Vizrt Ltd. Reports 2011 and Q4 2011 Results with New Records
(Thomson Reuters ONE) -
New Records:
Full Year and Quarterly Revenues
Full Year and Quarterly EBIT
Strong Cash Generation
Bergen, Norway, February 17, 2012. Vizrt Ltd. (Oslo Main List: VIZ)
For 2011, the Company achieved record revenues of MUSD 125, a 19% increase
compared to 2010. Main growth driver was the BG product line. Geographically,
APAC led growth with a 38% increase compared to 2010. Vizrt posted an operating
income of MUSD 18.5 (15% margin) FY 2011 and MUSD 7.2 (21% margin) in Q4 2011.
Profitability improved significantly compared to 2010, including both gross
margin and EBIT margin. Strong cash generation of MUSD 21.9 in 2011, off-set by
the LiberoVision (LV) acquisition first closing pay-out of MUSD 6.3.
HIGHLIGHTS
* Revenues for FY2011 came in at MUSD 125.3, up 19% compared to FY 2010.
Revenues for Q4 2011 were MUSD 33.5, up 5% compared to the same period LY.
* Recurring operating income[1] was MUSD 18.5 (15%) FY2011and MUSD 7.2 (21%)
for Q4 2011, compared to MUSD 9.5 (9%) and MUSD 4.2 (13%) for the same
periods LY.
* EBITDA[2] reached MUSD 24.9 FY 2011and MUSD 8.9 for Q4 2011, corresponding
to a 20% and 27% margin respectively, compared to MUSD 16.1(15%) and 6.2
(19%) for the same periods LY.
* The Company posted a net profit of MUSD 16.0 (13%) FY2011 and MUSD 6.0 (18%)
for Q42011, compared to MUSD 4.5 (4%) and MUSD -0.2 (-1%) for the same
periods LY.
* Backlog to date is MUSD 46.4, up 15% compared to the same period LY.
* Cash generated from operating activities FY 2011 was MUSD 24.6, compared to
MUSD 12.9 FY 2010. Cash provided by operating activities in Q4 2011 was MUSD
12.4, compared to MUSD 8.3 for Q4 2010. As of December 31, 2011 the net cash
position was MUSD 73.1, up from September 30, 2011 by MUSD 10.7. Cash was
boosted by improved collection, with accounts receivable going down by MUSD
3.2, compared to Q3 2011 and DSO going down from 86 to 73.
* The board of directors is to resolve on dividend distribution in its next
meeting, scheduled to be held on March 15, 2012.
Martin Burkhalter, Vizrt CEO, commented on the results: "Having achieved record
revenues is of course very pleasing. This year saw investment decisions being
postponed till the very end of the year, when, in our opinion, companies felt
confident enough about market conditions to commit to the capital investments
they had wanted to make in 2011. This resulted in an even greater than normal
inflow of deals towards the very end of the quarter. This market dynamic of
postponed but eventually approved investments makes us believe that companies
did not expect a significant downturn in the economy in the short term, as was
the case in late 2008 and much of 2009, but at the same time that decision
makers were strongly guided by uncertainty and caution."
"During the quarter, we continued to improve the integration of the various
product lines, which not only has made our own operations more efficient, but
also enhanced the value proposition to our customers. The effect of these
efforts has been strong cross selling of our BG products to existing MAM, ONL
and LiberoVision customers."
"Decision making cycles for MAM and ONL transactions have lengthened, especially
for the larger projects. As a consequence, results from these product lines
were not as strong as those for BG. However, the launch of the latest version
of our Viz Media Engine product towards the end of 2011 has created significant
interest and we are seeing a growing deal volume coming through now."
"We were very satisfied with the development of our profitability, partially
explained by the strong performance of our BG business line, which carries a
higher margin than our other activities. Overall, our focus on increased
operational efficiency paid off with OPEX increasing at a much lower rate than
our revenue growth."
Results Overview
+---------------------------------+------+------+----------+------+-----------+
|In KUSD |Q42011|Q42010|Change in%|Q32011|Change in %|
+---------------------------------+------+------+----------+------+-----------+
|Revenue |33,483|31,771|5% |31,760|5% |
+---------------------------------+------+------+----------+------+-----------+
|Gross Profit |23,156|20,057|15% |21,080|10% |
+---------------------------------+------+------+----------+------+-----------+
|Gross Margin |69% |63% | |66% | |
+---------------------------------+------+------+----------+------+-----------+
|Recurring Operating Income |7,193 |4,221 |70% |3,792 |90% |
+---------------------------------+------+------+----------+------+-----------+
|Recurring Operating Income-Margin|21% |13% | |12% | |
+---------------------------------+------+------+----------+------+-----------+
|EBITDA |8,891 |6,157 |44% |5,628 |58% |
+---------------------------------+------+------+----------+------+-----------+
|EBITDA-Margin |27% |19% | |18% | |
+---------------------------------+------+------+----------+------+-----------+
|Net Profit (loss) |6,000 |-193 |N/A |3,320 |81% |
+---------------------------------+------+------+----------+------+-----------+
|Net Profit-Margin |18% |-1% | |10% | |
+---------------------------------+------+------+----------+------+-----------+
|EPS |0.09 |0.00 |N/A |0.05 |81% |
+---------------------------------+------+------+----------+------+-----------+
|Backlog |46,389|40,225|15% |48,673|-5% |
+---------------------------------+------+------+----------+------+-----------+
|Cash Position |73,062|57,473|27% |62,374|17% |
+---------------------------------+------+------+----------+------+-----------+
Vizrt Product Lines and Geographical Overview
Broadcast Graphics (BG)
BG revenues for FY 2011, with MUSD 96.2, accounted for 77% of total revenues, a
24% growth Y-o-Y and a 15% growth comparing Q4 2011 to Q4 2010. Compared to Q3
2011, BG revenues were up 4%.
