NDS Posts Strong Results, Acquires Internet-Video Firm
by Glen Dickson -- Broadcasting & Cable, 8/7/2007 8:44:00 AM
Conditional-access and interactive-TV software provider NDS posted increased revenues and operating income for its 2007 fiscal year, which ended June 30, and announced an $11.3 million deal to acquire CastUp, an Israeli firm that specializes in Internet video delivery.
Revenues for London-based NDS were $709.5 million, an increase of 18% compared to the previous fiscal year, which the company mainly attributed to increased shipments of conditional-access “smart cards” to new customers in Europe, China and India and an increased number of set-tops using NDS’ digital-video-recorder client software.
NDS’ operating income was $160.4 million, or 22.6% of revenue, for the fiscal year ended June 30, 2007, compared with $130.7 million, or 21.7% of revenue, for the prior fiscal year. Net income for the fiscal year ended June 30, 2007, was $135.7 million, or $2.37 per share ($2.33 per share on a diluted basis), compared with $101 million, or $1.80 per share ($1.74 on a diluted basis).
“We are pleased with our outstanding security record and with the adoption of our new technologies by our current customers, the most prominent being our DVR technology, now being shipped in 14 accounts across the world, with the fiscal-2007 number close to double the fiscal-2006 number,” said Dr. Abe Peled, chairman and CEO of NDS, in a statement. “We are also gratified to see our investments in winning new platforms in Eastern Europe, China and India starting to translate into significant revenues and subscriber additions.”
NDS is buying CastUp for $11.3 million in cash, plus additional payments to employees and senior management, in order to broaden its portfolio in online-video delivery. Completion is expected to occur during the first financial quarter of 2008.
A particular focus of the deal is using CastUp's rich-media technology to help develop new enhanced services and applications for broadband-enabled set-top boxes. CastUp will continue to operate as a separate unit within NDS under the leadership of the current management team.
"We are very excited about the possibilities for new and comprehensive solutions for the delivery, management, and control of online-media assets,” Peled said in a statement. “We believe that NDS' market-leading experience in securely delivering digital content and our global presence will combine with CastUp's proven technology to allow us to continue to enhance the businesses of our media and entertainment customers."
