Posts Tagged ‘Evertz’

Evertz Announces Record Backlog and Shipments along with C$13.5 million IP Order

Analysis, Broadcaster Financial Results, Quarterly Results | Posted by Josh Stinehour
Sep 19 2016

Evertz announced revenue for the first quarter of its 2017 fiscal year, which ended on July 31, 2016.  Revenue for the quarter was C$87.0 million, up 2.5% versus the same period a year ago, and down 9.7% versus the previous quarter. evertz-logo

The strengthening US dollar contributed a foreign exchange gain of C$6.6 million during the quarter.

Net earnings for the quarter were C$18.6 million (C$0.25 earnings per share), flat versus the first fiscal quarter of 2016, and an increase of 129.6% versus the preceding quarter. The company generated C$19.9 million cash from operations in the quarter.  This compares to cash used by operations of C$7.8 million during the same period last year and cash from operations of C$10.1 million during the previous quarter.

Revenue results for the quarter were below the consensus estimates of equity analysts of C$95.1 million, while earnings results were above the consensus estimates of analysts of C$0.24 per share.

During management’s exchange with analysts, EVP Brian Campbell attributed the lower level of revenue in the quarter to the typical lumpiness of orders along with the stretching of certain orders into future quarters.

The Company said its shipments during August 2016 were C$31 million, and that its purchase order backlog at the end of the quarter was in excess of C$70 million.   The combined shipments and backlog of C$101 million is a record level for Evertz.

The top ten customers in the quarter accounted for 30% of revenue and no customer accounted for an excess of 6% of revenue. Evertz had 104 individual customers each representing over $200,000 of revenue.

Gross margins in the quarter were 57.3%, down slightly from 56.4% last year and also down from 57.1% last quarter.  For the quarter operating margins were 28.5%, compared to 29.9% during the same period last year and 23.9% in the FQ4 2016.

Evertz ended the quarter with C$125.4 million of cash and cash equivalents up slightly from C$123.1 million at the end of last quarter.

Revenue by Geography:

  • Revenue in the US/Canada region was C$52.1 million, an increase of 4.2% versus the same period a year ago, and flat versus the previous quarter. US/Canada sales were 59.9% of total revenue during the quarter, up from 58.9% of revenue during the same period a year ago, and a substantial increase versus the 53% contribution during the preceding quarter.
  • International revenue was C$34.9 million, flat versus the previous year’s result and a decrease of 22.6% when compared to the previous quarter. International sales were 40.1% of total revenue, down from 41.1% last year and 47.0% last quarter.

Operating Expenditures by Function:

  • R&D expenses (before tax credits) in the second quarter were C$17.5 million, an increase of 7.4% versus the same period last year, and an increase of 1.2% versus the previous quarter. R&D expenses were 20.1% of revenue in the quarter, higher on a percentage basis than the 19.2% last year and the 17.9% last quarter.
  • Selling and administrative expenses for the quarter were C$14.9 million, a slight increase of 0.7% versus last year, and a decrease of 8.0% versus the preceding quarter. Selling and administrative expenses represented approximately 17.1% of revenue in the quarter versus 19.2% of revenue during the same period last year, and 17.9% of revenue in the previous quarter.

Management Commentary on Results:

Consistent with earlier quarters, Evertz EVP Brian Campbell attributed the overall performance and combined shipment and order backlog “to the ongoing transition to HD, channel proliferation, the increasing global demand for high-quality video anywhere anytime”.  Also consistent with previous quarters, Mr. Campbell added emphasis on “the growing adoption of Evertz’s IP-based software-defined networking solutions.”

While Evertz declined to provide an update on the number of SDVN deployments (over 50 SDVN installments as of the 2016 NAB Show), the Company did issue a press release on the receipt of a C$13.5 million purchase order for a “state-of-the-art” IP facility for a US customer.  The purchase order includes multiple EXE hyperscale and IPX modular switch cores, IP media gateways, and compression and control solutions.

