Evertz Reports Q3 Results

Posted by Joe Zaller
Mar 05 2010

Broadcast technology vendor earnings season continues with Evertz reporting their Q3 results yesterday for the quarter ended January 31, 2010. 

Here is a link to the earnings press release

Revenue for the quarter was C$66.2m, which is a drop of 17% versus the same period last year, and a 9% drop versus the previous quarter. 

The company’s gross margin dropped to 57%, which is below the historical 60+% that Evertz has posted in the past. Gross margins have deteriorated from 61% during the same period last year, and from 58% during the previous quarter of this fiscal year. 

EBIT margins were also lower, but still strong versus most broadcast technology vendors. 

Unlike close competitors Miranda and Harris who have both already released their latest results, Evertz did not make a comment about the market bottoming in their press release.  However, the company’s results are not bad given the current environment and their heavy exposure to the North American market.  Speaking of which, while North America has slowed, the company has made good progress in the international markets, which were up 25% versus the previous year.  International markets now account for around half of the company’s revenue.

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