Haivision Systems Inc., a leading global provider of mission critical, real-time video networking and visual collaboration solutions, has officially announced its results for the third quarter ended July 31, 2024. Talk about some highlights for the company from this period, they begin from joining consortium with Airbus Defense and Space to develop new technologies for rapid, secure, and reliable communications. Next up, we ought to mention how Haivision was bestowed with a production agreement worth $61.2 million (CAD$82 million) by U.S. Navy for next-generation combat visualization and video distribution systems. Moving on, Haivision would also go onto work alongside Shield AI to conceive full-motion video with AI object detection for defense and ISR applications. Another detail we have to acknowledge here is rooted in France Television’s decision to provide exclusive coverage of the Paris 2024 Olympic surfing competition with Haivision’s private 5G video transmission ecosystem. Markedly enough, during this period, the company also celebrated its 20-years anniversary as a leader and innovator in mission critical live video, and as it did that, Haivision would further unveil Hub 360, which happens to be a cloud-based master control solution that streamlines live production workflows. Then, there was the publishing of its fifth annual Broadcast Transformation Report that highlighted the state of technology adoption in today’s broadcast industry.
Beyond that, Haivision was awarded “Single/Dual-Stream Encoding Hardware” and “Best On-Prem Encoding/ Transcoding Solution” for the Makito X4 by Streaming Media Readers’ Choice Awards. The company also used this phase to join the Panasonic Partner Alliance for live video production workflows with Kairos. Not just that, it also joined the Sony Cloud Production Platform for low latency live video in the cloud, while simultaneously linking up with Grabyo, a London-based live cloud production platform. Rounding up highlights is Haivision’s strategic partnerships with CP Communications, Flypack, RF Wireless Systems, and Vidovation to extend mobile video transmitters rental services throughout North America.
“Haivision MCS’s recent award of a C$82M production agreement by the U.S. Navy, the Airbus Defense development partnership, and our investment in AI development demonstrate our ability to deliver advanced technology solutions for our key markets,” said Dan Rabinowitz, Chief Financial Officer and EVP of Operations at Haivision. “These are but a few examples of growth opportunities for the Company. It has clearly been a busy year for Haivision.”
As for Haivision’s financial results from the same period, its revenue for the three months and nine months ended July 31, 2024 was $30.6 million, marking a modest decrease when compared to the prior year comparative period. The cause behind that has been reported to be delays in the approval of a U.S Federal spending bill. This, in turn, would put off certain procurement process, such as Haivision’s transition from the integrator model in the control room space which offered lower-margined, third-party components. The delay also affected the company’s long-term rental program, which is designed a recurring revenue model and enhanced margins across its transmitter business. Despite the dip in revenue, though, Haivision announced a gross margin of 75% for the given period, a number besting the 69.1% achieved during the previous year. This it was able to realize on the back of its exit from the managed services business. Haivision’s gross margin was also aided by a decrease in the incremental costs of components procured during worldwide component shortage, and supply chain improvements.
To further bolster its bottom line, the company’s overall expenses also saw a decrease of around $3.8 billion, setting at $21.9 million for the three months in question. With better gross margin and lower expenses, Haivision would further see an uptick in operating profits, achieving an improvement worth $1.6 million.
“As we get closer to the end of our Fiscal 2024, I’m proud to say that we have completed our 2-year strategic plan for major EBITDA and profitability transformation,” said Mirko Wicha, Chairman and CEO of Haivision. “Successfully transitioning out of low margin businesses, our focus over the next two years will be to return Haivision to organic, double-digit revenue growth.”