In responding to a question by Thanos Moschopoulos of BMO Capital Markets on the interest level of cloud for Evertz customers, Mr. Campbell provided commentary on cloud adoption in the media sector.  “It’s very much early days, but it is meaningful” stated Mr. Campbell.  “And Evertz is well down the path in virtualizing the important components for customers to meet to their needs, whether that’s in a public cloud or in a private cloud or hybrid” continued Mr. Campbell.

 

 

Related Content:

Press release on Evertz FY Q1 2017 Results

MD&A on Evertz FY Q1 2017 Results

Financial Statements for Evertz FY Q1 2017

Press Release on “State-of-the-Art” IP Facility Order

 

 

© Devoncroft Partners 2009-2016.  All Rights Reserved.

 

 

2016 Big Broadcast Survey (BBS) Reports Now Available

broadcast technology market research, Broadcast Vendor Brand Research, market research | Posted by Josh Stinehour
Jul 21 2016

The 2016 Big Broadcast Survey (BBS) Reports are now available.

We have been publishing the BBS Reports since 2009.  Each new edition is created through several months of research, including interviews with technology end-users, global surveys of technology decision makers, analysis of the end-user responses, and visualization of the data collected.  Now in its eighth year of publication, the BBS remains the most comprehensive annual study of technology end-users in the global broadcast and media technology industry.  Nearly 10,000 technology professionals in 100+ countries participate in the BBS each year, making it the largest market study of the media technology industry.

Based on feedback from technology vendors, media companies, and investors, we have updated the vendors, product categories, and market trends profiled in the 2016 BBS to better align with recent market developments.

Select updates include the global tracking of IP Standard Adoption, a product level review of the 4K upgrade cycle, and planned usage of programmatic advertising exchanges.

The continual updates over the past eight years have helped the BBS reports remain a critical reference for industry executives to improve strategic decision-making, customer engagement, marketing strategy, product planning, and sales execution.  In addition to technology vendor and service provider strategic planning, BBS reports are also used frequently for M&A and investment activities by both buyers and sellers.

Three types of 2016 BBS reports are available:

  • 2016 BBS Global Brand Reports: provides deep insight into how each more than 100 broadcast technology suppliers (see full list below) are perceived by market participants, along with comprehensive benchmarking of broadcast technology vendors on a wide variety of metrics
  • 2016 BBS Product Reports: provide detailed information from buyers, specifiers, and users of broadcast technology products in 32 separate categories (see full list below)
  • 2016 BBS Global Market Report: provides detailed information about industry trends, major projects being planned, products being evaluated for purchase, current and future plant infrastructure, broadcast technology budgets, and planned deployment of new technologies including 4K, HEVC compression, and IP-based technology infrastructure

 

For additional information on the 2016 BBS report, please call or email me.

As is Devoncroft’s custom, we will publish highlights from this year’s BBS reports on the Devoncroft website.  These articles are posted on a semi-regular basis, so please check back often.

To receive posts when published, please enter register with your email in the box in the upper right-hand corner of the page.

The below table of logos (in alphabetical order) lists the technology vendor brands covered in the 2016 BBS.

2016-BBS-Logos

 

Technology Product Categories & Vendor Brands Covered in the 2016 BBS, by Application Area

 

Acquisition & Production:

ENG Cameras

Canon, Hitachi, Ikegami, JVC, Panasonic, Sony

Large Format Single Sensor Cameras

ARRI, Blackmagic Design, Canon, Red, Sony

Production Switchers

Blackmagic Design, For-A, Grass Valley, NewTek, Panasonic, Ross Video, SAM, Sony

Studio / System Cameras

Grass Valley, Hitachi, Ikegami, JVC, Panasonic, Sony

 

 

Post Production: 

Graphics & Branding

Adobe, Autodesk, Avid/Orad, ChyronHego, Evertz, Grass Valley, Imagine Communications, Ross Video, Vizrt

Video Editing

Adobe, Apple, Avid, Blackmagic Design, EVS, Grass Valley, Imagine Communications, Sony

