Evertz Discloses Orders Worth More Than $12 Million From Two Mystery US Customers

Posted by Joe Zaller
Nov 02 2012

Broadcast infrastructure specialist Evertz Technologies reported that it has received purchase orders “from two national US customers, totaling in excess of $12 million.”

The company says that these orders “reflect the adoption by key customers of Evertz latest technologies for large scale routing, infrastructure and control solutions.”

This announcement is an unusual move for Evertz, which has a reputation for being tight-lipped about its operations, so it begs the question why the company made announcement and whether there is any implication to its timing.

After all, Evertz is a C$300M+ company so big orders are a regular occurrence.

When the company reported its results for the quarter that ended July 31, 2012, Evertz posted revenue of C$96m last quarter, up 28% versus the same period a year ago, and up 26% versus the previous quarter.

During the company’s most recent quarter, Evertz said it had received 76 orders of C$200,000 or more, and that the top ten customers in the quarter had accounted for 41% of revenue – that’s almost C$40m, or an average of almost C$4m per customer.

More significantly Evertz said that one (unnamed) customer last quarter accounted for 15% of total revenue, or C$14.4m — in other words, a single customer last quarter placed orders worth about twenty percent more than the two customer wins announced today – but the company did not announce it via a press release.

So why today’s announcement?

Maybe Evertz wants to show continued growth in the US market at a time when others are struggling there – for example, when Avid issued their Q3 2012 results, they said Americas revenue declined 19%year-over-year, and Harris Corp William Brown said during the company’s Q1 FY13 conference call that the results of Harris Broadcast (BCD) “were a little less than what we had expected, both because the market’s a little bit tough and because some of the issues around our selling the business [caused] some of our customers to be a bit hesitant.”

Maybe they want to demonstrate that their order backlog (which was at a record level two quarters ago) is being re-built after the Olympics and US elections.

Or maybe they have decided to be more communicative with the market. Other public companies in the broadcast space have taken this decision.  For example Vizrt decided to do this recently – they now announce all deals over a certain value in order to give the market more visibility.

Perhaps time will tell.

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Related Content:

Press Release: Evertz Receives Purchase Orders Totaling Over $12 Million

Most Recent Quarter: Evertz Beats Expectations in Q1 Fiscal 2013 as Profits Jump 41 Percent

Previous Quarter: Evertz Q4 FY 2012 Revenue Rises 11 Percent, Order Backlog at Record Level

Previous Year: Evertz Beats Expectations in Q1 2012 as Domestic Revenue Increases Six Percent

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