Media Business

Australian Broadcasting Financials Published

philsandberg — Wed, 28 Jul 2010 04:17:02 +0000

The Australian Communications and Media Authority has released its Broadcasting Financial Results 2008-09 report. The publication is available on the ACMA website.
The commercial television sector reported AUD$3,784.4 million in broadcasting services revenue in 2008-09, a nine per cent decrease from 2007-08. The commercial radio sector reported $1,039.4 million in revenue, a decrease of four per cent on 2007-08.
Total reported broadcasting service profit was $223.2 million for commercial television, a 29.8 per cent decrease over the previous financial year, and $122.5 million for commercial radio, a 53.9 per cent decrease.
Reported overall expenditure on Australian commercial television programs was $950.6 million, a 2.4 per cent increase over the previous financial year. Reported overall expenditure on overseas programs was $430.3 million, a 7.9 per cent increase.
The Broadcasting Financial Results report is based on information supplied by the licensees of 55 commercial television licences and 273 commercial radio licences, operating as at 30 June 2009.
For commercial radio services, information is provided on the financial performance of AM and FM services in national, state, capital city and regional markets. With respect to the regional markets, further information is available on the basis of larger, medium-sized and smaller markets.
The financial performance of commercial television licensees is broken down by state, mainland capital city, multi-station and solus regional markets, networks and affiliates.
Financial results provided in the years up to 2006-07 had merged data for television networks and their affiliates. From the year 2007-08 onwards, these have appeared as separate categories.
The ACMA and its predecessors have produced the annual Broadcasting Financial Results report since 1978.
Visit http://www.acma.gov.au

Media Prima Deadline for New Straits Times Shares

philsandberg — Tue, 27 Jul 2010 04:01:53 +0000

Malaysian conglomerate Media Prima Berhad (Media Prima) has announced to Bursa Securities that it holds 90.49 percent of the listed New Straits Times Press (Malaysia) Berhad (NSTP) shares as a result of its take-over offer; and that it has received the approval of Bursa Securities for the delisting of the latter.
As Media Prima currently holds more than 90 percent of NSTP shares, Bursa Securities will suspend the trading of NSTP shares upon the expiry of five (5) working days from 22 July 2010, in accordance with its Main Market Listing Requirements. The suspension will take effect from 9 a.m. on Friday, 30 July 2010. Regardless of the suspension, NSTP shareholders still have until 5 p.m. on 6 August 2010 to take up the offer extended by Media Prima.
Group Managing Director of Media Prima, Dato’ Amrin Awaluddin said, “We are pleased to note that the delisting is going as planned. We would like to make a final call to all remaining NSTP shareholders who have not taken up our offer to consider the acceptance of our offer, as we look forward to continue to growing NSTP to its optimum operational and the potential profitability capacity of an enlarged Group.”
Once NSTP is delisted, holders of NSTP shares who have not accepted the offer will hold unlisted NSTP shares and will not be able to realize their investments in those shares through trading on Bursa Securities.
Visit http://www.mediaprima.com.my