 

 

Content Communications and Infrastructure:

Bonded Cellular

Dejero, LiveU, Teradek, TVU

Routing Switchers

Blackmagic Design, Evertz, Grass Valley, Imagine Communications, Ross Video, SAM, Utah Scientific

Signal Processing / Interfacing / Modular

Aja Video, Axon, Blackmagic Design, Evertz, For-A, Grass Valley, Imagine Communication, Ross Video, SAM

Video Transport

Aspera, Cisco, Ericsson, Evertz, Harmonic, Imagine Communications, Lawo, Media Links, Net Insight, Nevion, Riedel, Signiant

 

 

Storage:

High Performance Shared Storage:

Avid, Harmonic, Hitachi, HPE, Isilon Systems/EMC, NetApp, Quantum

Playout / Transmission Servers

Avid, EVS, Grass Valley, Harmonic, Imagine Communications, Ross Video

Production Servers

EVS, Grass Valley, Harmonic, Rohde & Schwarz, SAM

 

 

Audio:

Audio Consoles

Avid, Calrec, Lawo, Salzbrenner Stagetec, Solid State Logic (SSL), Soundcraft, Studer, Wheatstone, Yamaha

Audio Processing & Monitoring

Adobe, Avid, Dolby, Linear Acoustic, RTW, TSL, Wohler

Intercom / Talkback

Clear-Com, Riedel, RTS Intercom Systems, Trilogy

Microphones

AKG, Audio-Technica, beyerdynamic, Electro Voice, Marshall Electronics, Neumann, Schoeps, Sennheiser, Shure, Sony

Monitors (speakers)

Adam, Avid, Focal, Genelec, JBL, KRK Systems, Mackie, Neumann, PMC,

 

 

System Automation and Control:

Broadcast Business Management Systems

arvato/S4M, Imagine Communications, MediageniX, MSA Focus, SintecMedia, Wide Orbit

Archive & Archive Management

Masstech, Oracle/Front Porch Digital, Quantum, SGL, XenData

Media Asset Management

arvato/S4M, Avid, Dalet, EVS, Imagine Communications, Prime Focus Technologies, Vizrt, VSN

Playout Automation

Grass Valley, Imagine Communications, Pebble Beach, Playbox, Snell

Workflow Orchestration / BPM

Aspera, Avid, Imagine Communications, IBM, Sony, Telestream

 

 

Playout and Delivery:

Encoding / Transcoding

Arris, ateme, Cisco, Dalet/AmberFin, Elemental Technologies, Ericsson, Harmonic, Imagine Communications, Telestream

Integrated Playout (Channel in a Box)

Evertz, Grass Valley, Harmonic, Imagine Communications, Pebble Beach, Playbox, SAM

On-line / Streaming Video Delivery Platforms

Brightcove, Kaltura, Neulion, Ooyala, Piksel

Transmitters

GatesAir, Hitachi, NEC, Plisch, Rohde & Schwarz, Screen Service, Toshiba

 

 

Test, Quality Control and Monitoring:

Multiviewers

Avitech, Axon, Evertz, For-A, Grass Valley, Imagine Communications

Test & Measurement

Imagine Communications, IneoQuest, Leader, Phabrix, Rohde & Schwarz, Tektronix

 

 

© Devoncroft Partners 2009 – 2016. All Rights Reserved.

 

 

Evertz Reports Record Annual Revenue, Highlights SDVN Momentum

Analysis, Broadcast technology vendor financials, Quarterly Results | Posted by Josh Stinehour
Jun 10 2016

Evertz reported results for its fiscal fourth quarter and year ending April 30, 2016.  For the full year Evertz achieved record annual revenue of C$381.6 million, an increase of 5% versus fiscal 2015 revenue.  evertz-logo

Net earnings for the fiscal year were C$70.9 million (C$0.94 per share), an 8% increase against fiscal 2015.  Evertz generated cash flow of C$91.2 million from operations during 2016, an increase of 68% over 2015.

