Evertz Q3 FY 2013 Revenue Flat With Last Year, Down 14 Percent Versus Last Quarter

Posted by Joe Zaller
Mar 07 2013

Evertz announced that its revenue for the third quarter of its 2013 fiscal year was C$71.8m, essentially flat versus the same period a year ago, and down of 14% versus the previous quarter.

Net earnings for the quarter were C$13.2m (C$0.18 per share), up 6% versus the same quarter last year, and down 28% versus the previous quarter.

The results were below the consensus expectations of equity analysts who were looking for revenue of C$81.6m and EPS of C$0.24.

Investors did not like the news and sent the company’s stock down by more than 8% the first trading day after the results were issued.

Evertz EVP Brian Campbell attributed the lower than expected results to competitive pricing pressure and the delay of capital projects by customers.

Revenue in the US/Canada region was C$33.8m, up 6% versus the same period a year ago, and down 28% versus the previous quarter. US/Canada sales were 47% of total revenue during the quarter, up from 45% of revenue during the same period a year ago, and down from 56% of revenue last quarter.

International revenue was C$38m, a decrease of 4% versus the same period last year, and an increase of 4% versus the previous quarter. International sales were 53% of total revenue, down from 55% last year, and up from 44% last quarter.

The company had 57 orders in the quarter that were greater than C$200,000 (down from 70 last year, and 61 last quarter).

Gross margins in the quarter were 56.1%, down slightly from 56.2% last year and down from 59% last quarter. Evertz CFO Anthony Gridley said that gross margins in the quarter were within the company’s historical range.

R&D expenses in the second quarter were C$13.1m, an increase of 18.5% versus the same period last year, and up 4% versus the previous quarter.  R&D expenses were approximately 18% of revenue in the quarter, versus 15% last year, and 15% last quarter when revenue came in at C$96m.

SG&A expenses for the quarter were C$13.7m, an increase of 8% versus last year, and an increase of 5% versus the previous quarter. Selling and administrative expenses represented approximately 19% of revenue in the quarter versus 18% of revenue during the same period last year, and 16% of revenue last quarter.

The company’s purchase order backlog at the end of the third quarter of 2012 was in excess of C$45m, up from C$41m last quarter. Campbell said the bulk of this backlog will be delivered in the company’s fiscal Q4, but indicated that a portion of the backlog would be turned into revenue over multiple future quarters.

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Related Content:

Press Release: Evertz Technologies Third Quarter Fiscal 2013 Earnings Per Share Up 6%

More Broadcast Vendor M&A: Evertz Makes $5 Million Mystery Buy

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

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

Previous Year: Evertz Revenue and Earnings Decline in Fiscal Q3 2012 Despite Improving International Performance

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