EVS Reports Strong Q2 Results: Revenue up 61.2%, Operating Margins of 52.4%

Posted by Joe Zaller
Aug 26 2010

Belgian-based broadcast sports slow motion and studio server specialist EVS announced strong results for the second quarter of 2010 today, driven by an improving broadcast market and the 2010 World Cup.  The company also reported a strong order book of future orders.

The company reported revenue of €30.2m during the quarter, with gross margins of 79.4% and operating margins of 52.4%. The revenue for the quarter represents an increase of 61.2% versus the same period a year ago, and an increase of 41.6% at constant currency and excluding rental income from major events. Sales were positively impacted by the 2010 World Cup, where EVS supplied more than €5m of equipment (with rental revenues split over Q2 and Q3).

For the first half of 2010, EVS revenue came in at €51.1m, an increase of 40% versus 2009. Operating margins for the first six months were 49.9%.

The company also announced that its summer order book had risen by 64.8% to €38.9m, 40% of which is for studio applications.

Revenue was up in all geographic regions.

EMEA revenue increased 83.9% to €17.6m, with studio applications accounting for 58% of sales.  The company said that the fragmentation of the European market continues to present a strong opportunity as broadcasters in multiple countries make the transition to tapeless workflows and HDTV operations.

Revenue from the Americas region jumped 55.9% to €9m, driven by continuing HD upgrades and expansion of existing workflows.

Sales in Asia rose 7.5%, with studio applications accounting for 69% of the total.  The company says that it expects increased traction in Asia during the second half of the year due to forthcoming large events there.

In both its earnings press release and presentation to analysts, the company stressed that it is investing in its future, saying it has been recruiting new staff and still has 30+ open positions.  The company says it is recruiting software engineers to develop studio applications, and also plans to expand geographically.

The company issued an upbeat statement in its earnings press release.  CEO Pierre L’Hoest declared the 2010 World Cup a huge success and, and highlighted the company’s progress in the studio market, where it continues to make good progress. EVS CFO Jacques Galloy said that the company’s order momentum continues to be solid in both studio and outside broadcast segments, which have benefitted from the market recovery.


EVS always provides a lot of detail in its earnings press release and presentations.

You can read the full EVS earnings press release here

You can see the full EVS presentation to analysts here

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