Vizrt Reports 9 Months and Q3 2011 Results - Dynamic BG Business Drives Revenue Growth
(Thomson Reuters ONE) -
Dynamic BG Business Drives Revenue Growth
Bergen, Norway, November 10, 2011. Vizrt Ltd. (Oslo Main List: VIZ)
For the first nine months of 2011, the Company posted a 24% revenue growth
compared to the first nine months of 2010 and a 23% revenue growth compared to
Q3 2010. Main contribution to revenue growth was the strong performance of the
BG product line, which for the first time included the results of LiberoVision.
Geographically, APAC led growth with a 54% increase, compared to the first nine
months of 2010. Profitability has significantly improved compared to LY,
including both gross margin and EBIT margin.
HIGHLIGHTS
* Revenues for the first nine months of 2011 came in at MUSD 91.9, up 24%
from the same period in 2010. Revenues for Q3 2011 were MUSD 31.8 up 23%
compared to same period LY.
* EBIT of MUSD 11.3 for the first nine months of 2011 and MUSD 3.8 for Q3
2011, corresponding to a 12% margin for both periods, compared to MUSD 5.3
(7%) and MUSD 2.7 (10%) for the same periods LY.
* EBITDA of MUSD 16.0 for the first nine months of 2011and MUSD 5.6 for Q3
2011 corresponding to a 17% and 18% margin respectively, compared to MUSD
9.9 (13%) and 4.3 (17%) for the same periods LY.
* The Company posted a net profit of MUSD 10.0 (11%) for the first nine months
of 2011 and MUSD 3.3 (10%) for Q3 2011 compared to MUSD 4.7 (6%) and MUSD
4.0 (16%) for the same periods LY.
* Backlog to date of MUSD 48.7, up 29% compared to the same period LY.
* Cash flow generated from operating activities for the first nine months of
2011 was MUSD 12.2, compared to MUSD 4.6 for the first nine months of 2010.
Net cash provided by operating activities in Q3 2011 was MUSD 6.8, compared
to MUSD 1.0 for Q3 2010. As of September 30, 2011 the net cash position was
MUSD 62.4, down from Q2 2011 by MUSD 1.5 due to a net cash payment of MUSD
6.3 related to the LiberoVision acquisition.
* On July 1, 2011 the Company successfully closed the acquisition of the
first tranche of 60% of all the issued and outstanding shares of
LiberoVision AG (LV), a leader in the field of virtual sports enhancements,
complementing Vizrt's workflow solution in BG. LV is fully consolidated from
July 1, 2011.
Martin Burkhalter, Vizrt CEO, commented on the results: "The results we posted
in Q3 are in line with our expectations. Our BG business continues to perform
strongly, this quarter further boosted by the consolidation of LiberoVision
following the acquisition. The general trading environment, although not overly
strong, did not change too much from previous quarters. We did, however,
experience a negative effect on our non-BG revenues as potential customers seem
to take longer to commit to larger investments. In addition, our MAM and ONL &
MOB results were to some extent negatively impacted by delayed deliveries,
mainly caused by seasonal holidays, the effects of which vary from year to year.
However, our healthy order backlog clearly indicates that budgets are still
available and that broadcasters continue to invest in our technology."
Results Overview
+-------------------+--------+--------+------------+--------+-------------+
| In KUSD | Q32011 | Q32010 | Change in% | Q22011 | Change in % |
+-------------------+--------+--------+------------+--------+-------------+
| Revenue | 31,760 | 25,889 | 23% | 32,098 | -1% |
+-------------------+--------+--------+------------+--------+-------------+
| Gross Profit | 21,080 | 16,279 | 29% | 21,166 | 0% |
+-------------------+--------+--------+------------+--------+-------------+
| Gross Margin | 66% | 63% | | 66% | |
+-------------------+--------+--------+------------+--------+-------------+
| EBIT | 3,792 | 2,696 | 41% | 5,135 | -26% |
+-------------------+--------+--------+------------+--------+-------------+
| EBIT-Margin | 12% | 10% | | 16% | |
+-------------------+--------+--------+------------+--------+-------------+
| EBITDA | 5,628 | 4,282 | 31% | 6,421 | -12% |
+-------------------+--------+--------+------------+--------+-------------+
| EBITDA-Margin | 18% | 17% | | 20% | |
+-------------------+--------+--------+------------+--------+-------------+
| Net Profit (loss) | 3,320 | 4,033 | -18% | 4,508 | -26% |
+-------------------+--------+--------+------------+--------+-------------+
| Net Profit-Margin | 10% | 16% | | 14% | |
+-------------------+--------+--------+------------+--------+-------------+
| EPS | 0.05 | 0.06 | -17% | 0.07 | -29% |
+-------------------+--------+--------+------------+--------+-------------+
| Backlog | 48,673 | 37,716 | 29% | 49,792 | -2% |
+-------------------+--------+--------+------------+--------+-------------+
| Cash Position | 62,374 | 50,461 | 24% | 63,874 | -2% |
+-------------------+--------+--------+------------+--------+-------------+
Vizrt Product Lines and Geographical Overview
Broadcast Graphics (BG)
BG revenues for the first nine months of 2011 accounted for 76% of total
revenues with MUSD 69.5, a 28% growth Y-o-Y and a 32% growth comparing Q3 2011
to Q3 2010. Compared to Q2 2011, BG revenues were up 9%.
