Production and playout video server specialist EVS reported that its revenue for the first quarter of 2012 was €30m, an increase of 32.5% versus the same period last year, and an increase of 5% versus the previous quarter. Excluding impact of exchange rates and large rental contracts, (a large, but lumpy part of EVS’s revenue), the company’s Q1 2012 revenue was up 34.3% versus last year.
In addition to increased revenue in the quarter, EVS also reported that it had grown its order book to a record €53.8m as of May 9, 2012, up 131.5% versus last year.
EVS also disclosed that it will appoint a new CEO in place to replace former CEO Pierre L’Hoest, who left the company last year.
Gross margins for the first quarter were 77.6%, up slightly versus last year, and down by one percentage point from last quarter.
Operating expenses increased by 16.6% versus the first quarter of last year, partially due to increased employee headcount, and one time R&D tax credit. At the end of March 2012, EVS had 428 full time employees, up 14% versus over March 2011.
The company’s higher revenue in the quarter drove EBIT margins to 45.1% in the quarter versus 39.8% last year, and 41.9% last quarter.
On a segment basis, 59.6% of revenue in the quarter came from outside broadcast, with the remainder coming from studio.
Outside broadcast revenue in the quarter was €17.9m, up 58.1% versus the same period ago, and up 18% versus last quarter. The company said the results exceed earlier expectations and attributed the strong performance in the outside broadcast segment to the third tranche of a major Russian deal (€4m) and new outside broadcast vans in various countries not specifically linked to this year events.
Studio revenue was €12.1m, up 7% versus Q1 last year and down 23% versus last quarter. EVS says it continues to gain market share in the studio segment.
On a geographic basis:
- Revenue from EMEA in the first quarter of 2012 was €17.6m, up 25% last year, representing 59% of group revenue.
- Americas revenue for the first quarter of 2012 was €5.65m, up 20.2% versus last year, representing 19% of total revenue.
- Q1 2012 revenue from the APAC region was €6.8m, up 74.9% versus Q1 of 2011, and represented 23% of total revenue in the quarter.
EVS said that it expects the first half of 2012 to be “very strong,” and perhaps a record result. The company says that while it will benefit in 2012 from the Euro Soccer championships, the London Olympics, and the release of new products but also from strong, it will also see significant business not linked to the big events. The company anticipates that its sales will grow more quickly than its expenses in 2012, leading to margin expansion during the year.
EVS CFO Jacques Galloy said that despite a challenging macro environment, the company had shown strong momentum in all regions, due the success of the new XT3 platform, some traction from next summer’s big sporting events in EMEA and the increasing success rate in the studio segment in the Americas.
Press Release: EVS Reports Revenue and Results for First Quarter 2012
Previous Year: EVS Q1 Revenue Increases 8.7 Percent, Anticipating Strong Second Half of 2011
Previous Quarter: EVS Revenue Declines 3.8% in 2011, But 2012 Order Book Hits Record Levels
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