Internet TV products maker Espial Inc. saw second-quarter revenues fall year-over-year, continuing a declining streak that has gone on since it first went public last year, but losses tightened up compared to the same period a year earlier.

The Ottawa-based company said revenues fell to $1.8 million from $2 million, as two out of its three main divisions posted lower earnings. Software licence and royalty revenues decreased by 12.7 per cent to $1.2 million, while maintenance and support revenues fell by 16.9 per cent to $343,129. Only the professional services division saw an increase in top-line earnings of 26.6 per cent, to $240,702.

However, despite the evidence that industry has been slow to pick up on the company's technology, Espial CEO Jaison Dolvane remained positive on the company's prospects, especially considering its recent $5.9-million acquisition of California rival Kasenna Inc.

"The acquisition of Kasenna positions us as a leading supplier of TV software to the telco, cable and hospitality industries," Mr. Dolvane said in a statement.

"During the quarter we solidified our position in the industry with the Kasenna acquisition and significantly broadened our customer base. We also made strong progress in developing our pipeline directly and via channels. Through these, we will continue to strengthen the foundation of our business to leverage future industry growth."

The company also noted that second-quarter losses narrowed to $1.4 million or 15 cents per share from $4.8 million or $1.79 per share. This was mainly due to a halving of operating expenses during the period, to $2.7 million from $5.4 million.

Mr. Dolvane added that the company's main goals for the rest of the year include two new major customers and deploying its key customers for the Evo TV Service Platform, along with successfully integrating Kasenna operations.