Chyron Corporation announce increased profits

Chyron Corporation announced that for its second quarter, the Company generated net income of $1.7 million on revenues of $8.6 million.
For the first half of 2006 the Company reported net income of $1.2 million on revenues of $13.4 million.
Second quarter revenues of $8.6 million were $2.8 million or 48% higher than the $5.8 million reported for the comparable prior year's quarter. The revenues included approximately $0.2 million in sales from the Company's ChyTV product line. Revenues of $13.4 million for the first six months were $1.6 million or 14% higher than the $11.8 million reported for the first six months of 2005.
The $1.7 million net income for the second quarter was the highest quarterly net income generated by the Company in nearly 10 years, and represented a significant improvement over the net loss of $0.2 million reported for the comparable prior year's quarter. For the first half of the year, the Company reported net income of $1.2 million, which compares to a $0.4 million net loss for the prior year's first half.
Gross margins for the second quarter were 67% compared to 65% in last year's comparable quarter, and for the first six months were 67% compared to 62% for the same period in 2005. The gross margin increases resulted from a combination of lower materials costs and product mix, with newer products providing higher average gross margins in 2006.
Operating expenses of $4.1 million for the second quarter were $0.2 million higher than the $3.9 million incurred in the second quarter of 2005, primarily due to increased spending on product development in both the broadcast graphics and ChyTV product lines. Operating expenses of $7.8 million for the first half were $0.2 million higher than the prior year's first half.
Michael Wellesley-Wesley, Chyron President and CEO, commented: "Our second quarter revenue growth and net income evidence strong year over year improvement as well as significant growth over the first quarter results. Although the second quarter benefited from orders that were delayed from the first quarter, the revenue turnaround was even stronger than I had expected."
Wellesley-Wesley added: "I am optimistic about the outlook for the remainder of the year. The revenue increase over the prior quarter was mainly due to strong domestic broadcast graphics systems sales. Domestic demand for these products continues at satisfactory levels and in the second half of 2006 I also expect a stronger performance in our international business as a result of new products we will showcase at the IBC tradeshow in Amsterdam in September."
Operating profit of $1.7 million in the second quarter is after a $0.5 million operating loss by the Company's ChyTV product line. For the first half of the year, operating profit of $1.2 million is after a $0.8 million operating loss by the ChyTV product line.
(DS)