Pace to Acquire US Broadband Gateway Company

philsandberg — Tue, 27 Jul 2010 00:36:17 +0000

UK manufacturer Pace plc has announced the proposed acquisition of 2Wire, Inc., a leading provider of advanced residential gateways and associated software and services for the broadband service provider market, for cash consideration of US$475 million (£308 million).
The acquisition price is inclusive of 2Wire’s balance sheet cash at closing, anticipated to be approximately $55 million (£36 million). 2Wire has established customer relationships in the tier one telco market, in particular with service providers in North America. AT&T has been a customer of 2Wire for 10 years and 2Wire provides software and hardware solutions to enable AT&T’s U-verseSM suite of services that includes multiroom high definition TV, high-speed broadband and telephony. 2Wire is currently owned by a consortium including Alcatel-Lucent, AT&T, Telmex, and Oak Investment Partners.
Pace intends to finance the Acquisition from existing cash resources, together with new bank facilities. The new bank facilities are currently under negotiation and the Acquisition is conditional, inter alia, upon final agreement being reached on the terms of these facilities.
The Pace Board believes the Acquisition is a logical extension of its successful strategy and will enhance its established position in cable and satellite markets in the US with entry into the tier one telco market. At the same time, 2Wire’s software and gateway expertise will support Pace’s development of its home entertainment convergence strategy.
Pace says that following the completion of the Acquisition, it will become not only the number one global digital set-top box company, but also the number one provider of telco residential gateway devices in the US and the number three globally.
The Acquisition is expected to be earnings and cashflow enhancing for the Company in the first full financial year of ownership.
According to Neil Gaydon, Chief Executive Officer of Pace, “This acquisition will strengthen our Americas business, extending Pace’s US market coverage with entry into the tier one telco market. We have built a strong position in the US with cable and satellite operators and 2Wire, with its expertise in the broadband residential gateway market, will enable us to address a full range of US operator requirements. 2Wire’s software and gateway expertise will further drive development of our home entertainment convergence strategy. The transaction introduces deep client relationships with important customers including AT&T and further develops our platform to deliver ongoing sustainable growth.”
Pasquale Romano, Chief Executive Officer of 2Wire, added, “Pace is an excellent strategic fit for the 2Wire business and will enable us to take our products and services to the next level of their development. The combined customer base, engineering capability and product breadth of Pace and 2Wire make this a compelling transaction for our customers, our employees and our end users globally.”
Tim Harden, President – Supply Chain and Fleet Operations, AT&T said “AT&T looks forward to continuing our working relationship with 2Wire under Pace’s ownership.”
The Acquisition is conditional on (amongst other things) 2Wire shareholder approval, certain regulatory consents and finalisation of Pace’s bank financing arrangements. In view of its size relative to the Company, the Acquisition is also conditional upon Pace shareholder approval.
A circular including details of the Acquisition and the bank financing arrangements and containing notice of a General Meeting of the Company (at which a resolution seeking the requisite Pace shareholder approval will be proposed), is expected to be despatched to shareholders within 7 – 8 weeks.
The transaction is expected to close in the fourth quarter of the current financial year following the satisfaction or waiver of all conditions. Evercore Partners is acting as Sponsor and sole financial adviser to Pace. RBS Hoare Govett and JPMorgan Cazenove are acting as corporate brokers to Pace.

Buyer Found for Grass Valley Broadcast & Professional

philsandberg — Tue, 27 Jul 2010 00:07:34 +0000

Francisco Partners, a San Francisco, California-based private equity firm focused on investments in technology-based companies, has made a binding offer to Technicolor (Euronext Paris: 18453; NYSE: TCH) for the acquisition of the Grass Valley Broadcast & Professional business activities.
With nearly US$5 billion of capital under management, Francisco Partners is one of the world’s largest technology-focused private equity funds. The firm was founded to pursue structured investments in technology and technology-based companies with a strong foundation and secure market position. Francisco Partner targets investments in private companies, with transaction values ranging from $30 million to $2 billion. Since its inception, Francisco Partners has invested in excess of $4 billion of equity capital in over 50 technology companies.
“We are excited about this opportunity, as Grass Valley’s market leadership is clearly evident,” said David Golob, Partner at Francisco Partners. “The business has an unrivalled brand identity and company heritage, a long history of innovation, team members that are dedicated to their customers’ success, and an impressive product portfolio. We are looking forward to the opportunity to work closely with Grass Valley’s management to create a company that leverages the strong entrepreneurial spirit within Grass Valley, allowing them to achieve even greater success.”
The binding offer from Francisco Partners is for 100 percent ownership of the current Grass Valley Broadcast & Professional business, which would operate as “Grass Valley” going forward. This includes the camera, content repurposing, editing, master control, modular, news production, production automation, routing, servers, storage, and switching product lines including their entire product portfolios, the R&D centers and factories around the world, the Sales & Systems activities and Customer Support organization worldwide, as well as the management and administrative support functions dedicated to the business. This business perimeter and associated product lines for which the offer was made by Francisco Partners represent the core of what the market historically knows as Grass Valley products.
“This is positive news for the company and our customers,” said Jeff Rosica, Senior Vice President and head of the Grass Valley Broadcast & Professional business. “We are encouraged that we are taking a major step towards completing the divestiture process with this binding offer from Francisco Partners. The opportunity to be part of Francisco Partner’s portfolio gives Grass Valley a solid foundation to continue to work tirelessly to maintain our core values of innovation, performance, and passion that have benefitted our customers throughout the years. Our customers worldwide will continue to receive the high quality and service that they have come to expect from Grass Valley, with continued focus on raising the bar in our industry.”
The Transmission and Headend businesses, which are in the process of being separated from the Grass Valley Broadcast & Professional business, are not included in the offer received. Technicolor will continue the planned divestiture of these businesses separately. These businesses plan to individually operate going forward.
Subject to final agreement, regulatory approval, and applicable notification requirements and, when it is requested, the prior consultation of staff representatives, it is expected that the transaction can be completed before the end of 2010.
Visit http://www.grassvalley.com

