Vizrt Reports Q1 2011 Results
(Thomson Reuters ONE) -
Bergen, Norway, May 19, 2011. Vizrt Ltd. (Oslo Main List: VIZ)
Revenues of MUSD 28.0, up 18% in Q1 2011 as compared to Q1 2010. Having
recorded the highest ever Q1 and the second highest quarterly revenues ever, is
a strong indication of the Company's leading position in the media industry. It
is also a clear validation of Vizrt's strategy to offer integrated solutions,
combining all product lines to address broadcasters' needs.
HIGHLIGHTS
* Revenues: MUSD 28.0, up 18% compared to MUSD 23.7 in Q1 2010.
* EBIT: MUSD 2.4 corresponding to an 8% margin, up significantly compared to
MUSD 0.2 (1%) in Q1 2010.
* EBITDA: MUSD 4.0 corresponding to a 14% margin, up 124% compared to MUSD
1.8 (7%) in Q1 2010.
* Net profit: MUSD 2.1 (8%) compared to a net loss of MUSD -0.4 in Q1 2010.
* Cash generation of MUSD 2.5 in Q1 2011.
* Backlog to date amounts to MUSD 40.0, up 11% compared to the same period
LY.
* On May 9(th) the company announced the signing of a definitive Share
purchase agreement for the acquisition of LiberoVision AG. Closing of the
transaction will take place one month following signing.
Martin Burkhalter, Vizrt CEO, commented on the results, "The past quarter has
seen a continuing line in how the market responds to our strategic direction of
offering integrated solutions, expanding operational capabilities in the regions
and providing innovative technology addressing both current and future needs and
economic realities. As in previous quarters, we have achieved substantial
growth, and were able to post a record level for Q1 revenues, traditionally a
weaker quarter for the entire sector.
"It is further more pleasing that all the regions and all three product lines
contributed to the growth. This past quarter, the strongest growth rate in
product terms was from our ONL & MOB business, which was in part due to the
acquisition and consolidation of Adactus with Mobile contributing MUSD 0.4.
Geographically the Americas posted the strongest growth rate, which was in line
with expectations as this is the area where, outside of Europe, we are furthest
with the implementation of our regionalization program."
Results Overview
+---------------------------------+-------+-------+------+-------+------+
|In KUSD |Q1 2011|Q1 2010|Change|Q4 2010|Change|
+---------------------------------+-------+-------+------+-------+------+
|Revenue | 28,001| 23,708| 18%| 31,771| -12%|
+---------------------------------+-------+-------+------+-------+------+
|Gross Profit | 17,439| 13,843| 26%| 20,057| -13%|
+---------------------------------+-------+-------+------+-------+------+
|Gross Margin | 62%| 58%| | 63%| |
+---------------------------------+-------+-------+------+-------+------+
|EBITDA | 3,977| 1,776| 125%| 6,157| -35%|
+---------------------------------+-------+-------+------+-------+------+
|EBITDA-Margin | 14%| 7%| | 19%| |
+---------------------------------+-------+-------+------+-------+------+
|Recurring Operating Income | 2,369| 168|1,310%| 4,221| -44%|
+---------------------------------+-------+-------+------+-------+------+
|Recurring Operating Income-Margin| 8%| 1%| | 13%| |
+---------------------------------+-------+-------+------+-------+------+
|Net Profit (loss) | 2,141| (448)| NA| (193)| NA|
+---------------------------------+-------+-------+------+-------+------+
|Net Profit-Margin | 8%| (2%)| | 13%| |
+---------------------------------+-------+-------+------+-------+------+
|Recurring Earnings Per Share | 0.03| (0.01)| NA| 0.05| -40%|
+---------------------------------+-------+-------+------+-------+------+
|Backlog | 40,000| 36,148| 11%| 40,225| -1%|
+---------------------------------+-------+-------+------+-------+------+
|Cash Position | 59,938| 51,693| 16%| 57,473| 4%|
+---------------------------------+-------+-------+------+-------+------+
Vizrt Product Line and Geographical Overview
Broadcast Graphics (BG)
BG revenues accounted for 71% of total revenues, or MUSD 20.0, a 13% growth Y-o-
Y. Compared to Q4 2010, BG revenues were down 14%, which is typical for the
first quarter of the financial year compared to a traditionally strong fourth
quarter. BG remains the largest revenue contributor.
Media Asset Management (MAM)
MAM continued on the growth path. Q1 2011 Revenues came in at MUSD 5.0, a 13%
growth Y-o-Y. Compared to Q4 2010, MAM revenues were down 12%. MAM is the
second largest contributor to revenues with a share in total revenues of 18% in
Q1 2011.
Online & Mobile (ONL & MOB)
Of all Vizrt product lines, ONL & MOB posted the strongest growth rate of 82% Y-
o-Y. Q1 2011 revenues came in at MUSD 3.0, compared to MUSD 1.6 in Q1 2010. As
compared to Q4 2010, revenues were up 6%. The strong growth for the product line
includes a transaction with a large existing broadcast customer in Northern
Europe on the supply of Vizrt's online product suite and a positive effect due
to the acquisition and consolidation of Adactus from Q3 2010. The product line
contributed 11% to total revenues in Q1 2011.
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 in line with the expected revenue growth for this product
line.
Geographical Overview
Better reach and further penetration in the regions contributed to revenue
growth in all regions as compared to Q1 2010. The strongest growth was recorded
in The Americas, with revenues up by 26% to MUSD 6.5, as compared to MUSD 5.1
for Q1 2010. Revenues in the APAC region were up 24%, from MUSD 5.3 to MUSD
6.6. Revenues in the EMEA region were up 13%, from MUSD 13.2 to MUSD 14.9.
FINANCIALS
Gross profit and gross margin
The gross margin for Q1 2011 was 62% as compared to 58% for the same period LY.
