Posts Tagged ‘broadcast MAM’

Vizrt Posts 16% Revenue Growth in 2014, Provides Update on Pending $374 Million “Going Private” Deal

Broadcast technology vendor financials, Broadcast Vendor M&A, Quarterly Results | Posted by Joe Zaller
Feb 26 2015

Broadcast graphics MAM specialist Vizrt reported strong results for the fourth quarter and full year 2014.

The company also provided an update on the pending $374 million all-cash deal with Nordic Capital to take the company private.

For the fourth quarter of 2014 revenue was $36.2 million, an increase of 9% versus the fourth quarter in 2013, and an increase of 2.8% versus the preceding quarter, Q3 2014.

Gross margins for Q4 2014 were 71%, which compares favorably to the 69% margins recorded during Q4 2013 and is consistent with the 71% gross margins from the preceding quarter.

Operating expenses for the quarter were $17.9 million.  This represents a 9% increase when compared to the fourth quarter of 2013 and is flat versus the preceding quarter.

  • R&D expenses in the quarter were $5.5m (15.1% of revenue), down 1% versus the same period ago, and down 4% versus the previous quarter

 

  • Sales and marketing expenses in the quarter were $8.5m (23.6% of revenue), up 7% against the year earlier period and down 5% versus the Q3 2014

 

  • General and administrative expenses in the quarter were $3.8m (10.7% of revenue), up 31% versus the same period a year ago, and up 18% versus the preceding quarter

 

EBITDA was $7.8 million for the quarter, up 357% from $1.7 million during the fourth quarter of 2013, and up 9% from $7.2 million in the previous quarter.  The EBITDA margin for the quarter was 22% versus an EBITDA margin of 5% during the comparable quarter last year and 21% during the third quarter of 2014.

Net profit for the quarter was $4.5 million, compared to a net loss of $3.4 million last year, and down slightly versus last quarter’s net profit of $5.2 million.

 

Product line results for the Quarter:

  • Broadcast Graphics (BG) accounted for $30.8 million during the quarter (85% of total revenue versus 86.7% last quarter), an increase of 6% versus the same period ago, and an increase of 1% versus the previous quarter. The BG order backlog was $35.6 million, comparable to the size observed at the same time last year, and down 3.6% versus the previous quarter.

 

  • Media Asset Management (MAM) revenue in the quarter was $5.66 million (18% of total revenue versus 16% last quarter), up 5% versus the same period a year ago, and up 35% versus last quarter.   The MAM order backlog was $14.6 million, up 37% versus last year, and up 5% versus last quarter

 

Geographic Performance for the Quarter:

  • Revenue from EMEA was $17.1 million (47.2% of total revenue versus 47.5% last quarter), up 25% versus the same period last year and up 2% versus last quarter

 

  • Americas revenue was $8.9 million (24.8% of total revenue versus 27.6% last quarter), down 14% versus last year, and down 13% versus last quarter.

 

  • APAC revenue was $10.1 million (27.9% of total revenue versus 23.2% last quarter), up 9% versus last year, and up 3% versus last quarter

 

Results for full year 2014:

The full year results were headlined by growth of 31% in EBITDA and 80% in cash flow from operations.

Vizrt’s 2014 revenue was $141.5 million, an increase of 16% versus the $122.4 million recorded during 2013.

Net profit for the 2014 was $15.5 million ($0.23 per share), which is considerably higher than the $3.6 million ($0.06 per share) net profit from 2013.  The attributed its improved profitability to a change in product mix, consistent financial prudence, and the acquisition of Mosart MediaLabs

Gross margins for 2014 were 70%, which was a slight improvement from the 68% margins from 2013.    EBITDA was $27.7m (20% operating margin) for the full year 2014, a significant year-over-year increase from the $15.5 million (13% operating margin) recorded during 2013.

Operating expenses for 2014 were $71.1 million, a 14% increase over the operating expense level of 2013.

  • R&D expenses for the full year were $22.5 million (31.6% of revenue), an increase of 18% versus 2013

 

  • Sales and marketing expenses for 2014 were $35.2 million (49.6% of revenue), up 9% against the sales and marketing expense from 2013

 

  • General and administrative expenses were $13.3 million (18.8% of revenue), up 23% versus the 2013 calendar year

 

The geographic breakdown of 2014 sales consisted of 26% from Americas, 48% from EMEA, and 26% from APAC.

Vizrt ended 2014 with 584 employees compared to 542 at the end of Q4 2013. 24 employees were added following the Mosart acquisition in Q1 2014.

