Chyron Reports Financial Results for the First Quarter 2009

MELVILLE, N.Y.--(Business Wire)--
Chyron (NASDAQ: CHYR), a leading provider of Graphics as a Service for On Air,
Online, Out of Home, and Mobile Applications, today announced its financial
results for the first quarter ended March 31, 2009.

Key Financial Highlights:

* Revenues were $6.3 million, down $2.0 million or 24% from the prior year`s
first quarter;
* Net loss was $0.9 million for first quarter of 2009 (after a $0.2 million
income tax benefit, net), as compared to net income of 0.3 million for the prior
year`s first quarter;
* Basic earnings per share (EPS) was a net loss of $0.06 for the first quarter
of 2009 as compared to net income per share of $0.02 for the first quarter of
2008;
* Adjusted EBITDA was a loss of $0.5 million for first quarter of 2009 as
compared to profit of $0.8 million for the first quarter of 2008.

For first quarter 2009, revenues were $6.3 million, a decrease of 24% from
revenues of $8.3 million in the first quarter of 2008. Gross profit margin
decreased to 67% for first quarter 2009 as compared to 71% for first quarter
2008 primarily due to an increase in inventory obsolescence reserves associated
with certain legacy products and an increase in warranty costs. First quarter
2009 operating expenses were $5.3 million, a $0.4 million or 7% decrease from
the first quarter of 2008. Selling, general and administrative expenses
decreased by $0.8 million to $3.4 million from $4.2 million in the first quarter
of 2008 due to reduced sales commissions on lower revenues and lower bonus
expense, consulting costs, share based compensation expense and travel costs.
Research and development expenses increased $0.3 million or 20% to $1.8 million
from $1.5 million in the first quarter of 2008 primarily due to increased
engineering efforts related to our Axis product line. Other income (expense),
net declined $0.1 million for the year-over-year quarter, primarily due to a $39
thousand foreign exchange loss incurred in the first quarter of 2009 as compared
to a $58 thousand foreign exchange gain in first quarter of 2008, due to the
decline in the exchange rates of the Euro and Pound Sterling in relation to the
U.S. Dollar. A net loss of $0.9 million resulted in the first quarter of 2009 as
compared to net income of $0.3 million for first quarter 2008. Included in first
quarter of 2009 net income was an income tax benefit, net of $0.2 million as a
result of the pre-tax loss of $1.1 million for the quarter. Adjusted EBITDA for
the first quarter 2009 was a loss of $0.5 million as compared to a profit of
$0.8 million for first quarter 2008. The Company defines Adjusted EBITDA as GAAP
net income (loss) plus net interest, income tax expense (benefit), depreciation,
amortization and non-cash share-based compensation expense. An explanation of
management's use of this measure of results and a reconciliation of Adjusted
EBITDA to the most directly comparable GAAP measure of net income is set forth
at the end of this press release.

Michael Wellesley-Wesley, Chyron President and CEO, commented, "Our first
quarter results were as expected and in line with our fourth quarter 2008
experience. They confirm my belief that, in the near term, the new sustainable
base level of demand for our broadcast graphics systems in this global recession
appears to be 20 -25% below 2008 levels. We have adjusted to this new reality
and view 2009 as an opportunity to better position Chyron for future growth. Our
AXIS On Demand hosted content creation services are generating widespread
interest and gaining real traction, as evidenced by our recent announcement that
Fox Television stations have entered into a multi-year agreement to utilize
AXIS. Our broadcast customers are looking for ways to move away from their high
fixed cost business model to exactly the kind of low, variable cost model that
we believe AXIS offers and the stunning ROI that AXIS can deliver. Our goal is
to capitalize and build upon our first mover advantage in 2009 to emerge as a
champion in 2010 and beyond."

Conference Call and Webcast: First Quarter Financial Results:

Chyron Corporation management will host a conference call on Tuesday, May 12,
2009, at 10:00 AM eastern time, to review the first quarter results.
Participants using the telephone should dial (888) 680-0878 (U.S. and Canada) or
(617) 213-4855 (International) and refer to passcode 40605885. Web participants
are encouraged to go to either www.chyron.com or www.earnings.com at least 15
minutes prior to the start of the call to register, download, and install any
necessary audio software. The replay numbers and passcode are (888) 286-8010
(U.S. and Canada) or (617) 801-6888 (International) and refer to passcode
50392099. The online archives will be available on both sites shortly after the
conclusion of the call. Each replay will continue for seven days, through May
19, 2009.

About Chyron

As the pioneer of Graphics as a Service for digital video media, Chyron
continues to define the world of digital and broadcast graphics with Web,
Mobile, HD, 3D and newsroom integration solutions. Winner of numerous awards,
including two Emmys, Chyron has proven itself as a leader in the industry with
sophisticated graphics offerings that include Online, Chyron's AXIS Graphics
online content creation software, HD/SD switchable on-air graphics systems, clip
servers, channel branding and telestration systems, graphic asset management and
XMP integration solutions, and the award-winning WAPSTR mobile phone
newsgathering application, as well as digital signage. For more information
about Chyron products and services please visit the Company's websites at
www.chyron.com, www.chytv.com and www.axisgraphics.tv (NASDAQ: CHYR).

