Evertz Q2 Revenue Up 18 Percent Y/Y, Down 13 Percent Q/Q Following Record Q1 2013

Posted by Joe Zaller
Dec 04 2012

Evertz announced that its revenue for the second quarter of its 2013 fiscal year was C$83.2m, an increase of 18% versus the same period a year ago, and a decline of 13% versus the previous quarter.

Net earnings for the quarter were C$19.1m (C$0.26 per share), up 19% versus the same quarter last year, and down 23% versus the previous quarter.

The results were slightly below the consensus expectations of equity analysts who were looking for revenue of C$84m and EPS of C$0.27.

Revenue in the US/Canada region was C$46.7, up 30% versus the same period a year ago, and down 21% versus the previous quarter. US/Canada sales were 56% of total revenue during the quarter, up from 51% of revenue during the same period a year ago, and down from 62% of revenue last quarter.

International revenue was C$36.4m, an increase of 5% versus the same period last year, and essentially flat with the previous quarter. International sales were 44% of total revenue, down from 49% last year, and up from 38% last quarter.

The company had 61 orders in the quarter that were greater than C$200,000 (down from 76 last quarter), and the top ten customers accounted for 31% of total revenue (C$25.8m), with no single customer accounted for more than 5% (C$4.2m) of total revenue.

Gross margins in the quarter were 59%, up from 57% last year and up from 58% last quarter.  Company CFO Anthony Gridley attributed the increase in gross margins to product mix and equipment rental in the quarter (presumably for the 2012 Olympics). Gridley did not disclose the amount of rental revenue in the quarter, but stated that it was enough to increase the gross margin by one percentage point.

R&D expenses in the second quarter were C$12.6m, an increase of 26% versus the same period last year, and up 7% versus the previous quarter.  R&D expenses were approximately 15% of revenue in the quarter, versus 15% last year, and 12% last quarter when revenue came in at C$96m.

SG&A expenses for the quarter were C$13.1m, an increase of 12% versus last year, and an increase of 6% versus the previous quarter. Selling and administrative expenses represented approximately 16% of revenue in the quarter versus 13% of revenue during the same period last year, and 17% of revenue last quarter. Gridley said the IBC tradeshow, which occurred during the quarter, contributed to the increase in spending.

The company’s purchase order backlog at the end of the quarter 2012 was in excess of C$41m, up from C$40m last quarter.

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Related Content:

Press Release: Evertz Technologies Second Quarter Fiscal 2013 Revenue and Earnings Up 18%

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

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

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