Envivio shares surged more than 32% in after-hours trading Thursday after the multiscreen video processing and software firm posted fourth quarter revenue growth paired with narrower losses.
Envivio swung to a fourth quarter GAAP net loss of $1.6 million (6 cents per share), versus a loss of $5.4 million (20 cents per share) in the year-ago period. Revenues were $12.7 million, up from $9 million.
"We are encouraged by our results, and by the positive business environment as we head into fiscal 2016,” Julien Signès, founder and CEO of Envivio, said in a statement. “While we have been impacted by the consolidation in the market, we are starting to see results from the increased adoption of our video processing software solutions in our customer base.”
Regarding Envivio’s top-line growth in Q4, he said three U.S. service providers contributed “significant revenue from incremental purchases,” adding that the company also received an order from an unidentified tier 1 customer for key expansions, products and services. Comcast and Time Warner Cable, which are in the process of merging, have been among the Envivio’s historic 10%-or-greater customers. Among other recent wins, Bouyges Telecom of France picked the company for multiple services, while Taiwan’s Chunghwa tapped it for its 4K trial using the bandwidth-saving HEVC codec.
"Over the last quarter we have taken a number of initiatives to reduce our expenses and are pleased to report a reduction in our losses as we drive towards profitability,” Signès added.
Envivio, which recently appointed former Time Warner Cable CTO Mike Lajoie to its board, ended Q4 with $37.8 million in cash and cash equivalents, up from $47.9 million at the end of the third quarter.
Envivio’s fourth quarter results represented an upswing in the company’s yo-yo-like financial results. Its Q3 revenues dipped sharply and losses widened as the company dealt tough economic conditions in Europe, customer consolidation in the U.S., and cautious spending on Ultra HD/4K transitions.
Envivio shares closed at $1.54 each on Thursday, up 14 cents, or 10%. They were up 32.47% (50 cents) to $2.04 each in after-hours trading.