Ross Video to Acquire Codan Broadcast

philsandberg — Mon, 26 Jul 2010 23:59:07 +0000

Canada’s Ross Video Limited and Australian-based Codan Limited have jointly announced that Ross has entered into a letter of intent to buy 100% of the shares of Codan’s wholly-owned Melbourne-based subsidiary, Codan Broadcast Products Pty Ltd. The sale, subject only to the finalization of due diligence, is scheduled for completion on 31 August, 2010.
Ross plans to continue operations from Codan Broadcast’s current premises in Melbourne, Australia with the name of the business and product branding changing to Ross Video. Codan Broadcast products will become part of the Ross product portfolio.
Key new products that Ross will acquire include a flagship line of routing systems that will complement and enhance the already extensive Ross product portfolio. Ross says that Codan Broadcast’s significant presence in the Australian market will provide it with even greater access to and better support for Australian customers.
“We are excited about the addition of Codan Broadcast,” said David Ross, CEO Ross Video. “And have long admired the superior design and engineering of their products. We are delighted that they will become part of Ross and that customers globally will benefit from the dramatically expanded market access that Ross brings to the table.”
“We believe that this transition is great for Codan Broadcast customers,” commented Mike Heard, CEO Codan Broadcast. “Ross has a great reputation for customer service and support as well as a long track record of continuing to invest in product development and product enhancements.”
Visit http://www.rossvideo.com

Harmonic to Acquire Omneon

philsandberg — Fri, 07 May 2010 01:00:38 +0000

SUNNYVALE, CALIF. — MAY 6, 2010 — Harmonic Inc. (NASDAQ: HLIT) and Omneon, Inc., a leading provider of video production and playout solutions for many of the world’s premier media companies, has announced the signing of a definitive agreement pursuant to which Harmonic would acquire Omneon for an enterprise value of approximately $274 million in cash and Harmonic stock. The proposed acquisition would combine Harmonic’s market-leading position in video delivery infrastructure with Omneon’s market-leading technology for the production, management and distribution of digital media.
“This proposed combination will position Harmonic to become a global leader in video infrastructure for the digital media industry,” said Patrick Harshman, President and CEO of Harmonic. “Media companies are being driven by ever-increasing demand for video content coupled with consumers’ desire to consume video anytime and anywhere. At the same time, the dramatic growth of video delivery over broadband and wireless networks is blurring traditional boundaries between content producers and service providers. With our deep customer relationships with content producers and service providers, and with our market leading technologies that span content acquisition through delivery, we believe that our combined company will be uniquely positioned to capitalize on these trends and to accelerate revenue growth.”
Omneon’s customer base includes the BBC, BSkyB, CBS, Comcast, Discovery Communications, Echostar, NBC Universal, News Corporation, Televisa, Turner Broadcasting System, Viacom and many other leading media companies worldwide.
For the year ended December 31, 2009, Omneon’s revenues were approximately $105 million, of which 67% were outside the United States, with no single customer representing more than 10% of total revenue. Omneon’s gross margin was 58% in 2009. Omneon has approximately 280 employees worldwide, and is headquartered in Sunnyvale, California, with research and development facilities in Sunnyvale and Beaverton, Oregon.
“The combined company will have industry-leading technology and expertise in video compression, processing and delivery, video-optimized storage, production and playout servers, and media management,” said Suresh Vasudevan, CEO of Omneon. “Not only are the technologies complementary, but we see unique opportunities to leverage our technology adjacencies and drive market-leading innovation. We are very excited about this combination and the opportunities it creates for our customers and employees.”
The products and solutions of the combined company are deployed with over 2,000 customers across more than 100 countries, for broadcast and on-demand video services delivered via cable, satellite, telco, terrestrial, broadband and mobile networks. The company will have a combined video-focused global R&D organization of 450 engineers, a combined global sales and service organization of 330 people and a network of over 250 global sales channel partners.
Under the terms of the definitive agreement, which has been approved by the Boards of Directors of both companies, Harmonic will pay $190 million in cash and issue approximately 17.1 million shares of its common stock. This represents an enterprise value of approximately $274 million, based on the closing price of Harmonic common stock on May 5 and is net of Omneon’s cash balances which are expected to be approximately $32 million at closing. The proposed acquisition is subject to customary closing conditions and regulatory approvals, and is expected to close in the third quarter of 2010.
The proposed acquisition is also subject to the approval of Omneon’s stockholders, and Harmonic has entered into voting agreements with holders of a majority of Omneon’s outstanding shares of capital stock, pursuant to which such Omneon stockholders agree to vote in favor of the transaction.
Most of the Omneon executive management team is expected to join Harmonic at closing, including Mr. Lawrence Kaplan, a founder of Omneon, and Mr. Vasudevan, who previously held senior executive positions at NetApp, Inc., and also worked for McKinsey & Company, an international management consulting firm.
The transaction is anticipated to be neutral to Harmonic’s non-GAAP net income in 2010 and accretive to
non-GAAP net income in 2011, exclusive of the amortization of intangibles and non-recurring charges such as restructuring and transaction costs. Harmonic will determine the appropriate purchase accounting for the transaction at closing and, accordingly, cannot reasonably estimate the impact on GAAP net income at this time.
BofA Merrill Lynch acted as exclusive financial advisor to Harmonic in connection with this transaction.
Visit www.harmonicinc.com and www.omneon.com

