MONTREAL, June 11 2025 /PRNewswire/ - Haivision Systems Inc. ("Haivision" or the "Company") (TSX:HAI), a leading global provider of mission critical, real-time video networking and visual collaboration solutions, today announced its results for the second quarter ended April 30, 2025.
"We have announced a number of new product introductions for our Broadcast and Mission markets," said Mirko Wicha, President and CEO of Haivision. "In the Broadcast space, the Falkon X2 is our next generation, lower cost 5G transmitter, which enables Haivision to compete at a price point we could not participate in previously. Meanwhile the Kraken X1 Rugged delivers low latency encoding and transcoding 'at the edge' enhanced by AI processing capability to support the toughest demands of our Mission customers. We expect that these products, as well as other innovative product introductions will return Haivision to double-digit revenue growth in 2026 and beyond."
Q2 2025 Financial Results
- Revenue of $34.2 consistent with prior year, overcoming our move from offering bespoke "integrator" solutions that include lower margin, third-party components, and represents a sequential quarterly increase of 21.7%.
- Gross Margins* were 73.0%, a notable improvement from 71.7% for the same prior year period.
- Total expenses were $28.2 million, an increase of $5.5 million from the same prior year period, but includes non-recurring expense of $1.5 million for legal settlement, interest, and fees and the impact of a weaker Canadian dollar.
- Operating loss for the quarter was $3.2 million compared to operating income of $1.8 million for the same prior year period.
- Adjusted EBITDA* was $1.7 million compared to $5.1 million for the same prior year period.
- Adjusted EBITDA Margins* was 4.9% compared to 14.8% for the same prior year period.
Financial Results for the six months ended April 30, 2025
- Revenue was $62.5 million, a $6.3 million decrease from the same prior year period and reflects the continued transition away from the integrator model in the control room space.
- Gross Margins* were 72.5%, a modest improvement from 72.3% in the same prior year period.
- Total expenses were $50.7 million, an increase of $5.1 million from the same prior year period, but includes non-recurring expense of $1.7 million for legal settlement, interest and fees and the impact of a weaker Canadian dollar.
- Operating loss was $5.4 million compared to an operating income of $4.1 million for the same prior year period.
- Adjusted EBITDA* was $2.2 million, compared to $10.3 million for the same prior year period.
- Adjusted EBITDA Margins* were 3.6% compared to 14.9% for the same prior year period.
Recent Company Highlights
- Haivision announced the new Kraken X1 Rugged which unleashes uncompromising power and AI-driven intelligence in tough operational environments.
- Haivision unveils Falkon X2: Pushing the Boundaries of 5G Video Transmission for Live Broadcasting.
- Published its sixth annual Broadcast Transformation Report, highlighting the state of technology adoption in the broadcast industry.
- Haivision wins ISE Best in Show award for Haivision Command 360 video wall solutions for operations centers.
- Awarded the IBC Innovation Award for its live video contribution solution over private 5G networks at the summer games in Paris.
- Haivision joins consortium with Airbus Defense and Space to develop new technologies for rapid, secure, and reliable communications.
- Haivision MCS awarded US$61.2 million (CAD$82 million) production agreement by U.S. Navy for next-generation combat visualization and video distribution systems.
- Haivision collaborates with Shield AI to bring together full-motion video with AI object detection for defense and ISR applications.
- France Television provides exclusive coverage of the Paris 2024 Olympic surfing competition with Haivision's private 5G video transmission ecosystem.
"Approximately 78% of our operating expenses are denominated in Euros and US dollars, making this quarter particularly challenging. We have seen the Canadian dollar slump when the U.S. administration announced tariffs and then rally when there was a subsequent reprieve." said Dan Rabinowitz EVP and Chief Financial Officer. The result of the recent volatility, Haivision likely benefited by $2.1 million in incremental revenue during the quarter offset by an increase in operating expenses by $1.8 million." Added Mr. Rabinowitz.
Financial Results
Revenue for the three months ended April 30, 2025 was $34.2 million largely comparable to the prior year comparable period. Revenue for the six months ended April 30, 2025 was $62.5 million, a decrease of $6.3 million from the same prior year period. Sales accelerated in the second quarter and were able to overcome the impact of our transformation from "integrator" in the control room space and the resulting decrease in sales of third-party components and related professional services that are often a significant component of these solutions.
