Vizrt Announces Q2 and 1H 2010 Results

Posted by Joe Zaller
Aug 12 2010

Broadcast graphics and asset management provider Vizrt announced its Q2 and 1H results.

Revenue for the quarter was $24.2m, an increase of 17% versus the same period last year.  Revenue for the first half of 2010 was $48m, an increase of 26% versus 1H 2009.

Gross margins for the quarter were 65%, well ahead of the 58% that the company achieved during the same period a year ago.

Broadcast graphics accounted for 72% of the company’s total revenues in 1H 2010.  According to the company, Vizrt’s graphics business is up 33% y/y

Media Asset Management (MAM) revenues for 1H 2010 were $9.4m (20% of 1H), up 31% versus 1H 2009.  For the quarter, MAM revenues were up 23% versus the same period a year ago.  The company attributed the increase in MAM revenue to “the general improvement of the market conditions, a growth in RFPs related to strategic investments, our ability to convert a large part of the outstanding RFPs into business for Vizrt and our improved capacity to deliver projects.”

Online activities contributed 8% to the company’s 1H 2010 results.

Geographically, the largest revenue contributor continued to be the EMEA region, but the strongest growth came from the Americas, which was up 42% y/y and 28% q/q.  Revenue from the Asia-Pac region was down 23% q/q, which the company attributed to orders lost in Thailand due to political unrest.

Company CEO Martin Burkhalter said that “top line results for the second quarter could have been even better, bar for three developments in the market: Firstly, the strong recovery of the US Dollar compared to other currencies and especially the Euro had a significant impact on our top line. Secondly, the effects of the Vulcano eruption in Iceland earlier this year delayed certain sales efforts, affecting our Q2 top line. Finally, the political instability in Thailand, currently one of our more important markets in Asia Pacific and also used as a hub for the region, had a clear negative impact on revenue development in this area.”

The company issued a relatively upbeat forecast, saying “The positive trends we signaled in our previous results releases continue to hold true. Improvements in the general market conditions, combined with technology driven change, such as the migration to HD and to file based workflows, contributed to the strong growth we posted. Our efforts to strengthen and integrate our operations at the regional level are also starting to pay dividend. For the remainder of this year we therefore expect this development to continue, especially in Broadcast Graphics and MAM.”

Vizrt always provides very detailed documentation with their results.

Here is a link to the full earnings press release.

The company’s presentation to equity analysts can be found here.

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