Media Asset Management (MAM)
MAM revenues FY 2011 accounted for 15% of total revenues and came in at MUSD
19.2, a 2% decrease Y-o-Y and an 18% decrease comparing Q4 2011 to Q4 2010.
Compared to Q3 2011, MAM revenues were up by 11%.
Online & Mobile (ONL & MOB)
ONL & MOB revenues for FY 2011 accounted for 8% of total revenues with MUSD
9.9, compared to MUSD 8.5 for 2010, a 17% growth, of which organic growth
accounted for 3%. Comparing Q4 2011 to Q4 2010, revenues for this segment
decreased by 26%. Compared to Q3 2011 ONL & MOB revenues were up by 12%.
Our Mobile technology is basically a technical extension of our existing
business lines (MAM, Online, BG) and it is therefore natural to include Mobile
as a product into our existing business lines. Therefore, this is the last time
that Vizrt will report MOB separately.
Geographical Overview
All regions contributed to the improved performance in 2011, with the strongest
growth recorded in APAC, where revenues went up by 38% to MUSD 28.5, as compared
to MUSD 20.1 for 2010. Revenues in the EMEA region were up by 16%, from MUSD
59.5 to MUSD 69.0, and revenues in the AMERICAS were up 9%, from MUSD 25.4 to
MUSD 27.8.
FINANCIALS
Gross Profit and Gross Margin
The gross margin for 2011 was 66%, as compared to 62% for the same period LY.
The increase is mainly due to changes in the product mix sold and improved
margins for BG. The gross profit for 2011 was affected by a MUSD 2.8
amortization of intangible assets from acquisitions, compared to MUSD 3.2 for FY
2010. Adjusted for these amortization effects, the gross margin was 68%,
compared to 65% LY.
The gross margin for Q4 2011 was 69%, as compared to 63% for the same period
LY. The gross profit was affected by MUSD 0.7 in Q4 2011, compared to MUSD 0.8
in Q4 2010, in relation to the amortization of intangible assets resulting from
acquisitions. Adjusted for these amortization effects, the gross margin was 71%
compared to 66% for FY 2010.
Operating Expenses
Total operating expenses for FY 2011 were MUSD 64.4, up 7.5% compared to the
same period LY. The increase was mainly due to an increase in headcount in Vizrt
and staff additions due to the LiberoVision acquisition, which took place in
July 2011. Furthermore, the ongoing implementation of the regionalization
program, as well as a general salary increase implemented throughout the company
in 2011, all contributed to the cost increase. The increase in total operating
expenses was significantly below the revenue growth rate (7.5% versus 19%).
Currency Effects
Currency fluctuations in the second half of the year, especially the
appreciation of the USD, neutralized the effects as reported for the first half
of 2011. The net currency effect, both on OPEX and revenues, was near to
neutral and of no material influence when analyzing the full year results.
Operating expenses summary
+---------+--------+--------+--------+--------+--------+
| In KUSD | 2011 | 2010 | Q411 | Q410 | Q311 |
+---------+--------+--------+--------+--------+--------+
| R&D | 19,154 | 15,728 | 4,729 | 4,493 | 5,057 |
+---------+--------+--------+--------+--------+--------+
| S&M | 33,829 | 30,531 | 7,993 | 8,379 | 9,322 |
+---------+--------+--------+--------+--------+--------+
| G&A | 11,369 | 10,097 | 3,241 | 2,694 | 2,909 |
+---------+--------+--------+--------+--------+--------+
| OPEX | 64,352 | 56,356 | 15,963 | 15,836 | 17,288 |
+---------+--------+--------+--------+--------+--------+
Order backlog
The order backlog as of February 15, 2012, was MUSD46.4, up15%, compared to LY
MUSD 40.2, and down 5% compared to the Q3 2011 results release date. LV backlog
amounting to MUSD 2.9 is included under BG. BG backlog was at MUSD 24.8, MAM
backlog at MUSD 16.6, ONL backlog at MUSD 4.7 and Mobile streaming, related to
Adactus, at MUSD 0.3. For BG and MAM backlog was up 18% and 22%, respectively,
compared to the same period LY, whereas for ONL&MOB the backlog was down 12%,
comparing to the same period LY.