A related result was an improvement in resulting Gross Margins*. Gross Margin* for the three months and six months ended April 30, 2025 was 73.0% and 72.6%, respectively compared to 72.6% and 72.3% for the prior year comparable periods. Gross Margin* were positively impacted by our decision to transition away from offering lower-margined, third-party components,
Total expenses for the three months and six months ended April 30, 2025 were $28.2 million and $50.7 million, respectively representing increases of $5.5 million and $5.1 million when compared to from the prior year comparative periods. The year-over-year increases are largely related to legal settlement expense, interest and fees (including Haivision legal fees) amounting to $1.7 million (of which $1.5 million was realized in the second quarter) and the impact of the weak Canadian dollar which added $1.8 million to total expenses.
For the three months ended April 30, 2025, a modest improvement in gross margins resulted in an additional $0.5 million in gross profits when compared to the prior year comparative period but was not enough to overcome the increases in total expenses of $5.5 million resulting in a decline in Operating profit of $5.0 million. For the six months ended April 30, 2025, the $6.3 million decrease in revenue resulted in a decrease of gross profit* of $4.4 million. The decrease in gross profit* and the $5.1 million in total expenses resulted in a $9.5 million decrease in operating profit when compared to the prior year comparative period.
Similarly, Adjusted EBITDA* for the three months ended April 30, 2025 was $1.7 million, a decrease of $3.4 million when compared to the prior year comparative period. The $5.0 decline in year-over-year operating profit was offset by reclassification of the $1.5 million non-recurring expense related to the recent Vitec SA litigation. The Adjusted EBITDA margin* for the three months ended April 30, 2025 was 4.9% compared to 14.8% for the prior year comparative period. Adjusted EBITDA* for the six months ended April 30, 2025 was $2.1 million, a decrease of $8.2 million from the prior year comparative period. The $9.5 million decrease in operating profit was partially offset by the reclassification of the $1.7 million non-recurring expense related to the recent Vitec SA litigation. The Adjusted EBITDA margin* for the six months ended April 30, 2025 was 3.3% compared to 14.8% for the prior year comparative period.
Net loss for the three months ended April 30, 2025, was $2.4 million compared to net income of $0.9 million for the prior year comparative period. The $3.3 million decrease is related to the increase in total expenses but was partially offset by the $1.6 million decrease in income taxes. Net loss for the six months ended January 31, 2025 was $3.5 million compared to net income of $2.2 million in the prior year comparative period, The $5.7 million decrease in net income resulted from year-over-year decrease in first quarter revenues resulting in a $4.4 million decrease in Gross Profit*; the $5.1 million increase in total expenses; offset by the $3.6 million decrease in income taxes.
*Measures followed by the suffix "*" in this press release are non-IFRS measures. For the relevant definition, see "Non-IFRS Measures" below. As applicable, a reconciliation of this non-IFRS measure to the most directly comparable IFRS financial measure is included in the tables at the end of this press release and in the Company's management's discussion and analysis for the three months and six months ended April 30, 2025.
Conference Call Notification
Haivision will hold a conference call to discuss its fourth quarter and full year financial results on Wednesday, June 11, 2025 at 5:15 pm (ET). To register for the call, please use this link https://registrations.events/direct/Q4I334141. After registering, a confirmation will be sent through email, including dial in details and unique conference call codes for entry.
Financial Statements, Management's Discussion and Analysis and Additional Information
Haivision's consolidated financial statements for the second quarter ended April 30, 2025 (the "Q2 Financial Statements"), the management's discussion and analysis thereon and additional information relating to Haivision and its business can be found under Haivision's profile on SEDAR+ at www.sedarplus.ca. The financial information presented in this release was derived from the Q2 Financial Statements.
Forward-Looking Statements
This release includes "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of applicable securities laws, including, without limitation, statements regarding the Company's growth opportunities and its ability to execute on its growth strategy. In some cases, but not necessarily in all cases, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking statements. Forward-looking statements are not historical facts, nor guarantees or assurances of future performance but instead represent management's current beliefs, expectations, estimates and projections regarding future events and operating performance.