 

 

Update on Pending Acquisition by Nordic Capital

Company management provided an update on its previously announced acquisition by Nordic Capital.  Final closing of the transaction remains subject to certain conditions including the decision of Israeli tax authorities regarding a tax withholding ruling. Vizrt believes the process will come to a positive conclusion in the next several weeks.  The acquisition was first announced on November 10, 2014 and approved by a majority of shareholders on December 18, 2014.

 

 

 

Business Outlook:

Martin Burkhalter, Vizrt’s CEO, stated: “Our strong performance continued in Q4, despite the fact that we did not see the discretional spending towards the year-end that we normally have witnessed in previous years. Our strong performance is also reflected in our solid backlog going forward. I am particular pleased with the improvement of MAM results and the MAM backlog which increased by 37% compared to the same time last year.”

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Related Content:

Press Release: Vizrt Reports Q4 and 2014 Results

Broadcast Vendor M&A: Vizrt to be Taken Private in $374 Million All-Cash Deal

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Broadcast Vendor M&A: Vizrt to be Taken Private in $374 Million All-Cash Deal

Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
Nov 10 2014

Broadcast graphics and MAM specialist Vizrt announced that it will be taken private in an all-cash deal that values the company at $374m.

The buyer is Nordic Capital, a leading Nordic PE firm with four active funds with over EUR 11 billion in total committed capital. Under the terms of the deal Vizrt will be merged with 24 October Holding AG, an entity indirectly controlled by Nordic Capital Fund VIII, and NOR Merger Sub Ltd.

The transaction values Vizrt at a 32% premium to the company’s closing share price November 7, 2014, the last trading day prior to the announcement of the deal, and a 35% premium to the company’s six months volume weighted average share price of the for the period ending on November 7, 2014.

“I and the management team are excited about the opportunities we all believe we have ahead of us,” said Vizrt CEO Martin Burkhalter. “Nordic Capital is very committed to support our growth strategy going forward. Being a privately owned company opens up for accelerated growth opportunities through, amongst others, future acquisitions that support our long-term strategy. The discussion management has held with Nordic Capital over the last few months gives us the necessary confidence that Nordic Capital will fully back-up our continuous efforts to stay ahead of the game by further strengthening our innovative capabilities.”

The deal is expected to close on or around January 31, 2015, provided all conditions for completion have been fulfilled.

Completion of the transaction is subject to the approval by a Shareholders Meeting of Vizrt by simple majority which is expected to be held on or about December 18 2014. Shareholders representing 51.5% of the total share capital of Vizrt have declared that they will vote in favor of the deal

“Our Board has undertaken a careful review of the terms and conditions of the Merger and is unanimous in its recommendation. We consider the cash based offer as fair and in the best interest of our shareholders. We believe that Nordic Capital, with its breadth of expertise and proven track record of developing companies, will be a strong owner of Vizrt.” stated Dag J. Opedal, Chairman of the Board of Directors of Vizrt.

The Company and Nordic Capital shall cooperate for a delisting of the Company’s shares from the Oslo Stock Exchange as soon as possible after the Merger becomes effective.

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Related Content:

Press Release: Nordic Capital to pay NOK 37 in cash per VIZRT Ltd. Share

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© Devoncroft Partners 2009 – 2014. All rights reserved.

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Dalet Issues Final 2012 Results, Revenue Up 10 Percent

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Apr 12 2013

MAM specialist Dalet announced that its board of directors have approved the company’s consolidated financial statements for the 2012 fiscal year.

Consolidated revenue for the year ended December 31, 2012 was €34.4m m, compared to €31.3 m (+10%) in 2011.

Gross margin for the year was €29.7m, compared to €25.2m in 2011. The gross margin rate for 2012 increased from 81% in 2011 to 86%, due to the strong shift away from the Italian subsidiary’s traditional hardware integration business in its domestic market.

The operating profit before non-recurring items for the year was €1.7m, compared to €1.3m in 2011 (+29%).
After taking into account a depreciation of the goodwill of the Italian subsidiary for €0.2 m, the operating profit was €1.5m.
Consolidated net profit for 2012 was €1.2m, compared to €1.3m in 2011.

The company ended the year with €6.5m in cash, up from €5.1m at the end of 2011, and long term debt increased from €1.1m to €1.6m.

Dalet CEO David Lasry said “In 2012 we continued a steady growth trend in revenue and profitability which has confirmed our strategy to provide MAM-driven solution to key market segments. The growth in North America has been significant, especially as related to the sports segment where we are achieving a recognized presence with several successful project deployments and new contracts.”