Balance Sheet, Cash Flow and Liquidity
Cash flow generation from operating activities in 2011 was MUSD 24.6, compared
to MUSD 12.9 in 2010. Net cash provided by operating activities in Q4 2011 was
MUSD 12.4, compared to MUSD 8.2 in Q4 2010. A net cash consideration of MUSD
6.3 was paid on July 1, 2011 for the first 60% of LiberoVision shares.
Vizrt has a strong financial position with no interest-bearing debt and a net
cash position of MUSD 73.1 as of December 31, 2011 (including MUSD 0.6
restricted cash), compared to MUSD 57.5 as of December 31, 2010 (including
MUSD 0.5 restricted cash). Furthermore, shareholders' equity as of December
31, 2011 was MUSD 124.8, which is equivalent to an equity ratio[3] of 77%.
Taxes
As communicated in 2011, Vizrt Ltd. is undergoing a tax assessment for the years
2006 through 2008. A tax assessment has been issued for the year 2006 which,
even if it becomes final following the on-going appeal process initiated by the
Company, will not have a material impact on the Company's consolidated financial
results. No tax assessment has so far been issued for the years 2007 and 2008.
Currently, the Company's management is unable to predict the outcome of the
deliberations with the tax authorities on its consolidated financial results.
Organization
As of December 31, 2011, the Company had 585 employees, compared to 543 as of
December 31, 2010. This increase is mainly due to increased staffing in low cost
countries, as well as an additional 16 employees resulting from the acquisition
of LiberoVision in Q3 2011.
Post Balance-Sheet Event
Subsequent to YE 2011 and in accordance with the terms of the SPA to acquire
LiberoVision AG, the Second Closing for the purchase of 20% of LiberoVision
shares was concluded and will be completed no later than March 31, 2012.
Following completion, Vizrt will hold 80% of the share capital of LiberoVision.
OUTLOOK
Martin Burkhalter, Vizrt CEO, stated, "Despite the strong Q4 performance, we
sense that the macro-economic environment continues to be characterized by
uncertainty. We are receiving some mixed signals from the market and concerns
related to public debt, uncertainties related to the EURO, and signs of lower
economic growth in the Eurozone countries and the U.S., might in the mid or
long-term have an adverse impact on market conditions. However, based on our
strong product offering, combined with certain large events such as the Olympic
Games and the European Football Championships, as well as the 2012 U.S.
Presidential elections, we reiterate our outlook for 2012 of an organic revenue
growth target of around 13%, with full year EBITDA improving towards our long
term target of 23%."
"For 2012 we will focus on organic growth through consolidation of past
acquisitions, further integration between product lines and our increased sales
capabilities in the regions. Due to the prevailing uncertainty, we will
continue to focus strongly on controlling OPEX to protect our profitability."
Analyst Conference
An Analyst Conference will be held at 09:30 a.m. (CET) at DnBNor Head Offices,
Stranden 21 in Oslo.
Management will furthermore discuss the FY 2011 results in a conference call at
1.30 p.m. (CET) Call details are as follows:
+47 24 159585 (Norway)
+44 203 1474861 (UK)
+49 69 247501893 (Germany)
A replay of the call will be available until February 24, 2011. Please use the
following dial-in-numbers:
+49 30 868757040 (Germany); +44 203 024 54 07 (UK), +1 408 9160685 (US)
passcode: 9418547#
--------------------------------------------------------------------------------
[1]' Excluding non cash goodwill impairments related to Escenic purchase
recorded in Q4 2010 in the amount of MUSD 3.5
[2]' EBITDA: Earnings before interest, tax, amortization and depreciation
[3]' Equity divided into Total liabilities and Equity
About Vizrt:
Vizrt provides real-time 3D graphics and asset management tools for the
broadcast industry - from award-winning animations & maps to online publishing
tools. Vizrt's products are used by the world's leading broadcasters and
publishing houses, including: CNN, CBS, Fox, the BBC, BSkyB, ITN, ZDF, Star TV,
Network 18, TV Today, CCTV, NHK, The Globe and Mail, Times Online, The
Telegraph, and Welt Online. Furthermore, many world-class production houses and
corporate institutions such as the Stock Exchanges in New York and London use
Vizrt systems.
Vizrt is a public company traded on the Oslo Main List: VIZ, ISIN: IL0010838154.
For further information please refer to www.vizrt.com
Investors and media contacts:
Martin Burkhalter
President & CEO
+41 22 365 75 01
mbu(at)vizrt.com
Ofra Brown
CFO
+47 5351 8040
ofra(at)vizrt.com
SCHWARZ Financial Communication
Frank Schwarz
+49 611 1745 398 11
schwarz(at)schwarzfinancial.com
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
Full Q4 Report Including Tables:
http://hugin.info/138784/R/1586835/497573.pdf
FY 2011 and Q4 Management Presentation:
http://hugin.info/138784/R/1586835/497576.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Vizrt Ltd. via Thomson Reuters ONE
[HUG#1586835]
Unternehmensinformation / Kurzprofil:
Datum: 17.02.2012 - 07:30 Uhr
Sprache: Deutsch
News-ID 115879
Anzahl Zeichen: 18443
contact information:
Town:
Bergen
Kategorie:
Business News
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