Belden brand Grass Valley has reported the largest order in its history. The order, which was received in April, is in excess of $20 million. It will ship over the next two to three years. The company also declared that it has shipped seven IP systems during Q1 2016.
Beginning with Q1 2016, Belden has moved its audio-video cable and connector business out of the Broadcast reporting unit and into the Enterprise Connectivity reporting segment. The reporting change provides improved visibility into Belden’s broadcast revenues.
Broadcast Solutions revenue for the first quarter 2016 was $171.3 million, a decrease of 2.9% over the year prior quarter, and a 15.1% decline against the preceding quarter, Q4 2015.
For the quarter, Belden recognised a $4.3 million charge in its Broadcast Solution division for severance, restructuring, and acquisition integration costs.
Commenting on the recent financial results at Grass Valley, Belden CEO John Stroup, said that the company had made progress on the IP products side although it was a small percentage of the business.
“The Grass Valley business on a year-over-year basis, revenues were down. We expected that. That was sort of the last quarter of a difficult comparison. As you recall, last year, we began to see softness in order rates in Q2 and revenue in Q2.
“On a year-over-year basis, I thought the team did a nice job on productivity improvement. On a year-over-year basis within the segment, productivity was about $7 million.” said Stroup.
Stroup elaborated on the 2016 expectations for Grass Valley stating: “…I would say that our guidance right now on the full year implies modest growth in Grass Valley on a year-over-year basis. So, we are not incorporating a strong rebound in the Grass Valley business in 2016 to hit the numbers [management guidance for overall business] that we’ve given everybody today.”