February 10, 2019
Dear Piksel Shareholders:
Piksel has a rich history of innovation in the Media and Broadcast (M&B) world. Piksel also continues to innovate in other sectors through our Industry Solutions (IS) group that participates in other industries such as healthcare, retail, and transportation. During 2017, we reorganized our IS business and brought additional focus to those parts of the company. Having completed this reorganization in the third quarter of 2017, Piksel’s 2018 was focused on implementing and proving the strategy that was deployed in the prior year.
In the M&B business in 2018, we were focused on our Tier 1 accounts and we achieved our revenue targets with those customers. Our M&B business is underpinned by the Piksel Palette which we believe is industry leading in its architecture and aspiration. The Palette continues to impress existing and new customers with its flexibility and the pace of innovation. While the focus for the Palette has been on metadata management and enrichment, we have also added a number of machine-learning based capabilities that we believe will drive our sales pipeline in the coming quarters. Our market focus will be on the telco and broadcast segments and converting opportunities into revenue is the top objective for our M&B team.
Operationally, we continue to strengthen and grow our facility in Malaga, which now accommodates more than 30% of the M&B operation and provides us with the agility and creativity that is critical to stay ahead of the curve. In parallel, our team in Milan spearheaded and delivered on the VCMS2 program. VCMS has long been a trademark product for Piksel with many Tier 1 customers such as Sky, Mediaset and others. Our next generation version, named VCMS2, offers an improved user experience and many new functionalities. The first release was delivered and successfully demonstrated to our key customers in September of last year.
In IS, the business is organized into 6 industry specific verticals that are responsible for the public sector (Brainpower), telcos & utilities (Digital Sense), healthcare (Carelink), transportation (Voyage), retail (The Retail Team) and start-up businesses (the Foundry). IS had a strong year in 2018, exceeding its revenue forecast. We believe these results demonstrate our customers’ continued committement to Piksel and they are a testament to our employees ability to deliver successfully.
For 2019, we hope to build on the progress that was made in 2018. In M&B, our efforts are focused on delivering great quality and innovation both on time and on budget. Most importantly, we hope to see success in converting our sales pipeline and announcing new Tier 1 customers adopting the Piksel Palette. While sales cycles for large organizations can be unpredictible, we believe that Piksel’s technology is ideally suited for this market segment and compares favorably to the competition.
Our Industry Solutions business units have worked hard to develop a marketing strategy that includes branded websites with deep value propositions that we believe resonate with existing and target customers. In the coming quarters, we believe we are well positioned to move our business towards higher margin, value-add engagements.
We look forward to working hard in 2019 to continue to innovate, grow the business, and exceed our objecitves.