Gross margin percentage for fiscal 2016 was 57%, which is similar to the 56.7% recorded during fiscal 2015.  Operating margins for the 2016 year were 25.2%, a slight improvement over the 24.3% operating margins in 2015.

2016 annual revenue from the US/Canada region was $216.0 million, up 6% when compared to 2015.  US/Canada represented 56.6% of total revenue in 2016, approximately flat versus the 56.2% in 2015.

International revenue for full year 2016 was $165.5 million, a 3.9% increase compared to 2015.  As a percentage of total revenue, International represented 43.3% of total sales in 2016, which compares to 43.7% of total revenue in 2015.

The top ten customers for the year accounted for 29% of total revenue, and no customer accounted for an excess of 7% of revenue.  During the year, Evertz had 311 individual customers each representing over C$200,000 of revenue.

The Company ended the year with C$123.1 million of cash and cash equivalents down slightly from C$129.9 million at January 31, 2016.

 

Q4 FY2016 Results:

Evertz revenue for the fourth quarter of its 2016 fiscal year was C$96.4 million, up 5% versus the same quarter a year earlier, and down 3.3% versus the previous quarter ending January 31, 2016.

Revenue for the quarter was in line with the consensus analyst estimates for revenue of C$96.7 million.

The Company said that its shipments during May 2016 were C$21 million, and that its purchase order backlog at the end of the quarter was in excess of C$69 million.  May 2016 shipments represented a 28% year-over-year decline versus May 2015.  Management attributed the weakness to the timing of customer orders and fewer shipping days in May.

Net earnings for the quarter were C$8.1 million (C$0.11 earnings per share), a decrease of 26.6% versus the fourth fiscal quarter of 2015, and a decrease of 66% versus the preceding quarter.  Evertz generated cash from operations of C$10.1 million for the quarter, which compares favorably to the C$1.6 million used by operations during the fourth quarter of fiscal 2015.  The operating results included an unfavorable C$11.8 million foreign exchange loss during the quarter.

Revenue in quarter for the US/Canada region was C$51.2 million, up 2.4% versus the same period a year ago, and down 4.4% versus the previous quarter. US/Canada sales were 53% of total revenue during the quarter, down from 54% of revenue during the same period a year ago, and 53.7% of revenue last quarter.

International revenue for the quarter was C$45.1 million, representing a 7.6% increase versus the previous year’s result and a decrease of 2.3% when compared to the previous quarter. International sales were 47% of total revenue in the quarter, up from 45% during the same quarter last year and 46.3% from the preceding quarter.

Gross margins in the quarter were 57.1%, down slightly from 57.3% during the prior year period and equivalent to the 57.1% contribution from the third fiscal quarter of the year.

R&D expenses in the second quarter were C$17.3 million, a decrease of 1.9% versus the same period last year, and flat versus the previous quarter.  R&D expenses were approximately 17.9% of revenue in the quarter, lower on a percentage basis than last year (19.1%) and last quarter (17.3%).

Selling and administrative expenses for the quarter were C$16.2 million, an increase of 4.5% versus last year, and a decrease of 2.4% versus the sequential quarter. Selling and administrative expenses represented 16.8% of revenue in the quarter, the same as the year earlier quarter, and a slight increase versus the 16.6% contribution of revenue in the previous quarter.

On the call with earnings analyst, Evertz EVP Brian Campbell highlighted Evertz’s positive market momentum with its Software Defined Video Networking (SDVN) solutions.  Responding to a question by Robert Young from Canaccord Genuity, Brian Campbell stated, “We have over 50 deployments of SDVN including some of the first of their kind and largest scale.  By virtue of that, it would put us in leadership position.  As you recall as well, we were very early in developing the solutions and advocating software defined networking and also virtualized – whether it be private cloud or public cloud – solutions. So I think we are very well positioned to help our customers that are looking to move in that direction, and to give them great comfort that they’ve got fabulous solutions that they can count on going forward.”