The gross profit in Q1 2011 as well as in Q1 2010 was affected by a MUSD 0.8
amortization of intangible assets resulting from acquisitions. Adjusted for
these amortization effects, the gross margin was 65%, compared to 62% LY.
Operating expenses
Total operating expenses in Q1 2011 totaled MUSD 15.1, up 10% compared to the
same period LY. The increase was mainly due to an increase in headcount
following the Adactus' acquisition and the ongoing implementation of the
regionalization program, as well as a general salary increase implemented
throughout the company in 2011 and currency effects due to volatile exchange
rates.
Recurring Operating Expenses Summary
+---------+--------+--------+--------+
| In KUSD | Q111 | Q110 | Q410 |
+---------+--------+--------+--------+
| R&D | 4,609 | 3,860 | 4,493 |
+---------+--------+--------+--------+
| S&M | 7,859 | 7,299 | 8,379 |
+---------+--------+--------+--------+
| G&A | 2,602 | 2,516 | 2,964 |
+---------+--------+--------+--------+
| OPEX | 15,070 | 13,675 | 15,836 |
+---------+--------+--------+--------+
Order backlog
The order backlog as of May 19, 2011 was MUSD 40.0, up 11%, compared to last
year MUSD 36.1, and down 1% compared to the Q4 2010 results release date. BG
backlog was at MUSD 23.2, MAM backlog at MUSD 11.0 and ONL & MOB backlog at MUSD
5.8. For BG and ONL & MOB the backlog was up 37% and 29% respectively compared
to the same period LY, whereas for MAM the backlog was down 25%, comparing to
the same period LY.
Cash Flow, Liquidity and Equity
Net cash provided by operating activities in Q1 2011 was MUSD 2.4 and at the
same level as in Q1 2010.
Vizrt has a strong financial position with no interest-bearing debt and a net
cash position of MUSD 59.9 as of March 31, 2011 (including MUSD 0.5 restricted
cash), compared to MUSD 57.5 as of December 31, 2010. Furthermore shareholders'
equity as of March 31, 2011 was MUSD 115.7, which is equivalent to an equity
ratio3 of 77%.
Organization
As of March 31, 2011, the Company had 546 employees, compared to 498 at the end
of Q1 2010. This increase is mainly due to increased staffing in low cost
countries as well as an additional 16 employees following the acquisition of
Adactus in Q3 2010.
OUTLOOK
Martin Burkhalter, CEO of Vizrt, stated, "Over the past few quarters, the
Company has entered a phase of strong and stable growth. This growth is on the
one hand caused by the continued recovery of the general economic climate but on
the other hand very much the result of our strategy execution."
"Although part of our customers' revenues derives from subscriptions, the simple
underlying economic truth for the media sector is that income is related to a
content owner's ability to attract advertising revenues. To protect margins,
operations should be as efficient as possible. This all translates into
investments in technology that help to differentiate by 'telling a story
differently, implement more efficient workflows, maximize the economic life and
value of digital media assets and allow for addressing multiple audiences over
different platforms and on widely varying content access devices."
"What we have achieved over the past years is to build a company that is
positioned to assist our clients in addressing all the above objectives through
a comprehensive and integrated offering of products and solutions. BG helps to
tell and improve the story, MAM helps to optimize the handling of the content
and ONL & MOB help to deliver the content to the various audiences. Each
business segment in itself has efficient work flows that can be enhanced further
through integration. That is what customers appreciate about Vizrt and what has
allowed us to grow above industry average.
"Obviously there are other factors in our customers' environment that drive
sales, such as technology changes. Although it has been around for some time,
the migration to HD, for instance, is far from complete. Devoncroft, a research
firm, estimates that around 40% of broadcasters are yet to start this migration,
with some planning to start as late as 2013 and only 22% of broadcasters
finished the migration. The next big shift the industry anticipates is that of
3D. As we speak, over 50 channels are now on air or are scheduled to go live in
the next few months. These technology shifts create additional opportunities
for Vizrt and we are well positioned to benefit from them."
"The number of visitors and the positive customer feed-back at our booth at this
year's NAB, strongly supports our own perception of being well positioned with
our product offering. Broadcasters recognize that our product portfolio offers
the solutions they are looking for to help them solve some of their biggest
challenges such as gaining workflow efficiencies and multiplatform
distribution."
"Although it is too early to make a prediction for the remainder of this year,
for the immediate future we anticipate further stable growth.
Shareholders Events
An analyst conference will be held at 9:00 a.m. (CEST)
at theDnBNor Head Offices, Aker Brygge, Stranden 21 in Oslo
An international Conference Call will be held at 11:00 a.m. (CEST)
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)
A replay of the call will be available until May 26, 2011. Please use the
following dial-in-number:
+49 30 868 75 7010 (Germany)
+44 203 024 54 07 (UK)
passcode: 9418547#
The Q2 2011 results will be released on August 11, 2011.
Contacts
Martin Burkhalter
CEO
+41 79 795 24 48
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.
Press Release including tables:
http://hugin.info/138784/R/1517001/453447.pdf
Management Presentation:
http://hugin.info/138784/R/1517001/453467.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#1517001]
Unternehmensinformation / Kurzprofil:
Datum: 19.05.2011 - 07:00 Uhr
Sprache: Deutsch
News-ID 54813
Anzahl Zeichen: 14585
contact information:
Town:
Bergen
Kategorie:
Business News
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