IMAX Reports First Quarter 2010 Results

philsandberg — Fri, 07 May 2010 00:46:43 +0000

IMAX Corporation (Nasdaq:IMAX) (TSX:IMX) has reported adjusted EBITDA (as defined by the Company’s credit facility) of $42.0 million and $93.4 million for the first quarter and last twelve months ended March 31, 2010, respectively, compared to $7.0 million and $15.1 million for the first quarter and last twelve months ended March 31, 2009, respectively. Total revenue for the first quarter ended March 31, 2010 increased 120% to $72.8 million, a record for a single quarter for the Company, compared to total revenue of $33.1 million in the same period last year. First quarter 2010 adjusted net income, which excludes the impact of variable stock compensation, was $35.3 million, or $0.53 per diluted share, compared to an adjusted net loss of $2.6 million, or $(0.06) per share on the same basis last year. Reported net income was $26.6 million, or $0.40 per diluted share, for the first quarter ended March 31, 2010, compared to a reported net loss of $(2.6) million, or a net loss of $(0.06) per share for the first quarter last year.
During the first quarter of 2010, the Company signed contracts for 41 theatre systems including 19 joint revenue sharing system arrangements and 22 sales arrangements, of which 14 were digital system upgrades. This compares to a total of three system signings in the first quarter of 2009, all of which were system sales, and a total of 35 system signings for all of fiscal 2009. Since quarter-end, the Company has signed deals for another 13 theatre systems, many of which have been announced throughout the month of April. “We are very pleased with our first quarter financial results,” said IMAX Chief Executive Officer Richard L. Gelfond. “Our strong operating and financial performance demonstrates what can happen when great films are combined with our growing theatre network. While we are pleased to have generated record quarterly financial results, we believe the longer term benefits of titles such as Avatar and Alice in Wonderland to our business transcend a single quarter. Such benefits are perhaps best evidenced by the number of theatre deals we are doing, which will fuel additional growth for the Company over the long-term, and an increased level of tentpole movies being committed to the IMAX theatre network.”
Adjusted first quarter 2010 net income and adjusted first quarter 2009 net loss exclude the impact of the changes in value of the Company’s variable stock compensation. The first quarter of 2010 included an $8.7 million charge resulting primarily from the increased value of the Company’s variable stock compensation at the end of the period (primarily driven by the $4.68 increase in the Company’s stock price over the course of the first quarter, which impacts variable stock compensation), as compared to less than a $0.1 million charge from variable stock compensation in the first quarter of 2009. For a reconciliation of reported net income (loss) to adjusted results and the definition of adjusted EBITDA as defined by the Company’s credit facility, please see the tables at the end of this press release.
Revenue from joint revenue sharing arrangements increased nearly nine-fold to $18.9 million in the first quarter of 2010, compared to $1.9 million in the prior year period. In the first quarter, the Company installed a total of six systems under joint revenue sharing arrangements, including one digital upgrade, compared to 22 such installations, including five digital upgrades, in the first quarter of 2009. As of March 31, 2010, a total of 122 theatres under joint revenue sharing arrangements were in operation, a 77% increase compared to 69 joint revenue sharing theatres operating as of March 31, 2009. Joint revenue sharing theatres open for the entire first quarter of 2010 generated gross box office per screen averages of approximately $665,000 compared to $152,000 last year.
In the first quarter of 2010, the Company recognized revenue on three full, new theatre systems with an average value of $1.6 million, compared to five in the first quarter of 2009, which also had an average value of $1.6 million. The Company also installed nine digital system upgrades in the fist quarter of 2010 compared to three in the same year-ago period. The Company has strategically elected to sell digital system upgrades at a lower sales price and gross margin than a new theatre system as the Company believes this initiative will help to drive box office revenue for its customers and IMAX by maximizing the number of IMAX titles they can show. Each period also included the sale of one used system. Due to the lower number of new systems installed this year versus last year, the increased amount of digital system upgrades, and settlement revenue of $1.2 million last year compared to zero this year, revenue from IMAX systems decreased 33% to $11 million in the first quarter of 2010, compared to $16.5 million in the first quarter of 2009.
