SALT LAKE CITY, Nov. 14, 2011 /PRNewswire/ -- Broadcast International (‘BCST.OB’) today announced a Q3 revenue increase of 21%, up from $1.9 million for the same quarter in 2010 to $2.3 million in 2011. Year-to-date revenues of $6.3 million were up 17% from the corresponding nine month period as last year. The higher revenues were attributable primarily to expanded digital signage installations made by the BI Networks Division for its largest customer.
Gross profits for Q3 of $759 thousand were up 21% from the same period last year. Year-to-date gross profits of $1.9 million were up 27 percent. The 33% gross profit margin for Q3 is unchanged from the corresponding period in 2010. Year-to-date gross profit margin of 30% is higher than the 28% reported in the first nine months of 2010.
Operating loss of $1.7 million was up $655K from than the equivalent period last year primarily because of a $347K ramp-up in sales and marketing expenses, with the balance of the increase attributed to contract labor, travel and in non-cash compensation for new hires. Year-to-date operating losses of $6.4 million were up $1.9 million from the previous year because of the aforementioned ramp-up of CodecSys sales and marketing costs as well as non-cash compensation to employees and directors.
Net profits for Q3 2011 reached $4.0 million compared to a net loss of $5.5 million for the same period last year. The $9.5 million improvement from Q3 2010 is primarily due to lower interest expense of $3.4 million as well as a $6.9 million valuation gain on the Company's derivatives. Year-to-date net profits were $3.7 million compared to a net loss of $11.6 million for the same period in 2010 due to lower interest expense of $6.6 million and a $12.0 million gain on the derivative valuation.
Rod Tiede, President/CEO of Broadcast International stated, "We are pleased to report a sustained increase in revenues and profitability from our BI Networks Division. The Company continues to position itself as the leading provider of video solutions for enterprise customers. For additional information about the progress of our CodecSys and BI Networks Divisions, I encourage our investors to view a special podcast that will be posted on our website (www.brin.com) on Thursday, November 17th at 9:00am MST."
About Broadcast International
Broadcast International is a leading provider of video-powered broadcast solutions, including IP, and digital satellite, Internet streaming and other types of wired/wireless network distribution. BI's patented CodecSys software is a breakthrough, multi-codec video compression technology that cuts video bandwidth requirements over satellite, cable, IP and wireless networks. By slashing bandwidth needs, CodecSys enables a new generation of rich-media applications and offers unprecedented price/ performance benefits for existing applications. Broadcast International is a public company (OTC Bulletin Board: BCST.OB- News) headquartered in Salt Lake City, UT.
All statements in this news release that are not based on historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control, that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth under the caption "Additional Factors That May Affect Our business" in the Company's most recent Form 10-K and 10-Q filings, and amendments thereto. In addition, we operate in a highly competitive and rapidly changing environment, and new risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. We disclaim any intention to, and undertake no obligation to, update or revise any forward-looking statement.
SOURCE Broadcast International