Broadcast graphics and media asset management specialist Vizrt said its revenue for the full year 2012 will be less than previously projected, due to lower than anticipated results in the past three months, especially in EMEA and the Americas.
The company attributed the recent sales decline to market conditions in the Americas and EMEA that “seem to have deteriorated as a result of the continued economic uncertainties.” The company said that as a result of greater economic uncertainty, customers in these territories are making purchasing decisions more slowly and in some case are postponing of larger projects.
Vizrt is now estimating revenues for the second quarter 2012 to be in the range of $28m to $30m, a decline of 7% – 13% versus the $32.1m achieved in Q2 2011. As a result, the company also expects EBITDA for Q2 and the full year 2012 to be impacted.
At the time of the company’s most recent earnings release in May of 2012, Vizrt CEO Martin Burkhalter issued a cautiously optimistic statement about the company’s outlook for 2012. “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. 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.”
Today the company revised this guidance saying “Unless market conditions will improve during the rest of the year, the company believes that the earlier communicated revenue growth target of 13% for 2012 will have to be adjusted.”
Press release: Vizrt Provides Outlook Update
© Devoncroft Partners. All Rights Reserved.