Evertz Revenue Declines 33 Percent in Q1 Fiscal 2014

Posted by Joe Zaller
Sep 12 2013

Evertz announced that its revenue for the first quarter of its 2014 fiscal year was C$63.85m, down 33% versus the same period a year ago, and down 2% versus the previous quarter.

Net earnings for the quarter were C$11.8m (C$0.16 per share, or C$0.13 excluding For-x), down 52% versus the same quarter last year, and up C$3.7m or 12% versus the previous quarter.

The results were below the consensus expectations of equity analysts who were expecting revenue of C$67.9m and EPS of C$0.14. Analysts called the results “a hair light” but noted that the company’s backlog and shipments for August were very strong.

Revenue in the US/Canada region was C$35.9m, down 40% from C$59.4m last year, and up 8% from C$33.3m last quarter.

US/Canada sales were 56% of total revenue during the quarter, down from 62% % of revenue during the same period a year ago, and up from 41% of revenue last quarter.

The international region had revenues of C$27.9m or 44% of total revenue, down 24% from C$36.6m (38% of total), and up down 13% versus last quarter when international revenue was $31.1m or 49% of total revenue.

For the quarter ended July 31, 2013 gross margin was $36.7 million compared to $55.7 million in the same quarter last year. Gross margin percentage was approximately 57.5% compared to 58.0% in the same quarter last year.

Gross margins for the first quarter of FY 2014  were 57.5, down from 58% during the same period a year ago, and up from 56.7% last quarter.

R&D expenses in the quarter were C$13.5m, an increase of 14% versus the same period last year, and down 12% versus last quarter.   R&D expenses were approximately 21% of revenue in the quarter, versus 12% last year, and 23.5% last quarter.

Selling and administrative expenses for the quarter were C$11.6m, down 6% versus last year, and down 17% versus last quarter.   Selling and administrative expenses represented approximately 18% of revenue in the quarter versus 13% of revenue during the same period last year, and 21% of revenue last quarter.

Purchase order backlog at the end of August 2013 was in excess of $53 million and shipments during the month of August 2013 were $25 million.

The company’s purchase order backlog at the end of the first quarter of fiscal 2014 was in excess of C$53m, up sharply from C$35m, last quarter, and shipments during the month of August 2013 were C$25 million.

 

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Related Content:

Press Release: Evertz Technologies Reports Results for the First Quarter Ended July 31, 2013.

Evertz Announces 5 Percent Share Buy Back Program

Evertz Announces $9 Million Order From Unnamed International Customer

Previous Quarter:  Evertz Misses Expectations as Revenue Dip 14 Percent in Q4 FY 2013, Still Delivers Record Full-Year Performance

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

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