We believe that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess our ability to meet our capital expenditure and working capital requirements. Adjusted EBITDA is not a recognized, defined or standardized measure under IFRS. Our definition of Adjusted EBITDA will likely differ from that used by other companies and therefore comparability may be limited. Adjusted EBITDA should not be considered a substitute for or in isolation from measures prepared in accordance with IFRS. Investors are encouraged to review our financial statements and disclosures in their entirety and are cautioned not to put undue reliance on non-IFRS measures and view them in conjunction with the most comparable IFRS financial measures. We have reconciled Adjusted EBITDA to the most comparable IFRS financial measure as follows:
1 Adjusted EBITDA is a non-IFRS measure. This measure is defined in the "Non-IFRS Financial Measures" of this news release. View source version on businesswire.com: https://www.businesswire.com/news/home/20180511005131/en/ |
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