ChyronHego Corp. (NASDAQ: CHYR) reported expenses for the first quarter of 2014 were USD8.3m, excluding the mark to market adjustment of USD2.6m, compared to USD6.5m in the first quarter of 2013.
Research and development expenses were USD2.2m, up 22 percent from USD1.8m in the first quarter 2013, primarily due to inclusion of USD0.8m of Hego R&D expenses, offset by cost savings from the 2013 workforce reduction.
Sales and marketing expenses were USD4.8m, up 66 percent from USD2.9m in Q1 2013, primarily due to the incremental costs from the Hego merger, including amortization of intangibles of USD0.3m.
General and administrative (GandA) expenses were USD1.3m, a decrease of USD0.6m from USD1.9m in the first quarter of 2013. The decrease was primarily due to inclusion in Q1 2013 of USD0.7m in merger transaction expenses and cost savings from the 2013 workforce reduction of USD0.1m, offset by the incremental GandA costs from the merger with Hego.
Net loss for the first quarter of 2014 was USD3.2m, or USD(0.10) per basic and diluted share, as compared to net loss of USD0.9m, or USD(0.05) per basic and diluted share, in the first quarter of 2013. Excluding the mark to market expense of USD2.6m from revaluation of the contingent earn-out shares related to the Hego merger, the company would have reported net loss of USD0.7m for the first quarter of 2014 compared to a net loss of USD0.9m for the first quarter of 2013.
Operating loss and net loss amounts shown herein, that are exclusive of the mark to market adjustment for the change in the fair value of the contingent consideration, are not US generally accepted accounting principles basis operating loss and net loss, and are reported herein solely to disclose the operating loss and net loss amounts that might have been reported had this charge not been recognized, as a basis for comparison between periods. Management believes that disclosing operating loss and net loss exclusive of this charge for the first quarter of 2014 provides an alternative basis on which to compare results between the periods and an understanding of earnings that would have resulted in the 2014 period had this charge not been incurred.
ChyronHego is a leader in broadcast graphics creation, playout and real-time data visualization with a wide range of products and services for live television, news and sports production. Joining forces in 2013, with over 80 years of combined industry expertise, Chyron and Hego Group offer award-winning solutions under the collective ChyronHego brand. Headquartered in Melville, N.Y., the company also has offices in the Czech Republic, Denmark, Finland, Germany, Mexico, Norway, Singapore, Slovak Republic, Sweden, and the United Kingdom. For more information on ChyronHego, visit www.chyronhego.com.