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Related Content:

Dalet Press Release: Financial Results for 2012

Dalet Reports 10 Percent Revenue Growth in 2012 Thanks to Strong MAM Sales

Previous Year: Dalet Revenue Jumps 22 Percent in 2011, Reports Strong Backlog for 2012

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Vizrt Revenue Declines 6 Percent in Q2 2012 Due to Weakness in EMEA

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Aug 10 2012

Vizrt reported that its revenue for the second quarter of 2012 was $30.15m, a decline of 6% versus the same period a year ago, and a decline of 5% versus the previous quarter.

The net loss for the second quarter of 2012 was $4.4m, compared to a net profit of $4.5m last year, and a net profit of $2.1m last quarter.  The loss in the quarter includes a non-cash impairment charge of $7.8m relating to the 1998 purchase of Escenic.

On an operating basis, the company posted a profit of $3.9m, down 24% from last year, and down 3% versus last quarter.  

EBITDA for the second quarter of 2012 was $5.4m, down 15% versus last year and a down 2% versus last quarter.   The EBITDA margin for the quarter was 18% versus 20% last year and 18% last year.

The results are slightly above the high end of the range the company provided in a profit warning in early July 2012.  At that time Vizrt management estimated that its revenues for the second quarter 2012 would be in the range of $28m to $30m, and that EBITDA for Q2 and the full year 2012 would be impacted.

Gross margins for the second quarter of 2012 were 66%, flat with last year and down from 67% last quarter. 

Operating expenses for the quarter were $15.9m, essentially flat with last year, despite the  fact that the company has added 22 employees since last year, primarily as a result of the purchase of LiberoVision in Q3 2011.  Operating expenses were down 7% versus the previous quarter

According to Vizrt CEO Martin Burkhalter, “In times of uncertainty, OPEX control becomes an important operational focus.  Our discipline has allowed us to protect margins and continue with the healthy cash generation, even though we have continued to invest in R&D.”

The order backlog at the end of the quarter was $48.5m, down 3% versus the same period a year ago, and down 3% versus last quarter.

The company ended the second quarter of 2012 with 582 employees and $69.6m in cash.

 

Product Line Results for the Quarter:

  • Broadcast Graphics (BG) revenue in the quarter was $23m (76% of total revenue), down 4% versus last year and down 8% versus last quarter.  The BG order backlog was $26.5m, down 3% versus last year, and up 6% versus last quarter.

 

  • Media Asset Management (MAM) revenue in the quarter was $5.4m (18% of total revenue), down 10% versus the same period a year ago, and up 4% versus last quarter. The MAM order backlog was $18, up 9% versus the same period a year ago, and down 14% versus last quarter.

 

  • Online & Mobile (OLM) revenue in the quarter was $1.7m (6% of total revenue), down 22% versus last year and up 9% versus last quarter.  The OLM order backlog was $4m, down 32% versus last year, and up 2% versus last quarter.

 

 

Geographic Performance for the Quarter:

  • Revenue from EMEA was $14.9m (49% of total revenue), down 17% versus both last year and last quarter. The company said that the EMEA region is suffering from economic uncertainties.

 

  • Americas revenue was $7.3m (24% of total revenue), up 7% versus last year, and up 4% versus last quarter

 

  • APAC revenue was $7.9 (26% of total revenue), up 7% versus last year, and up 17% versus last quarter.  The company said revenue growth in APAC was solid, despite being affected by a weak performance in India, which is suffering from adverse currency effects of the Rupee vs. the US-Dollar, as well as other economic issues.

 

 

Results for first half of 2012

Vizrt’s revenue for the first six months of 2012 was $61.9m, up 3% versus the first half of 2011.  The net loss for the first half of the year was $2.2m, versus net profit of %6.6m for the first half of 2011.  The net loss in the first half of the year was due to the non-cash impairment charge of $7.8m relating to the 1998 purchase of Escenic.

EBITDA for the first half of 2012 was $11m, up 6% verus the same period last year.  The EBITDA margin was 18%, % compared to 17% last year.

Gross margins for the first half of the year were 66%, up from 64% in H1 2011.

Operating expenses for the first six months were $33.1m, up 6% versus last year.

 

Business Outlook:

Last quarter, the company reiterated its earlier guidance of 13% revenue growth and improving margins based on a strengthening outlook. This changed in July 2012, when the company issued a profit warning. 

Burkhalter issued a cautions statement about the company’s prospects for the remainder of 2012.

”As we announced in our July 3 press release, our revenues were impacted by the rearing up of the economic uncertainties, predominantly in EMEA and the Americas. Events in the Eurozone, as well as the uncertain outlook of the US economy, which appears to be recovering more slowly than expected, have again started to dominate the investment outlook of the media industry.  Though none of the running projects have been cancelled or delayed, we experienced a noticeable cutback in both new tenders and orders.”