 

 

Related Content:

Press Release on Evertz Q4 FY2016 Results

Evertz MD&A on Q4 FY2016 Results

Evertz Q4 FY2016 Financial Statements

 

 

© Devoncroft Partners 2009-2016.  All Rights Reserved.

 

 

International Sales and IP Adoption Drive Evertz Quarterly Growth

Analysis, Broadcast technology vendor financials, Quarterly Results | Posted by Josh Stinehour
Mar 09 2016

Evertz announced revenue for the third quarter of its 2016 fiscal year was C$99.8 million, up 10% versus the same period a year ago, and down 1.0% versus the previous quarter.evertz-logo

Net earnings for the quarter were C$24.4 million (C$0.32 per share), up 15.1% versus the same quarter last year, and up 24% versus the previous quarter. The company generated C$49.6 million cash from operations in the quarter, up from C$27.5 million cash used last year, and C$23.6 million generated last quarter.

The revenue result (second highest in Evertz history) was slightly above the consensus estimates of equity analysts, who were looking for revenue of $C97.5m.  Consensus earnings expectations for the quarter were C$0.24 per share.

Evertz EVP Brian Campbell attributed the strong performance to ongoing industry technical transition to IP networking and file-based workflow.  Brian Campbell also highlighted the growing adoption of Evertz’s IP-based software-defined networking solutions, compression solutions, and DreamCatcher IP-based replay and production suite.

Revenue in the US/Canada region was C$53.5 million, flat versus the same period a year ago, and down 12.4% versus the previous quarter. US/Canada sales were 53.7% of total revenue during the quarter, down from 59% of revenue during the same period a year ago, and 60.8% of revenue last quarter.

International revenue was C$46.2 million, an increase of 24% versus the same period last year, and up 17.5% versus the previous quarter. International sales were 46.3% of total revenue, up from 41% last year, and 39.2% last quarter.

The top ten customers in the quarter accounted for 36% of revenue (C$35.9 million), and the no customer in the quarter accounted for more than 11% of revenue (C$10.9 million). Altogether Evertz had 78 orders in the quarter that were greater than C$200,000 (the same as last year, and down from 82 last quarter).

Gross margins in the quarter were 57.1%, up from 57.6% last year and up from 57.2% last quarter. Evertz CFO Anthony Gridley reiterated the gross margin performance in the quarter was within the company’s target range of 56% to 60%.

R&D expenses in the second quarter were C$17.2 million, an increase of 8.8% versus the same period last year, and up 6.8% versus the previous quarter.  R&D expenses were approximately 17.2% of revenue in the quarter, higher on a percentage basis than last year (16.1%) and last quarter (16%).

Selling and administrative expenses for the quarter were C$15.1 million, an increase of 2.0% versus last year, and a decrease of 7.9% versus the previous quarter. Selling and administrative expenses represented approximately 15.2% of revenue in the quarter versus 16.3% of revenue during the same period last year, and 16.3% of revenue last quarter.

The company said that its shipments in February 2015 were C$28m, and that its purchase order backlog at the end of the third quarter were in excess of C$60 million, down slightly from the C$66 million figure in the second quarter.  Combination of the shipments and backlog (C$88 million) represents a 5% increase versus the same period last year.

The company ended the quarter with $129.9 million of cash and short term investments up from C$97.5 million at the end of last quarter, a difference of C$32.4m.  Cash generation in the quarter benefited from a C$18.7 million positive impact from changes in non-cash working capital accounts.

Management’s exchange with equity analyst Robert Young from Canaccord Genuity on the earnings call was worth highlighting for its commentary on the current competitive dynamic in the market:

Robert Young (Canaccord): … they (a competitor) also called out the number of IP projects that they booked and the number that they shipped. I was wondering, would you be willing to share a similar metric?