Special Note Regarding Forward-looking Statements

This press release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995, including statements
relating to (i) the Company`s belief that, in the near term, demand for its
broadcast graphics systems appears to be 20-25% below 2008 levels; (ii) the
Company`s view that 2009 presents an opportunity to better position the Company
for future growth; (iii) increased interest in and traction for the Company`s
AXIS On Demand hosted content creation services; (iv) the low, variable cost
model that the Company believes AXIS offers and the ROI that AXIS can deliver;
and (v) the Company`s goal for 2009 to capitalize and build upon its first mover
advantage to emerge as a champion in 2010 and beyond. These forward-looking
statements are based on management's current expectations and are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those set forth in or implied by such forward-looking
statements. These risks and uncertainties include, but are not limited to:
current and future economic conditions that may adversely affect our business
and customers; our ability to retain our current senior management team and
continue to attract and retain qualified scientific, technical and business
personnel; dependence on the emerging digital market and the industry's
transition to digital television ("DTV") and high definition television
("HDTV"); consumer acceptance of, or resistance within the broadcast or cable
industry to implement, DTV and HDTV technology; our ability to integrate our
AXIS online graphics creation solution into our product offerings and to
generate profits from AXIS; our ability to generate sales and profits from our
workflow and asset management solutions and Mobile Suite products; rapid
technological changes; continued growth, use and improvement of the Internet;
new technologies that could render certain of our products to be obsolete;
product concentration in a mature market; competitors with significantly greater
financial resources; new product introductions by competitors; seasonality;
ability to maintain adequate levels of working capital; our ability to
successfully maintain the level of operating costs; expansion into new markets;
adverse effects on our results of operations if goodwill or other long-lived
assets and intangible assets become impaired; and, other factors discussed under
the heading "Risk Factors" contained in Item 1A in our Annual Report on Form
10-K for the year ended December 31, 2008, which has been filed with the
Securities and Exchange Commission, as well as any updates to those risk factors
filed from time to time. All information in this press release is as of the date
of the release, and we undertake no duty to update this information unless
required by law.

CHYRON CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In U.S. Dollar thousands, except per share amounts)

Three Months Ended
March 31,
2009 2008

Net sales $ 6,270 $ 8,304
Gross profit 4,220 5,860
Operating expenses:
Selling, general and administrative 3,454 4,170
Research and development 1,830 1,515
Total operating expenses 5,284 5,685
Operating (loss) income (1,064 ) 175
Interest and other income (expense), net (40 ) 80
(Loss) income before taxes (1,104 ) 255
Income tax benefit, net 226 -
Net (loss) income $ (878 ) $ 255

Net (loss) income per common share -
Basic $ (0.06 ) $ 0.02
Diluted $ (0.06 ) $ 0.02

Weighted average number of common and
common equivalent shares outstanding:
Basic 15,682 15,488
Diluted 15,682 16,597

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In U.S. Dollar thousands)

March 31, December 31,
2009 2008
Assets:
Cash and cash equivalents $ 5,290 $ 5,322
Accounts receivable, net 3,956 3,199
Inventories, net 2,557 2,853
Deferred taxes 2,737 2,669
Other current assets 800 923
Total current assets 15,340 14,966
Deferred taxes 17,167 17,001
Goodwill and intangible assets, net 3,052 3,086
Other non-current assets 1,321 1,360
Total assets $ 36,880 $ 36,413

Liabilities and shareholders' equity:
Current liabilities $ 5,321 $ 4,699
Non-current liabilities 2,639 2,380
Total liabilities 7,960 7,079

Shareholders' equity 28,920 29,334
Total liabilities and shareholders' equity $ 36,880 $ 36,413

The Company defines Adjusted EBITDA as GAAP net income (loss) plus net interest,
income tax expense (benefit), depreciation, amortization and non-cash
share-based compensation expense. These results are provided as a complement to
results provided in accordance with GAAP because management believes this
non-GAAP financial measure is a good indication of the Company's ability to
generate cash that is or will be used in the business. Adjusted EBITDA is not a
measurement of financial performance under GAAP and should not be considered a
substitute for net income as a measure of performance.

RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS) (Unaudited)
(In U.S. Dollar thousands)

Three Months Ended
March 31,
2009 2008

Net (loss) income $ (878 ) $ 255
Interest expense (income), net 5 (7 )
Income tax benefit (226 ) -
Depreciation and amortization 214 200
EBITDA $ (885 ) $ 448
Share-based compensation expense 425 320
Adjusted EBITDA $ (460 ) $ 768

KCSA Strategic Communications
Marybeth Csaby, 212-896-1236
mcsaby@kcsa.com
or
Chyron Corporation
Jerry Kieliszak, 631-845-2011
Senior Vice President and Chief Financial Officer

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