Mr. Gelfond commented, “Our strategic initiative to upgrade our film-based network to digital continues to progress well, and our customers continue to show interest in upgrading their theatres from film to digital. Over the past 15 months, we have upgraded 35 film-based systems, and that pace has accelerated over the past six months. These digital upgrades will help to drive our box office revenue as well as that of our customers by maximizing the number of IMAX titles they can show.”
Given recent deal signings for new systems, the Company now expects to install 40 to 45 joint revenue sharing theatres from backlog in fiscal 2010, up from its previous outlook of 35 to 40 installations. In addition, the Company expects to install approximately 15 to 20 new sales and sales-type lease systems (excluding upgrades) in 2010, up from its previous outlook of approximately 10 to 15 new installations. In any given year, the Company may also have a number of theatre deals that sign and install within the same calendar year. In addition, system installations can slip from period to period, often for reasons outside of the Company’s control.
For the first quarter of 2010, total film revenue increased 275% to $29.3 million, compared to $7.8 million in the first quarter of 2009. Production and IMAX DMR(R) revenues increased to $23.5 million, compared to $3.7 million in the year ago period. First quarter results were driven by the stronger film slate in 2010 versus the same quarter in 2009 and the increased number of IMAX(R) theatres as compared to a year ago.
Gross box office from DMR titles was $232.2 million in the first quarter of 2010, compared to $28.0 million in the first quarter of 2009. The primary drivers of gross box office in the first quarter were Twentieth Century Fox’s Avatar: An IMAX 3D Experience(R) and Disney’s Alice in Wonderland: An IMAX 3D Experience. Avatar has generated approximately $231 million of worldwide box office to date ($171.9 million was captured in the first quarter of 2010). The 179 domestic theatres that played Avatar since December 18th had a per screen average of $714,000, and the international per screen average was $1,116,696. Alice in Wonderland has generated approximately $58.9 million in worldwide box office to date ($51.6 million of which was captured in the first quarter), for a domestic per screen average of $200,000 and international per screen average of $242,000. On March 26th, DreamWorks Animation’s How To Train Your Dragon:An IMAX 3D Experience was released day-and-date to IMAX theatres and has generated approximately $26.3 million in worldwide box office to date ($8.2 million of which was captured in the first quarter) for a per screen average of approximately $107,000 to date.
The Company commented that second quarter 2010 gross box office to date equals $30.0 million, a 78% increase compared to $16.8 million in the same timeframe for the second quarter of 2009.
First quarter 2010 gross margin increased to $48.3 million, or 66.4% of revenue, from $14.2 million, or 42.9% of revenue in the first quarter of 2009. The primary drivers of the increase in gross margin were the Company’s joint revenue and DMR film business segments.
First quarter 2010 selling, general and administrative expenses, excluding the $8.7 million variable stock compensation charge, was $10.8 million, or 14.8% of revenue, relatively flat compared to $10.8 million, or 32.7% of revenue, on the same basis in the first quarter of 2009. Reported first quarter selling, general and administrative expense was $19.5 million, compared to $10.9 million in the year ago period.
The Company ended the first quarter with cash and cash equivalents of $23.5 million, compared to $18.7 million at the end of last year’s first quarter and $20.1 million as of year end 2009. During the quarter, the Company paid down $10 million of its bank debt, resulting in net debt of $16.5 million as of quarter end, compared to $161.3 million at the end of last year’s first quarter and $29.9 million as of year end 2009.
Mr. Gelfond concluded, “2010 is off to a great start, and we are pleased with the positive momentum fueling our business. We believe we have a very strong film slate for 2010, and with yesterday’s film deal inked with Warner Bros. and new theatre announcements, we are beginning to paint a picture of 2011 and beyond. We are particularly pleased with the many theatre signings overseas, where our brand is gaining traction and where we see much of our future growth residing, providing a complement to our brand’s strong foothold in North America.”
As of March 31, 2010, the Company’s backlog consisted of 156 theatre systems, compared to 190 theatre systems in backlog as of March 31, 2009. Included in the 2010 and 2009 system backlog totals were 56 and 89 theatres, respectively, under joint revenue sharing arrangements and 100 and 101 theatres, respectively, under sales and sales-type lease arrangements. As of March 31, 2010, 172 digital systems were in operation, compared to 73 as of March 31, 2009.