Brian Campbell (Evertz): Thanks, Robert. So in terms of the metric, what is more important for us would be to showcase the on-air installs. We’re quite familiar with the ESPN DC-2 that really launched the industry’s move to IP-based solutions for live production and workflow. And if we just even look to the recent Super Bowl 50, there’s been several industry articles highlighting the fact that the CBS Super truck was there as part of the coverage, or actually, the centerpiece of the coverage. That’s an industry pioneering, one of several that incorporates Evertz Software Defined Video Networking. In fact, it’s an EXE hyperscale, 23-terabit switch in that truck. And in addition, the Levi’s Stadium is a state-of-the-art stadium. It includes Evertz solutions, and for Super Bowl 50, there was an overlay of our Software Defined Video Networking helping to provide the coverage that folks saw at the Super Bowl and also the 4K replay for the in-stadium venue experiences.

 

 

Related Content:

Evertz Q3 2016 MD&A

Evertz Q3 2016 Financial Statements

 

 

© Devoncroft Partners 2009-2016.  All Rights Reserved.

 

 

Evertz Q1 FY 2016 Revenue Down 16 Percent, Management Remains “Cautiously Optimistic on Spending Environment”

Analysis, Broadcast technology vendor financials | Posted by Joe Zaller
Sep 10 2015

evertz-logoEvertz announced revenue for the first quarter of its 2016 fiscal year, which ended on July 31, 2015.  Revenue for the quarter was C$84.9m, down 16% versus the same period a year ago, and down 7.7% versus the previous quarter.

Net earnings for the quarter were C$18.6m ($0.26 earnings per share), an increase of 5.5% versus the first fiscal quarter of 2015, and an increase of 66% versus the preceding quarter. Excluding a significant foreign currency translation gain earning per share were $0.17 for the quarter. The company generated C$7.8m cash from operations in the quarter.  This compares to cash from operations of C$15.3m during the same period last year and C$12.3m during the previous quarter.

Revenue results were below the consensus estimates of equity analysts of $C91.7m.  Earnings results were slightly above the consensus estimates of analysts of earnings of C$0.24 per share.

The company said that its shipments during August 2015 were C$29m, and that its purchase order backlog at the end of the quarter was in excess of C$70m.   The combined shipments and backlog of C$99m is a record level for Evertz.

During management’s exchange with analysis, EVP Brian Campbell attributed this record level to expected orders not shipping in the quarter and to the nature of some of the orders stretching into future quarters including certain managed services commitments for disaster recovery.  Mr. Campbell noted the large IRD project mentioned on earlier calls was a national deployments, so is requiring a staged deployment at multiple locations.

Consistent with earlier quarters, Evertz EVP Brian Campbell attributed the overall performance “to the ongoing transition to HD, channel proliferation, the increasing global demand for high-quality video anywhere anytime, to worldwide demand for Evertz’s comprehensive product portfolio”.  Mr. Campbell added further color citing the “the growing adoption of Evertz IP-based Software Defined Networking solutions, our state-of-the-art DreamCatcher replay and Evertz IRD compression solutions.”

Revenue in the US/Canada region was C$50m, down 10% versus the same period a year ago, and flat versus the previous quarter. US/Canada sales were 59% of total revenue during the quarter, up from 57% of revenue during the same period a year ago, and 54% of revenue last quarter.

International revenue was C$34.9m, representing a 17.8% decline versus the previous year’s result and a decrease of 16.7% when compared to the previous quarter. International sales were 41% of total revenue, down from 43% last year and 46% last quarter.

The top ten customers in the quarter accounted for 30% of revenue (C$25.5m), and no customer accounted for an excess of 6% of revenue. Evertz had 81 individual customers each representing over $200,000 of revenue.

Gross margins in the quarter were 56.4%, down slightly from 57.0% last year and also down from 57.2% last quarter. Evertz executives reiterated that the gross margin performance in the quarter were within the company’s target range of 56% to 60%.

R&D expenses in the second quarter were C$16.3m, an increase of 3.1% versus the same period last year, and down 4.8% versus the previous quarter.  R&D expenses were approximately 19.1% of revenue in the quarter, higher on a percentage basis than last year (13.6%) and last quarter (15.7%) due to lower revenue.

