Record Revenues for Full Year and Quarter
(Thomson Reuters ONE) -
Strong Cash Generation
Vizrt Reports 2010 and Q4 2010 Results
Norway, February 17, 2011. Vizrt Ltd. (Oslo Main List: VIZ)
The Company recorded 23% growth in revenues Y-o-Y and 22% growth Q-o-Q.
Recurring Operating income of MUSD 9.5 (9% margin) for 2010 FY and MUSD 4.2
(13% margin) in Q4 2010. Strong cash generation of MUSD 12.2 in 2010.
Financial Highlights for the Fourth Quarter ended December 31, 2010:
* Revenues: MUSD 31.8, up 22% compared to MUSD 26.1 in Q4 2009. Compared to Q3
2010 revenues were up 23%.
* Recurring operating income: MUSD 4.2, up 89% compared to MUSD 2.2 in Q4
2009. Recurring operating margin was 13% compared to 9% in Q4 2009.
* EBITDA: MUSD 6.2, up 44% compared to 4.3 in Q4 2009. Recurring EBITDA margin
was 19% compared to 17% in Q4 2009.
* Cash generation of MUSD 8.5 in Q4 2010, offset by MUSD 1.5 investment in
Stergen in Q4 2010.
* Impairment of Goodwill: a non-cash impairment charge of MUSD 3.5 was
recorded as a separate item in the operating expenses in accordance to the
annual impairment analysis related to the Escenic (ESC) acquisition. No
further impairment charges were identified in connection with other former
acquisitions.
Financial Highlights for the Year ended December 31, 2010:
* Revenues: MUSD 105.6, up 23% compared to MUSD 85.6 in 2009.
* Recurring operating income: MUSD 9.5, up 799% compared to MUSD 1.1 in
2009. Recurring operating margin was 9% compared to 1% in 2009.
* EBITDA: MUSD 16.1, up 92% compared to 8.5 in 2009. Recurring EBITDA margin
was 15% compared to 10% in 2009.
* Cash generation of MUSD 12.2 in 2010 was offset by MUSD 4.7 used for the
acquisition of Adactus in Q3 2010 and the investment in Stergen in Q4 2010.
Business Highlights
* Backlog to date amounts to MUSD 40.2, up 8% compared to the same date LY.
* On October 26, 2010 the Company acquired 19.9% (on a fully diluted basis) of
the shares of Stergen Hi-Tech Ltd. in consideration of MUSD 1.9. Stergen is
a developer of 2D to stereoscopic 3D video conversion software.
Additionally, the parties have entered into a distribution agreement of
Stergen's products by Vizrt.
* On November 19, 2010, the company announced entering into a term sheet to
acquire LiberoVision AG, a Swiss company and a leader in the field of
virtual sports enhancements. The deal is expected to be finalized during Q1
2011.
Martin Burkhalter, Vizrt CEO, commented on the results, "We are obviously very
pleased being able to report record revenues for both the year and the quarter.
The positive trend we reported on throughout the year continued in the last
three months of the year, with our organization being able to capitalize on the
improved market conditions, the increased integration of our product lines and
the efforts we put into building up our commercial and delivery capabilities in
all geographical regions. The regionalization efforts clearly start to show
effect, though it is important to understand that our strong performance is very
much the result of the interplay between our focus on innovation, technology
integration, customer focus and commercial presence and activities.
"Improving gross margin remains a challenge, but this will continue to be a key
focus area going forward."
"The strong performance we posted for our BG and MAM product lines show how
relevant our offering is for our clients. Obviously, the growth in these areas
is strongly related to overall market conditions, but we sense that our
performance here is strengthened through our ongoing innovations as well as the
level of integration between product lines, initiatives that address both urgent
and strategic needs."
"Compared to BG and MAM, our ONL and Mobile lines have not performed as
strongly. The sectors these product lines are aimed at have either not yet
recovered fully, as is the case for the traditional print media, or are only at
the beginning of their cycle, as is the case for Mobile content distribution.
Revenues will continue to show volatility in these areas, though we have
witnessed signs of recovery, and confirmation that our integrated workflow focus
in this area is very relevant for high traffic and media rich online
publications."