Forward-looking statements are necessarily based on opinions, assumptions and estimates that, while considered reasonable by Haivision as of the date of this release, are subject to inherent uncertainties, risks and changes in circumstances that may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ, possibly materially, from those indicated by the forward-looking statements include, but are not limited to, the risk factors identified under "Risk Factors" in the Company's latest annual information form, and in other periodic filings that the Company has made and may make in the future with the securities commissions or similar regulatory authorities in Canada, all of which are available under the Company's SEDAR+ profile at www.sedarplus.ca. These factors are not intended to represent a complete list of the factors that could affect Haivision. However, such risk factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. You should not place undue reliance on forward-looking statements, which speak only as of the date of this release. Haivision undertakes no obligation to publicly update any forward-looking statement, except as required by applicable securities laws.
Non-IFRS Measures
Haivision's consolidated financial statements for the second quarter ended April 30, 2025 are prepared in accordance with International Financial Reporting Standards - Accounting Standards ("IFRS® Accounting Standards"). As a compliment to results provided in accordance with IFRS Accounting Standards, this press release makes reference to certain (i) non-IFRS financial measures, including "EBITDA", and "Adjusted EBITDA", (ii) non-IFRS ratios including "Adjusted EBITDA Margin", and (iii) supplementary financial measures including "Gross Margins" (collectively "non-IFRS measures"). These non-IFRS measures are not recognized measures under IFRS Accounting Standards and do not have a standardized meaning prescribed by IFRS Accounting Standards and are therefore unlikely to be comparable to similar measures presented by other companies. Accordingly, these measures should not be considered in isolation or as a substitute for analysis of our financial information reported under IFRS Accounting Standards. Rather, these non-IFRS measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS Accounting Standards measures. We also believe that securities analysts, investors, and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Our management also uses non-IFRS measures to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation. For information on the most directly comparable financial measure disclosed in the primary financial statements of Haivision, composition of the non-IFRS measures, a description of how Haivision uses these measures and an explanation of how these measures provide useful information to investors, refer to the "Non-IFRS Measures" section of the Company's management's discussion and analysis for the three months and six months ended April 30, 2025, dated June 11, 2025, available on the Company's SEDAR+ profile at www.sedarplus.ca, which is incorporated by reference into this press release. As applicable, the reconciliations for each non-IFRS measure are outlined below. Non-IFRS measures should not be considered as alternatives to net income or comparable metrics determined in accordance with IFRS Accounting Standards as indicators of the Company's performance, liquidity, cash flow and profitability.
About Haivision
Haivision is a leading global provider of mission-critical, real-time video streaming and visual collaboration solutions. Our connected cloud and intelligent edge technologies enable organizations globally to engage audiences, enhance collaboration, and support decision making. We provide high quality, low latency, secure, and reliable live video at a global scale. Haivision open sourced its award-winning SRT low latency video streaming protocol and founded the SRT Alliance to support its adoption. Awarded four Emmys® for Technology and Engineering from the National Academy of Television Arts and Sciences, Haivision continues to fuel the future of IP video transformation. Founded in 2004, Haivision is headquartered in Montreal and Chicago with offices, sales, and support located throughout the Americas, Europe, and Asia. Learn more at haivision.com.
