The roller-coaster ride for Envivio continued Friday as shares in the video processing and software specialist plunged more than 17% the day after it posted weak first quarter results.
First quarter revenues reached $8.4 million, up 13% versus a year ago, but down 33% versus the previous quarter amid a “typical seasonal decline in our business,” company president and CEO Julien Signès said on yesterday’s earnings call.
Envivio swung to a first quarter GAAP net loss of $4.5 million (17 cents per share), versus a loss of $4.7 million (18 cents per share) in the year-ago quarter.
Signès said lower spending in the first quarter was paired with delayed orders from some of Envivio’s North American service provider customers “who are undergoing reorganization and consolidation,” a seeming reference to the proposed Comcast-Time Warner Cable merger.
Signès said Comcast and another existing tier 1 U.S. cable operator (TWC is another of Envivo’s known domestic MSO customers) contributed 29% of revenue during the quarter. On the positive note, he said is “encouraged by our level of engagement with new potential Tier 1 customers as a result of our ongoing investments and focus on our North American service provider sales.”
Signes also expressed confidence that some revenues from delayed orders will close in future quarters, noting that some had already closed during the second quarter.
To amplify its growth prospects in the Americas, Envivio announced this week it is opening a new office in Denver and expanding its customer support organization. The Denver office will also serve as the headquarters for Envivio customer support for the Americas, and provide sales and professional services for customers in the region.
Envivio said it notched a virtualized software deployment of 10,000 live channels with a major U.S. MSO, and cited its recent win to enable French broadcaster TDF to delver live coverage of this year’s French Open tennis tournament in 4K using the HEVC (H.265) compression format.
But first quarter results overshadowed those bright spots, as Envivio shares were down 46 cents (17.56%) to $2.16 each in afternoon trading Friday.
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