Results Overview
In KUSD |Q4 2010|Q4 2009|Change in%|Q3 2010|Change in %
--------------------------------+-------+-------+----------+-------+-----------
Revenue | 31,771| 26,128| 22%| 25,889| 23%
--------------------------------+-------+-------+----------+-------+-----------
Gross Profit | 20,057| 15,365| 31%| 16,279| 23%
--------------------------------+-------+-------+----------+-------+-----------
Gross Margin | 63%| 59%| | 63%|
--------------------------------+-------+-------+----------+-------+-----------
EBITDA | 6,157| 4,334| 42%| 4,282| 44%
--------------------------------+-------+-------+----------+-------+-----------
EBITDA-Margin | 19%| 17%| | 16%|
--------------------------------+-------+-------+----------+-------+-----------
Recurring Operating Income | 4,221| 2,238| 89%| 2,696| 57%
--------------------------------+-------+-------+----------+-------+-----------
Recurring Operating Income-| 13%| 9%| | 10%|
Margin | | | | |
--------------------------------+-------+-------+----------+-------+-----------
Recurring Earnings Per Share | 0.05| 0.05| 0%| 0.06| -17%
--------------------------------+-------+-------+----------+-------+-----------
Backlog | 40,225| 37,346| 8%| 37,716| 7%
--------------------------------+-------+-------+----------+-------+-----------
Cash Position | 57,473| 50,010| 15%| 50,461| 14%
| | | | |
Vizrt Product Lines and Geographical Overview
Broadcast Graphics (BG)
BG revenues accounted for 73% of total revenues, or MUSD 77.4, a 27% growth Y-o-
Y and 21% Q-o-Q. A strong recovery in demand was witnessed for the Company's
core BG product line, in part due to structural changes that are continuing to
yield effect, with Vizrt's regionalization program further driving BG sales in
all markets.
Media Asset Management (MAM)
MAM continued to show strong growth. For 2010, MAM revenues came in at MUSD
19.7, a 27% growth Y-o-Y and 38% Q-o-Q. The main reasons for the growth were
the general improvement in market conditions and our enhanced capacity to
deliver projects. MAM is the second largest contributor to revenues with a
share in total revenues of 19% in 2010.
Online & Mobile (ONL & MOB)
2010 revenues were down 6% to MUSD 8.5, compared to MUSD 9.0 for 2009. However,
Q4 2010 revenues came in at MUSD 2.8, up 3% compared to Q4 2009. This includes
a positive effect of MUSD 0.8 due to the acquisition and consolidation of
Adactus from Q3 2010. The product line contributed 8% to total revenues in
2010. Due to the volume of ONL and MOB on a standalone basis, along with the
increasing number of deals that combine both ONL and MOB solutions, the Company
reports both as one combined product line.
As revenues for ONL & MOB are as yet relatively low, minor influences will
continue to contribute to disproportionate volatility. This volatility is
expected to reduce when markets recover more fully, with the associated expected
revenue growth in this business segment.
FINANCIALS
Gross Profit and Gross Margin
The gross margin for 2010 was 62% as compared to 59% for the same period LY.
This increase is mainly due to less HW in the product mix. The gross profit in
2010 was affected by a MUSD 3.2 amortization of intangible assets from
acquisitions, compared to MUSD 3.3 in 2009. Adjusted for these amortization
effects, the gross margin was 65%, compared to 63% LY.
Recurring Operating Expenses
Total recurring operating expenses for 2010 were MUSD 56.4, up 14% compared to
the same period LY. The increase is mostly due to the regionalization program
that the Company has been implementing since the beginning of 2010 and due to
the incentive plan that came into effect due to the strong performance in Q4
2010. The regionalization program involves the setting up of fully staffed
sales and delivery organizations in the regions that are capable of marketing,
selling and delivering of Vizrt's integrated workflow solutions. Developing and
building such an organization carries associated costs, but we believe in the
benefits of doing it, in order to continue to grow a sustainable and profitable
global business. Q410 recurring OPEX was up MUSD 2.3 (17%) compared to Q310,
which was mainly related to the costs of the abovementioned incentive plan for
Vizrt's employees.