“Considering the impact of economic uncertainties on the business climate, it is too early to provide accurate quantitative guidance for the remainder of this year. As we shared in our press release of July 03, we anticipate that we will not be able to match the guidance for the full year that we published previously, as we do not expect that market conditions will improve materially during the second half of the year.  However, assuming the business climate does not deteriorate significantly from its current state, we expect that our strict control of OPEX will allow us to maintain our margins roughly at the current levels.  Going forward, we will continue on a path of financial prudence and discipline, while at the same time working on further improving our offering to the broadcast and general media industries, who continue to look for technology that will help them reach their financial goals and strategic objectives.  As we are in very robust financial health, we are in a position where we can continue to develop our leadership in the digital media industry, which is a great position to be in and one that gets recognized by the market.”

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Related Content:

Press Release: Vizrt Reports H1 and Q2 2012 Results – Margins protected despite lower than expected Q2 revenues

Vizrt Warns of Lower Revenue Expectations for 2012 Due to Weakness in EMEA and Americas

Vizrt  Q2 2012 Analyst Presentation  http://dcft.co/O81uC9

Previous Quarter: Vizrt Revenue Increases 13% in Q1 2012 Driven by Strong Performance in Graphics and MAM

Previous Year: Vizrt Q2 2011 Profit Triples as Revenue Jumps 32 Percent

More Broadcast Vendor M&A: Vizrt Completes Acquisition of LiberoVision

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Vizrt Revenue Increases 13% in Q1 2012 Driven by Strong Performance in Graphics and MAM

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
May 10 2012

Vizrt reported that its revenue for the first quarter of 2012 was $31.7m, an increase of 13% versus the same period a year ago, and down 5% versus the previous quarter.  

In its earnings announcement, the company pointed out that the first quarter is typically lower than Q4 (which was a record for Vizrt), but  reiterated its previously issued guidance of 13% revenue growth and improving margins for the full year 2012.

Gross margins for the first quarter of 2012 were 67%, up from 62% last year and down from 69% last quarter.  The company attributed the stronger gross margin performance to improved margins from its Media Asset Management (MAM) product line. Vizrt disclosed that its MAM order book is now 80% higher than it was at the same time last year.

Operating expenses for the quarter were $17.1m, up 13% versus last year due to increased headcount and the acquisition of LiberoVision last July.

EBITDA was $5.6m for the quarter, an increase of 40% versus last year and a decrease of 37% versus last quarter.   The EBITDA margin for the quarter was 18% versus and EBITDA margin of 14% last year.

Net profit for the quarter was $2.1m, flat with the same period a year ago, and down from $6m last quarter.

Product Line Results for the Quarter:

  • Broadcast Graphics (BG) accounted for $24.9m during the quarter (79% of total revenue), an increase of 24% versus last year and a decline of 7% versus last quarter.  The BG order backlog was $25m as of May 8, 2012, up 8% versus last year.
  • Media Asset Management (MAM) revenue in the quarter was $5.2m (16% of total revenue), up 8% versus the same period a year ago, and up 13% versus last quarter. The MAM order backlog was $21m as of May 8, 2012, up 80% versus last year.
  • Online & Mobile (OLM) revenue in the quarter was $1.6m (5% of total revenue), down 38% versus last year and down 12% versus last quarter.  The OLM order backlog was $4m as of May 8, 2012, down 19% versus last year.

 

Geographic Performance for the Quarter:

  • Revenue from EMEA was $17.9m (56% of total revenue), up 20% versus the same period last year and down 4% versus last quarter
  • Americas revenue was $7.1m (22% of total revenue), up 9% versus last year, and down 9% versus last quarter
  • APAC revenue was $7.1 (20% of total revenue), up 2% versus last year, and down 6% versus last quarter

 

The company ended the quarter with 583 employees and $68.6m in cash.

Company CEO Martin Burkhalter said he was pleased with the results, which were in line with the company’s expectations. Burkhalter said that although Q1 is traditionally the weakest quarter of the year, Vizrt managed to record strong improvements, both for revenues and operating results.

 

Business Outlook:

“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,” said Burkhalter.

“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.”

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Related Content:

Press Release: VIZRT Reports Q1 2012 Results – Positive Start to the Year

Vizrt  Q1 2012 Analyst Presentation

Previous year: Vizrt Revenue Up 18 Percent in Q1 2011, CEO Says Company Has Entered Phase of Strong and Stable Growth

Previous Quarter: Vizrt Reports Record Revenue in 2011, Targets 13 Percent Growth in 2012

More Broadcast Vendor M&A: Vizrt Completes Acquisition of LiberoVision

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