TORONTO – V-Chip patent holder and cable industry supplier Tri-Vision International reported higher costs and lower second quarter profit last week.
Revenue in the quarter was $1.6 million, down from $2.1 million as compared to Q2 last year. Gross profit for the second quarter of fiscal ’07 was $189,205, well off the $1.2 million in Q2 ’06. The determining factor is a growing cost of sales, a number which stood at $1.4 million over the three month period, as compared to $891,000 during last year’s quarter.
Net loss was $1 million, as compared to net income of $14,260 in Q2 ’06.
"Despite results at the lower end of our expectations during the past six months, the company has focused on the continuing development of the Think Broadband business, and the important U.S. V-chip licensing campaign and I am satisfied by the progress made on both of these fronts," said CEO Najmul Siddiqui, in a press release. "Our forecast for the remainder of the fiscal year is for increased revenues and improved margins over the first half of the year."
The company created the V-Chip which must be installed in TVs sold in the U.S. and new division Think Broadband is a supplier to the cable and telecom industry.
"V-chip royalties were negatively impacted by a combination of factors during the traditionally low volume April to June time period reflected in this quarter. These factors included an oversupply of existing LCD product and difficulty by manufacturers in meeting compliance deadlines in the quarter following the FCC mandate taking effect. Additionally, the digital tuner mandate for televisions under 25 inches, which represents a substantial part of the existing market, does not take effect until March 2007. Management contends that signing 100% of the US market is a reasonable and realistic goal," says the press release.
Cable equipment revenues were up by $700,000 for the second quarter over the previous year and up 21% for the six-month period of this year. "This marks the turnaround for the company in the area of cable sales directly contributable to Think Broadband Solutions’ business success," added Siddiqui. "Think Broadband sold its all-digital DVB Standard Cable Platform to a regional cable operator — Nor-Del Cablevision Limited."
