Vizrt reported that its revenue for the fourth quarter of 2011 was $35.5m, an increase of 5% versus the same period a year ago, and up 12% versus the previous quarter. Full year revenue was $125m, an increase of 19% versus 2010, and record result for the company.
Gross margins for the fourth quarter of 2011 were 69%, up from 63% last year and up from 66% last quarter. EBITDA was $8.9m for the quarter, an increase of 44% versus last year and an increase of 58% versus last quarter. The EBITDA margin for the quarter was 27%. Net profit for the quarter was $6m versus a loss of $193,000 a year ago, and up by 81% versus $3.32m last quarter.
Product Line Results for the Quarter:
- Broadcast Graphics (BG) accounted for $26.8m during the quarter (75% of total revenue), an increase of 15% versus last year and an increase of 4% versus last quarter.
- Media Asset Management (MAM) revenue in the quarter was $4.6m (13% of total revenue), down 18% versus the same period a year ago, and up 4% versus last quarter.
- Online & Mobile (OLM) revenue in the quarter was $2.1m, down 26% versus last year and up 12% versus last quarter. Vizrt said that in the future it will include mobile into its existing product lines for reporting purposes.
Geographic Performance for the Quarter:
- Revenue from EMEA was $18.6m (51% of total revenue), up 5% versus the same period last year and up 6% versus last quarter
- Americas revenue was $7.8m (22% of total revenue), up 7% versus last year, and up 16% versus last quarter
- APAC revenue was $7.1 (20% of total revenue), up 5% 5% versus last year and down 4% versus last quarter
Full Year Results:
Revenue for the full year 2011 was $125m, an increase of 19% versus 2010, and record result for the company.
Gross margins for the year were 66%, up from 62% in 2010. EBIT for 2011 was $18.5m, or 15%, an improvement from a 9% EBIT margin last year.
Total operating expenses for FY 2011 were $64.4, up 7.5% compared to full year 2010. 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. In its press release, the company pointed out that the increase in total operating expenses was below the revenue growth rate (7.5% versus 19%).
R&D expenses for the year were $19.1m up 22% versus last year, but remained steady at 15% of revenue. G&A expenses increased by 13% 10 $11.4m, but declined as a percentage of total revenue for the year. Sales & Marketing expenses also rose during the year in dollar terms but declined as a percentage of overall revenue.
EBITDA for the year was 24.9m (20%), an increase from $16.1m in 2010 (15%).
The company ended the year with $73.1m in cash, up $10.7 from the third quarter of 2011.
Product Line Results for the Full Year:
- Broadcast Graphics revenues for 2011 were $96.2 or 77% of total revenues. 2011 revenue from broadcast graphics was up 24% versus 2010
- MAM revenues for 2011 were $19.2m, or 15% of total revenue . 2011 MAM revenue declined 2% versus 2010
- Online & mobile revenue for 2011 was $9.9m or 8% of total revenues. Compared to 2010 OLM decreased 26%. In a change to its reporting the company says it will no longer separately report OLM revenue because “Our Mobile technology is basically a technical extension of our existing business lines (MAM, Online, BG) and it is therefore natural to include Mobile as a product into our existing business lines.”
Geographic Performance for the Full Year:
The company said that all regions contributed to the improved performance in 2011, with the strongest growth recorded in APAC, where revenues went up by 38% to $28.5m versus the previous year. Revenues in the EMEA region were up by 16%, $69m. Revenue from the Americas region was up 9% versus 2010 to $27.8m.
Outlook for 2012
Martin Burkhalter, Vizrt CEO, stated, “Despite the strong Q4 performance, we sense that the macroeconomic environment continues to be characterized by uncertainty. We are receiving some mixed signals from the market and concerns related to public debt, uncertainties related to the EURO, and signs of lower economic growth in the Eurozone countries and the U.S., might in the mid or long-term have an adverse impact on market conditions. However, based on our strong product offering, combined with certain large events such as the Olympic Games and the European Football Championships, as well as the 2012 U.S Presidential elections, we reiterate our outlook for 2012 of an organic revenue growth target of around 13%, with full year EBITDA improving towards our long term target of 23%.
“For 2012 we will focus on organic growth through consolidation of past acquisitions, further integration between product lines and our increased sales capabilities in the regions. Due to the prevailing uncertainty, we will continue to focus strongly on controlling OPEX to protect our profitability.”
Press Release: Vizrt Ltd. Reports 2011 and Q4 2011 Results with New Records
Previous year: Vizrt Reports Record 2010 Revenue as Sales Jump 23 Percent http://bit.ly/eqbAyT
Previous Quarter: Vizrt Reports Q3 2011 Results
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