Recurring Operating Expenses Summary
In KUSD | 2010 | 2009 | Q410 | Q409 | Q310
----------+--------+--------+--------+--------+--------
R&D | 15,728 | 13,591 | 4,493 | 3,161 | 3,690
----------+--------+--------+--------+--------+--------
S&M | 30,531 | 26,986 | 8,379 | 7,647 | 7,595
----------+--------+--------+--------+--------+--------
G&A | 10,097 | 8,806 | 2,964 | 2,319 | 2,298
----------+--------+--------+--------+--------+--------
OPEX | 56,356 | 49,383 | 15,836 | 13,127 | 13,583
| | | | |
Order backlog
The order backlog as of February 11, 2011 was MUSD 40.2, up 8%, compared to LY
MUSD 37.3, and up 7% as reported for the Q3 2010 results release date. BG
backlog was at MUSD 21.0, MAM backlog at MUSD 13.6 and Others backlog MUSD 5.6.
For BG and Others the backlog was up 21% and 5% respectively compared to the
same period LY, whereas for MAM the backlog was down 7%, comparing to the same
period LY.
Balance Sheet, Cash Flow and Liquidity
Cash flow generation from operating activities in 2010 was MUSD 12.9, compared
to MUSD 7.6 in 2009. Vizrt has a strong financial position with no interest-
bearing debt and a net cash position of MUSD 57.5 as of December 31, 2010,
compared to MUSD 50.0 as of December 31, 2009. In 2010, a MUSD 3.2 cash payment
was made related to the acquisition of Adactus, and a MUSD 1.5 cash investment
was made in Stergen. Shareholders' equity as of December 31, 2010 stood at MUSD
109.9, which is equivalent to an equity ratio of 77%.
Organization
As of December 31, 2010, the Company had 543 employees, compared to 491 as of
December 31, 2009. This increase is mainly due to increased staffing in low cost
countries related to the regionalization program of the company and due to the
additional employees of Adactus AS.
OUTLOOK
Martin Burkhalter, CEO of Vizrt, stated: "2010 has been a year of delivering on
our strategy. We weathered the downturn towards the end of the last decade
better than most competitors. We have continued to invest in our product
development; improving existing technology, integration between product lines,
as well as developing and acquiring new technologies."
"We obviously will not rest on our achievements, but continue to develop both
our technology and our organization. What 2010 has shown is that our technology
strategy of multiple product lines with a high level of integration between the
different lines has resulted in an offering that is very relevant for our
clients. Combined with our commercial strategy this has led to substantial
growth and record revenues.
Growth rates in the ONL & Mobile segment have picked up during the year and we
are seeing some signs of a more sustained recovery. These are new markets that
we offer new products for. We can help clients address technical challenges and
open up economic growth areas through increasing their market reach through the
use of technology. We saw a similar process for MAM, where we identified both
a need for new products and the economic and commercial sense of integrating
these with our existing product lines. The results of this are now becoming
apparent with our MAM revenues growing strongly. We believe that the logic of
efficient workflow synergies is the same in the ONL & Mobile segment."
"Furthermore, we obviously are looking to finalize the acquisition of
LiberoVision as this will further strengthen our highly competitive BG offer.
"
"As in 2010, we will continue to focus on improving our margins and operational
efficiencies. The improvements we have seen in 2010 are very encouraging and a
validation of our efforts in this area."
Investors & Analysts Presentation and Conference Call
Vizrt will hold a Presentation at the offices of DnB Nor in Oslo today, February
17, 2011 at 09:30 a.m. (CET). All interested parties are invited to follow the
presentation, please use one of the following dial-in-numbers: +47 24 159 585
(Norway), +49 69 247 501 891 (Germany), +44 203 147 48 61 (UK),
+1 212 4 440 297 (US) and login to follow the presentation
underwww.meetyoo.de/loginseiten/easyweb.html password: VizRTGuest.
The Q1 2011 results will be released on May 19, 2011.
Investors and media contacts:
Martin Burkhalter
CEO
+41 22 365 7501
mburkhalter(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.
Q4 Management Presentation:
http://hugin.info/138784/R/1489819/425400.pdf
Full Press Release incl Tables as PDF:
http://hugin.info/138784/R/1489819/425399.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#1489819]
Unternehmensinformation / Kurzprofil:
Datum: 17.02.2011 - 07:01 Uhr
Sprache: Deutsch
News-ID 51597
Anzahl Zeichen: 16125
contact information:
Town:
Bergen
Kategorie:
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