2010 Film Slate

Turning to the 2010 film slate, Paramount Pictures and Marvel Entertainment will release Iron Man 2: The IMAX Experience day-and-date to 182 domestic IMAX theatres on May 7th and many of the 67 international IMAX theatres slated to play the film start this weekend. Following Iron Man 2, the Company’s announced 2010 film slate to date includes DreamWorks Animation’s Shrek Forever After: An IMAX 3D Experience(May 2010); Walt Disney Pictures’ Prince of Persia: Sands of Time: The IMAX Experience (May 2010, international only); Walt Disney Pictures’ Toy Story 3: An IMAX 3D Experience (June 2010); Summit Entertainment’s The Twilight Saga: Eclipse: The IMAX Experience (June 2010); Warner Bros. Pictures’ Inception: The IMAX Experience (July 2010); Warner Bros. Pictures’ Legends of the Guardian: The Owls of Ga’hoole: An IMAX 3D Experience (September 2010); Warner Bros. Pictures’ Harry Potter and the Deathly Hallows: Part 1: An IMAX 3D Experience(November 2010); and Walt Disney Pictures’ Tron Legacy: An IMAX 3D Experience (December 2010).
The Company also announced a multi-picture deal with Warner Bros. Pictures to release up to 20 pictures in the IMAX format between 2010 and 2013. Under the agreement, Warner Bros. movies that have already been agreed to be released in IMAX are the above referenced Legends of the Guardian: The Owls of Ga’Hoole 3D (September 24, 2010) and Harry Potter and the Deathly Hallows: Part 1 (3D) (November 19, 2010), as well as Harry Potter and the Deathly Hallows: Part II (3D) (July 15, 2011); Happy Feet 2 (3D) (November 18, 2011); and The Hobbit (December 2012). The Company remains in active discussions with all of the major studios regarding potential future titles.
Visit www.imax.com

Crown Castle Reports Results, Raises 2010 Outlook

philsandberg — Fri, 07 May 2010 00:41:23 +0000

Transmission service provider Crown Castle International Corp. (NYSE:CCI) has reported results for the quarter ended March 31, 2010.
“We had a very good first quarter, exceeding the midpoint of our Outlook for site rental revenue, site rental gross margin, Adjusted EBITDA, and recurring cash flow,” stated Ben Moreland, President and Chief Executive Officer of Crown Castle. “We continue to see significant tenant activity, particularly related to the deployment of mobile data services. Based on our strong first quarter results and our expectations for the rest of 2010, we have raised our full year 2010 Outlook, which now suggests annual site rental revenue and Adjusted EBITDA growth of 8% and 11%, respectively. Longer term, I am excited about Crown Castle’s position relative to the deployment of the mobile Internet across a number of devices and wireless networks. With the largest tower portfolio in the most populated cities in the U.S and the highest level of customer service in our industry, we have a unique ability to benefit from the growth in mobile data services. In the last couple of quarters, we have begun to see early signs of these mobile data deployments in our results, and I believe significant opportunities lie ahead.”

CONSOLIDATED FINANCIAL RESULTS

Total revenues for the first quarter of 2010 increased 10% to $444.3 million from $402.9 million in the same period in 2009. Site rental revenues for first quarter 2010 increased $39.2 million, or 11%, to $406.9 million from $367.7 million for the same period in the prior year. Site rental gross margin, defined as site rental revenues less site rental cost of operations, increased 14% to $293.1 million, up $35.1 million in the first quarter of 2010 from $258.0 million in the same period in 2009. Adjusted EBITDA for first quarter 2010 increased $31.9 million, or 13%,to $274.3 million, up from $242.4 million for the same period in 2009.
Recurring cash flow, defined as Adjusted EBITDA less interest expense less sustaining capital expenditures, increased from $131.8 million in the first quarter of 2009 to $148.9 million for the first quarter of 2010, up 13%. Recurring cash flow per share, defined as recurring cash flow divided by weighted average common shares outstanding, was $0.52 in the first quarter of 2010 compared to $0.46 in the first quarter of 2009, an increase of 12%.
Net income (loss) attributable to CCIC stockholders was $(119.3) million for the first quarter of 2010, inclusive of $73.3 million of net losses from interest rate swaps and $66.4 million of net losses from repayments, purchases and early retirement of debt, compared to $10.6 million for the same period in 2009. Net income (loss) attributable to CCIC common stockholders after deduction of dividends on preferred stock was $(124.5) million in the first quarter of 2010, compared to $5.4 million for the same period in 2009. First quarter 2010 net income (loss) attributable to CCIC common stockholders after deduction of dividends on preferred stock per common share was $(0.43), compared to $0.02 in the first quarter of 2009.