Media Asset Management (MAM)
MAM revenues for the first nine months of 2011 accounted for 16% of total
revenues with MUSD 14.6, a 4% growth Y-o-Y and 10% decrease comparing Q3 2011 to
Q3 2010. Compared to Q2 2011, MAM revenues were down 24%.
Online & Mobile (ONL & MOB)
ONL & MOB revenues for the first nine months of 2011 accounted for 8% of total
revenues with MUSD 7.8, compared to MUSD 5.7 for the first nine months of 2010,
a 38% growth, of which organic growth accounted for 18%. Comparing Q3 2011 to
Q3 2010, the growth was 2%. Compared to Q2 2011 ONL & MOB revenues were down
37%.
Geographical Overview
All regions contributed to the improved performance as compared to the first
nine months of 2010, with the strongest growth recorded in APAC, where revenues
went up by 54% to MUSD 21.5, as compared to MUSD 13.9 for the first nine months
of 2010. Revenues in the EMEA region were up by 21%, from MUSD 41.8 to MUSD
50.4, and revenues in the AMERICAS were up 10%, from MUSD 18.2 to MUSD 20.0.
FINANCIALS
Gross Profit and Gross Margin
The gross margin for the first nine months of 2011 was 65%, 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 the first nine months of
2011 was affected by a MUSD 2.2 amortization of intangible assets from
acquisitions, compared to MUSD 2.3 for the first nine months of 2010. Adjusted
for these amortization effects, the gross margin was 67%, compared to 65% LY.
The gross margin for Q3 2011 was 66%, as compared to 63% for the same period
LY. The gross profit was affected by MUSD 0.9 in Q3 2011, compared to MUSD 0.8
in Q3 2010, due to amortization of intangible assets resulting from
acquisitions. Adjusted for these amortization effects, the gross margin was at
69% compared to 66% LY.
Operating Expenses
Total operating expenses for the first nine months of 2011 were MUSD 48.4, up
19% 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 and currency effects due to volatile exchange
rates have all contributed to the cost increase.
Operating expenses summary
+---------+--------+--------+--------+--------+--------+
| In KUSD | 9m11 | 9m10 | Q311 | Q310 | Q211 |
+---------+--------+--------+--------+--------+--------+
| R&D | 14,425 | 11,235 | 5,057 | 3,690 | 4,759 |
+---------+--------+--------+--------+--------+--------+
| S&M | 25,836 | 22,152 | 9,322 | 7,595 | 8,655 |
+---------+--------+--------+--------+--------+--------+
| G&A | 8,128 | 7,133 | 2,909 | 2,298 | 2,617 |
+---------+--------+--------+--------+--------+--------+
| OPEX | 48,389 | 40,520 | 17,288 | 13,583 | 16,031 |
+---------+--------+--------+--------+--------+--------+
Order backlog
The order backlog as of November 10, 2011, was MUSD 48.7, up 29%, compared to LY
MUSD 37.7, and down 2% compared to the Q2 2011 results release date. LV backlog
amounting to MUSD 3.1 is included under BG. BG backlog was at MUSD 24.6, MAM
backlog at MUSD 19.1, ONL backlog at MUSD 4.2 and Mobile streaming, related to
Adactus, at MUSD 0.8. For BG and MAM backlog was up 33% and 35% respectively
compared to the same period LY, whereas for ONL&MOB the backlog was down 1%,
comparing to the same period LY.
Balance Sheet, Cash Flow and Liquidity
Cash flow generation from operating activities for the first nine months of
2011 was MUSD 12.2, compared to MUSD 4.6 for the first nine months of 2010. Net
cash provided by operating activities in Q3 2011 was MUSD 6.8, compared to MUSD
1.0 in Q3 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 62.4 as of September 30, 2011(including MUSD 0.7
restricted cash), compared to MUSD 57.5 as of December 31, 2010 (including
MUSD 0.5 restricted cash). Furthermore shareholders' equity as of September
30, 2011 was MUSD 121.7, which is equivalent to an equity ratio of 76%.
Organization
At the end of September 30, 2011, the Company had 591 employees, compared to
540 as the end of September 30, 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.
OUTLOOK
Martin Burkhalter, Vizrt CEO, stated, "Compared to 2010, we have recorded strong
growth, driven by favorable economic conditions that prevailed during the first
nine months of the year, the effects of our regionalization program and
customers buying into the unparalleled integration opportunities that Vizrt's
various product lines offer. However, towards the end of the third quarter, we
started to see a lengthening of decision making times for larger investments,
caused by uncertainties in the general economic environment. Although we do not
expect dramatic changes in market conditions for Q4, we believe that the first
signs of cautiousness we observed during the second half of Q3 will continue
into Q4 and possibly beyond. This may have an effect on our Q4, which in normal
years is the strongest quarter of the year. However, with our healthy backlog we
expect the full year results to be in line with our expectations and show a
strong improvement over last year."
The full Q3 Report and the Q3 Management Presentation are available for download
via the links at the end of this message.
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 Q3 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 November 17, 2011. Please use the
following dial-in-numbers:
+49 30 868757040 (Germany); +44 203 024 54 07 (UK), +1 408 9160685 (US)
passcode: 9418547#
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.
Full Q3 Report:
http://hugin.info/138784/R/1562624/484170.pdf
Q3 Management Presentation:
http://hugin.info/138784/R/1562624/484162.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#1562624]
Unternehmensinformation / Kurzprofil:
Datum: 10.11.2011 - 07:01 Uhr
Sprache: Deutsch
News-ID 86219
Anzahl Zeichen: 14334
contact information:
Town:
Bergen
Kategorie:
Business News
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