Ballantyne Strong, Inc. (NYSE MKT: BTN):
(Investor Relations section)
Strong, Inc. (NYSE MKT: BTN), a diversified provider of digital
technology services, products and solutions, today reported financial
results for the first quarter ended March 31, 2014.
Net revenues were $22.0 million in the first quarter of 2014, compared
with $27.6 million in the same period of the prior year. Net loss
totaled $0.6 million, or ($0.04) per share, in the first quarter of
2014, compared with net income of $0.6 million, or $0.04 per diluted
share, in the same period of the prior year.
Gary L. Cavey, President and CEO of Ballantyne Strong, commented,
"Although total revenues were impacted by seasonal weakness in the first
quarter, we are very pleased with the improvement we are seeing in gross
margin as a result of the growth in our Managed Services segment. For
the first quarter of 2014, Managed Services increased to 38% of our
total revenue, up from 9% in the same period of the prior year. This
helped drive a nearly five percentage point improvement in our gross
margin to 19.1%.
"We continue to introduce new products that will drive organic revenue
growth. We recently introduced our Integrated
Cyber Screens, a new line of smaller motorized screens that will
enable us to offer our world-class big screen quality to the
professional audiovisual market for the first time. The Integrated Cyber
series is designed for use in smaller venues such as conference rooms,
media rooms, museums, schools and worship facilities. This new product
line will open up an entirely new market for us that we believe can help
drive continued growth in our screen business in the years ahead," said
Q1 2014 Financial Summary
Managed Services revenues were $8.4 million in the first quarter of
2014, compared with $2.5 million in the same period of the prior year.
The increase is attributable to the acquisition of Convergent Media
Systems Integration revenues were $14.0 million in the first quarter of
2014, compared with $25.5 million in the same period of the prior year.
The decline is primarily attributable to the continued softening in
demand as the cinema industry's shift to a digital equipment platform.
Consolidated gross profit was $4.2 million in the first quarter of 2014,
compared with $3.9 million in the same quarter of the prior year. Gross
margin was 19.1% in the first quarter of 2014, compared with 14.2% in
the same quarter of the prior year. The improvement in gross margin was
primarily attributable to a higher contribution of Managed Services
revenue within the overall sales mix.
Selling, general and administrative expenses (SG&A) were $5.4 million in
the first quarter of 2014, compared with $3.4 million in the same
quarter of the prior year. The increase in SG&A was attributable to the
addition of Convergent's operations.
Balance Sheet and Cash Flow Update
Ballantyne's cash and cash equivalents balance at March 31, 2014 was
$25.5 million, a decrease from $28.8 million at the end of the prior
quarter. The decrease in cash and cash equivalents balance was primarily
attributable to a decrease in accounts payable.
About Ballantyne Strong, Inc. (www.strong-world.com)
Ballantyne Strong designs, integrates, and installs technology solutions
for a broad range of applications; develops and delivers out-of-home
messaging, advertising and communications; manufactures projection
screens and lighting products; and provides managed services including
monitoring of networked equipment. The Company focuses on serving the
retail, financial, government and cinema markets.
Except for the historical information in this press release, it includes
forward-looking statements that involve risks and uncertainties,
including but not limited to, quarterly fluctuations in results;
customer demand for the Company's products; the development of new
technology for alternate means of motion picture presentation; domestic
and international economic conditions; the management of growth; and
other risks detailed from time to time in the Company's Securities and
Exchange Commission filings. Actual results may differ materially from
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