INVESTMENTS AND LIQUIDITY

“I am very pleased with our operating results and investment and financing activities thus far in 2010,” stated Jay Brown, Chief Financial Officer of Crown Castle. “During January 2010, we were able to refinance approximately 30% of our outstanding indebtedness at a weighted average annual interest rate of 5.75% with a weighted average expected maturity of 8.7 years. The completion of this refinancing enabled us to return to investing our capital in the purchase of our common shares, as well as increase the purchases of land beneath our towers. We remain focused on investing our cash flow on activities that we believe will maximize long-term recurring cash flow per share. Further, given the strong performance of our business in the first quarter of 2010 and our expectations for the second half of 2010, we have increased our 2010 Outlook for site rental revenue, site rental gross margin, Adjusted EBITDA and recurring cash flow.”
On January 15, 2010, Crown Castle issued, at par, $1.9 billion of Senior Secured Tower Revenue Notes. These notes were issued at a weighted average interest rate of 5.75%. The proceeds of these notes were used to repay in full the $1.64 billion outstanding of the Senior Secured Tower Revenue Notes, Series 2005-1. Furthermore, in the first quarter, Crown Castle purchased $461.7 million of senior and senior secured notes issued by it and certain of its subsidiaries. A summary of our current debt outstanding is set forth below under “Other Calculations.”
During the first quarter of 2010, Crown Castle purchased 2.8 million of its common shares using $108.7 million in cash at an average price of $38.80 per share. In addition, in April 2010, Crown Castle purchased 0.8 million of its common shares using $30.0 million in cash at an average price of $37.61 per share. Pro forma for the common shares purchased in April 2010, common shares outstanding at March 31, 2010 were 286.0 million. Since January 2003, Crown Castle has spent $2.4 billion to purchase approximately 92 million of its common shares and potential shares, at an average price of $25.57 per share.
During the first quarter of 2010, Crown Castle invested $36.9 million in capital expenditures comprised of $20.2 million of land purchases, $4.6 million of sustaining capital expenditures and $12.1 million of revenue generating capital expenditures, consisting of $9.3 million on existing sites and $2.8 million on the construction of new sites.
Additionally, since January 1, 2010, Crown Castle has used $122.9 million of cash to settle a portion of the outstanding swap liability due to be cash settled on June 15, 2010 (”June 2010 Swap”). Based on current interest rates, the remaining balance on the June 2010 Swap liability as of April 27, 2010 is approximately $93.0 million.
As of March 31, 2010, pro forma for the aforementioned share purchases and swap settlements in April 2010, Crown Castle has approximately $300.5 million in cash and cash equivalents (excluding restricted cash) and $400 million of availability under its revolving credit facility.
In addition to the tables and information contained in this press release, Crown Castle will post supplemental information on its website at http://investor.crowncastle.com

Technicolor: Two Committed Receivables Facilities

philsandberg — Thu, 06 May 2010 23:24:54 +0000

Paris, April 27, 2010 – As foreseen in its debt restructuring plan, Technicolor (Euronext Paris: 18453; NYSE: TCH) signed last week two committed receivables facilities.
In France, Technicolor’s wholly owned subsidiary, Thomson Telecom SAS, signed a €100 million 3 year factoring facility with GE Factofrance.
In the U.S., certain of our U.S. subsidiaries signed with Wells Fargo Capital Finance, LLC, part of Wells Fargo & Company (NYSE:WFC), a $125 million 3 year credit facility, secured by the subsidiaries’ receivables.
Both of these facilities are subject to the fulfillment of customary conditions precedent prior to being available for advances and borrowings. We expect these facilities along with the Group’s cash balances will fulfill the ongoing liquidity needs of the Group following its debt restructuring, which is expected to close in late May.
Visit www.technicolor.com

IDC Fiscal 2010 Fourth Quarter, Year End Results

philsandberg — Thu, 06 May 2010 23:21:46 +0000

OTTAWA, ONTARIO - International Datacasting Corporation (TSX:IDC), a leader in providing advanced solutions for the distribution of broadband content via satellite, announced its financial results for the three- and 12-month periods ended January 31, 2010. All figures are in Canadian dollars unless otherwise stated.

