In its earnings announcement, the company pointed out that the first quarter is typically lower than Q4 (which was a record for Vizrt), but reiterated its previously issued guidance of 13% revenue growth and improving margins for the full year 2012.
Gross margins for the first quarter of 2012 were 67%, up from 62% last year and down from 69% last quarter. The company attributed the stronger gross margin performance to improved margins from its Media Asset Management (MAM) product line. Vizrt disclosed that its MAM order book is now 80% higher than it was at the same time last year.
Operating expenses for the quarter were $17.1m, up 13% versus last year due to increased headcount and the acquisition of LiberoVision last July.
EBITDA was $5.6m for the quarter, an increase of 40% versus last year and a decrease of 37% versus last quarter. The EBITDA margin for the quarter was 18% versus and EBITDA margin of 14% last year.
Net profit for the quarter was $2.1m, flat with the same period a year ago, and down from $6m last quarter.
Product Line Results for the Quarter:
- Broadcast Graphics (BG) accounted for $24.9m during the quarter (79% of total revenue), an increase of 24% versus last year and a decline of 7% versus last quarter. The BG order backlog was $25m as of May 8, 2012, up 8% versus last year.
- Media Asset Management (MAM) revenue in the quarter was $5.2m (16% of total revenue), up 8% versus the same period a year ago, and up 13% versus last quarter. The MAM order backlog was $21m as of May 8, 2012, up 80% versus last year.
- Online & Mobile (OLM) revenue in the quarter was $1.6m (5% of total revenue), down 38% versus last year and down 12% versus last quarter. The OLM order backlog was $4m as of May 8, 2012, down 19% versus last year.
Geographic Performance for the Quarter:
- Revenue from EMEA was $17.9m (56% of total revenue), up 20% versus the same period last year and down 4% versus last quarter
- Americas revenue was $7.1m (22% of total revenue), up 9% versus last year, and down 9% versus last quarter
- APAC revenue was $7.1 (20% of total revenue), up 2% versus last year, and down 6% versus last quarter
The company ended the quarter with 583 employees and $68.6m in cash.
Company CEO Martin Burkhalter said he was pleased with the results, which were in line with the company’s expectations. Burkhalter said that although Q1 is traditionally the weakest quarter of the year, Vizrt managed to record strong improvements, both for revenues and operating results.
“We have witnessed no material change in the business climate other than that we sense that businesses have gotten used to and seem less affected by uncertainty, which has been the overriding sentiment these past few quarters, and as a result are less retracted in their investment outlook,” said Burkhalter.
“Accordingly our level of comfort regarding the short to mid-term outlook has strengthened. Based on the general climate, several large upcoming events, the relevance of our product offering and the strength of our organization to convert opportunities into actual sales, we reiterate our earlier guidance of 13% revenue growth and improving margins.”
Press Release: VIZRT Reports Q1 2012 Results – Positive Start to the Year
Vizrt Q1 2012 Analyst Presentation
Previous Quarter: Vizrt Reports Record Revenue in 2011, Targets 13 Percent Growth in 2012
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