Thousands of Canadian dollars (except per share amounts) | |||||||||
Three months ended April 30, | Six months ended April 30, | ||||||||
2025 | 2024 | 2025 | 2024 | ||||||
($) | ($) | ($) | ($) | ||||||
Revenue | 34,290 | 34,169 | 62,451 | 68,748 | |||||
Cost of sales | 9,274 | 9,658 | 17,152 | 19,044 | |||||
Gross profit | 25,016 | 24,511 | 45,300 | 49,704 | |||||
Expenses | |||||||||
Sales and marketing | 8,192 | 6,978 | 14,708 | 13,633 | |||||
Operations and support | 4,842 | 3,968 | 9,473 | 7,965 | |||||
Research and development | 7,812 | 6,998 | 14,934 | 14,026 | |||||
General and administrative | 4,745 | 4,027 | 8,392 | 8,918 | |||||
Share-based payment | 1,044 | 695 | 1,428 | 1,042 | |||||
Legal settlement and related fees | 1,549 | - | 1,716 | - | |||||
28,184 | 22,666 | 50,651 | 45,584 | ||||||
Operating (loss) profit | (3,168) | 1,845 | (5,352) | 4,120 | |||||
Financial expenses | 171 | 244 | 339 | 543 | |||||
Income (loss) before income taxes | (3,339) | 1,601 | (5,690) | 3,577 | |||||
Income taxes | |||||||||
Current | (1,400) | 504 | (3,069) | 1,343 | |||||
Deferred | 452 | 165 | 848 | 25 | |||||
(948) | 669 | (2,221) | 1,368 | ||||||
Net (loss) income | (2,391) | 932 | (3,469) | 2,209 | |||||
Other comprehensive income (loss) | |||||||||
Foreign currency translation adjustment | (1,799) | 1,995 | 682 | (581) | |||||
Comprehensive income (loss) | (4,190) | 2,926 | (2,787) | 1,627 | |||||
Net income (loss) per share: | |||||||||
Basic | $(0.08) | $0.03 | $(0.12) | $0.08 | |||||
Diluted | $(0.08) | $0.03 | $(0.12) | $0.07 | |||||
Weighted average number of shares outstanding | |||||||||
Basic | 28,357,614 | 29,152,541 | 28,355,783 | 29,090,446 | |||||
Diluted | 28,357,614 | 30,311,651 | 28,355,783 | 30,130,367 | |||||
| Thousands of Canadian dollars | |||||
As at | |||||
April 30, | October 31, | ||||
$ | $ | ||||
Assets | |||||
Current assets | |||||
Cash | 11,829 | 16,471 | |||
Trade and other receivables | 25,616 | 23,843 | |||
Investment tax credits receivable | 1,936 | 1,941 | |||
Income tax receivable | 1,968 | - | |||
Inventories | 14,427 | 14,926 | |||
Prepaid expenses and deposits | 4,467 | 4,035 | |||
60,243 | 61,216 | ||||
Property and equipment | 4,205 | 4,241 | |||
Right-of-use assets | 5,014 | 4,669 | |||
Intangible assets | 8,799 | 11,241 | |||
Goodwill | 46,996 | 46,721 | |||
Non-refundable investment tax credits receivable | 8,036 | 6,523 | |||
Deferred income taxes | 7,584 | 6,704 | |||
80,634 | 80,099 | ||||
140,877 | 141,315 | ||||
Liabilities | |||||
Current liabilities | |||||
Line of credit | 7,295 | 2,227 | |||
Trade and other payables | 18,228 | 16,371 | |||
Income taxes payable | - | 625 | |||
Current portion of lease liabilities | 1,680 | 1,380 | |||
Current portion of term loans | 1,162 | 1,150 | |||
Deferred revenue | 11,962 | 14,245 | |||
40,327 | 35,998 | ||||
Lease liabilities | 4,025 | 4,047 | |||
Long term debt | 974 | 1,463 | |||
Deferred revenue | 3,464 | 3,011 | |||
48,790 | 44,520 | ||||
Equity | |||||
Share capital | 87,314 | 88,742 | |||
Deficit | (10,187) | (6,110) | |||
Share-based compensation and other reserves | 5,514 | 5,399 | |||
Foreign currency translation reserve | 9,446 | 8,764 | |||
92,087 | 96,796 | ||||
140,877 | 141,315 | ||||
Thousands of Canadian dollars | |||||||||||
Three months ended April 30, | Six months ended April 30, | ||||||||||
2025
| 2024
| 2025
| 2024
| ||||||||
($) | ($) | ($) | ($) | ||||||||
Net Income (loss) | (2,391) | 932 | (3,469) | 2,209 | |||||||
Income taxes (recovery) | (948) | 669 | (2,221) | 1,368 | |||||||
Income (loss) before income taxes | (3,339) | 1,601 | (5,690) | 3,577 | |||||||
Depreciation | 936 | 896 | 1,828 | 1,733 | |||||||
Amortization | 1,313 | 1,637 | 2,612 | 3,345 | |||||||
Financial expenses | 171 | 244 | 339 | 543 | |||||||
EBITDA(1) | (919) | 4,378 | (911) | 9,198 | |||||||
Share-based payments (LTIP) | 1,044 | 695 | 1,428 | 1,042 | |||||||
Legal settlement and related fees | 1,549 | - | 1,716 | - | |||||||
Adjusted EBITDA(1) | 1,675 | 5,073 | 2,233 | 10,240 | |||||||
Adjusted EBITDA Margin(1) | 4.9 % | 14.8 % | 3.6 % | 14.9 % | |||||||
___________ |
Note: |
(1) Non-IFRS measure. See "Non-IFRS Measures." |
SOURCE Haivision Systems Inc.