Fiscal 2010 Financial Summary

Revenue was $23.3 million, compared to $29.1 million for fiscal 2009.
Gross margin was 43%, compared to 47% last year.
EBITDA was negative ($1.5 million), compared to $2.6 million for fiscal 2009.
Net loss was $6.6 million, or $0.12 per share, compared to earnings of $3.0 million, or $0.05 per share, for fiscal 2009.

Q4 Fiscal 2010 Financial Summary

Revenue was $6.9 million, compared to $6.4 million in Q4 fiscal 2009.
Gross margin was 40%, compared to 57% in Q4 fiscal 2009.
EBITDA was negative ($1.1 million), compared to $ 0.7 million in Q4 fiscal 2009.
Net loss was $2.9 million, or $.05 per share, compared to earnings of $1.6 million, or $.03 per share, in Q4 fiscal 2009.

“Fiscal 2010 was a challenging year for IDC as the economic downturn led to an industry-wide reduction in capital expenditures,” said Frederick Godard, President and CEO, International Datacasting Corporation. “I believe that IDC’s core technology offering, which was strengthened through the purchase of additional product lines last year, offers significant potential for growth and we are actively pursuing these opportunities.”
“Going forward, we are focused on profitability and we are taking measures to increase our gross margins and to further streamline our operations in order to improve operational efficiencies.” “We are uniquely positioned for the market opportunities that are available to us, including the roll out of digital cinema, IPTV and 3D live events,” Mr. Godard concluded.

Fiscal 2010 Financial Review

The Corporation’s consolidated revenues decreased by 20% from $29.1 million in fiscal 2009 to $23.3 million in fiscal 2010. Revenues for the Satellite Equipment segment decreased 22% from $26.5 million in fiscal 2009 to $20.6 million in fiscal 2010. Without the sales from the newly acquired Tiernan and Logic Innovations product lines, the Satellite Equipment segment revenues would have declined by $9.3 million or 35%. In fiscal 2009 the Corporation had a single order that accounted for 23% of Satellite Equipment revenue while in fiscal 2010 no order accounted for an equal percentage of revenue. Absent this order for comparative purposes, the Satellite Equipment revenues would have declined by $3.2 million or 12%.
The Corporation attributes this decline to a continued slowdown in capital equipment spending in this fiscal year resulting from the current global economic situation and is expecting further potential volatility on a quarterly basis due to order timing as the markets continue to adjust.
Included in Satellite Equipment segment sales was revenue from Tiernan and Logic Innovations’ products of $3.2 million and $0.2 million respectively in fiscal 2010. The Broadcast Services segment’s revenues increased 8% from $2.5 million in fiscal 2009 to $2.7 million in fiscal 2010. The increase in Broadcast Services revenue is due to the introduction of new services that resulted from the segment’s contract renewal that occurred in December 2008, and the Corporation expects this increased level of service revenue to continue for the remainder of the contract.
Gross profit for fiscal 2010 was $10.0 million, or 43% of revenues, compared to $13.8 million, or 47% of revenues, in fiscal 2009. The year-over-year decline was primarily due to one-time costs the Company incurred in the second half of the year related to transitioning Tiernan product manufacturing to IDC’s outsourced facilities, as well as a revaluation of existing Tiernan inventory as required by accounting rules. Excluding the impact of the acquisition of the Tiernan product lines, gross profit for fiscal 2010 was $9.3 million, or 46% of revenue.
Primarily as a result of the addition of staff related to the Company’s acquisition of the Tiernan and Logic Innovations product lines, IDC realized an increase in operating expenses. In particular, fiscal 2010 Selling, General and Administrative expenses increased to $8.3 million from $7.8 million in fiscal 2009, and Research and Development expenses increased to $4.4 million from $3.4 million in fiscal 2009.
In fiscal 2010, IDC realized a net loss of $6.6 million or $0.12 per share, which included a $2.5 million non-cash goodwill impairment that the Company recorded in Q2 fiscal 2010. This is compared to net earnings of $3.0 million, or $0.05 per share for fiscal 2009.
Cash used in operating activities for fiscal 2010 was $0.4 million, compared to $1.6 million in cash generated by operating activities in fiscal 2009. As at January 31, 2010, IDC had cash of $4.7 million and working capital of $11.8 million, compared to $7.6 million in cash and working capital of $14.7 million as at January 31, 2009.
A complete set of financial statements and management’s discussion and analysis for the three and 12 months ended January 31, 2010 will be available at www.sedar.com or on the Investor Information section of IDC’s website at www.datacast.com.