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ChyronHego posts 15 percent revenue gain, sees opportunity in sports data

Johan Apel, chief executive of ChyronHego Corp., of

Johan Apel, chief executive of ChyronHego Corp., of Melville. Credit: ChyronHego Corp.

Broadcast graphics company ChyronHego Corp. Monday posted 15 percent revenue growth in the third quarter, but a wider net loss due to a merger-related stock payout.

Revenue in the quarter, the first in which year-over-year comparisons reflect the merger of Melville-based Chyron and Stockholm, Sweden-based Hego, increased to $16 million from $14 million in the year-ago quarter.

The company posted a net loss of $2.7 million, or 7 cents per diluted share, versus a net loss of $1.1 million, or 4 cents per diluted share in the 2013 period. CEO Johan Apel attributed the bigger loss to a $3.8 million stock payout from the combined company to former Hego shareholders and $900,000 in severance costs.

Excluding those items, the company would have posted net income of $1.2 million for the third quarter.

Shares of ChyronHego fell 7.7 percent to close at $2.65 Monday in trading on the Nasdaq Stock Market.

In a conference call, Apel said the North American broadcast graphics business is flat, but that the sports data business offers strong opportunities for expansion and that the company is in talks with leagues in various sports around the world.

Apel also said he expects to pursue merger and acquisition targets.

"We're committed to growth and some part of that growth will come from M&A activity," he said.

ChyronHego completed its cash and stock-for-stock merger with Hego in May 2013.

In July, the company closed on the acquisitions of Norwegian-based companies ZXY Sport Tracking AS and WeatherOne AS.

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