Selling and administrative expenses for the quarter were C$14.8, an increase of 10.4% versus last year, and a decrease of 4.5% versus the sequential quarter. Selling and administrative expenses represented approximately 17.4% of revenue in the quarter versus 15.5% of revenue during the same period last year, and 16.8% of revenue in the previous quarter.

The company ended the quarter with $97.1m of cash and cash equivalents up slightly from C$100.7 at the end of last quarter.

Management’s exchange with equity analyst Thanos Moschopoulos from BMO Capital Markets on the call was worth highlighting for its commentary on the current market environment:

Thanos Moschopoulos (BMO): Brian, can you comment on the current spending environment, and how that’s changed, if at all, relative to last quarter? And also, how do you expect the spending environment to look going forward?

Brian Campbell (Evertz): Again, we’re cautiously optimistic on the spending environment. When you do take a look at this last quarter and the backlog and shipments that we’ve got going into Q2 of 2016, we’ve got — we had a quite strong order intake. So we’re feeling cautiously optimistic about the broad spending environment and very confident in our product positioning with the Software Defined Video Networking, the state-of-the art conventional broadcast infrastructure equipment we’ve got; and the DreamCatcher slow-motion sports replay. So those products are both winning new business for us and are also pulling along other of our products as well, too.

Thanos Moschopoulos (BMO): And so the case that you’re gaining share in a stagnant environment or putting aside the competitiveness of your products, is the actual underlying environment showing any improvement at all?

Brian Campbell (Evertz): That’s hard to tell. On a quarter-to-quarter basis, we only — we’ve got limited visibility, there are only a small handful of public companies in our sector. So we’re looking at the opportunities in front of us, and we have been winning marquee installations, designing, delivering and deploying Software Defined Video Networking. And I haven’t seen any other competitors deliver anything in scale.

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© Devoncroft Partners 2009-2015.  All Rights Reserved.

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2015 Big Broadcast Survey (BBS) Reports Now Available

broadcast technology market research | Posted by Joe Zaller
Aug 04 2015

The 2015 Big Broadcast Survey (BBS) Reports have now been published and are available from Devoncroft Partners.

We have been publishing the BBS Reports since 2009.  Each new edition is created through several months of research, including interviews with technology end-users, global surveys of technology decision makers, analysis of the end-user responses, and visualization of the data collected.  Now in its seventh year of publication, the BBS remains the most comprehensive annual study of technology end-users in the global broadcast and media technology industry.  Nearly 10,000 technology professionals in 100+ countries participated in the 2015 BBS, making it once again the largest market study of the media technology industry.

Based on feedback from technology vendors, media companies, and investors, we have updated the vendors, product categories, and market trends profiled in the 2015 BBS to better align with recent market developments.

These updates help ensure the BBS reports remains a critical reference for industry executives to improve strategic decision-making, customer engagement, marketing strategy, product planning, and sales execution.  In addition to technology vendor and service provider strategic planning, BBS reports are also used frequently for M&A and investment activities by both buyers and sellers.

Three types of 2015 BBS reports are available:

  • 2015 BBS Global Brand Reports: provides deep insight into how each more than 100 broadcast technology suppliers (see full list below) are perceived by market participants, along with comprehensive benchmarking of broadcast technology vendors on a wide variety of metrics

 

  • 2015 BBS Product Reports: provide detailed information from buyers, specifiers, and users of broadcast technology products in 30 separate categories (see full list below)

 

  • 2015 BBS Global Market Report: provides detailed information about industry trends, major projects being planned, products being evaluated for purchase, current and future plant infrastructure, broadcast technology budgets, and planned deployment of new technologies including 4K, HEVC compression, and IP-based technology infrastructure

 

For additional information on the 2015 BBS report, please email us.

As is Devoncroft’s custom, we will publish selected highlights from this year’s BBS reports on the Devoncroft website.  These articles are posted on a semi-regular basis, so please check back often.

To receive posts when published, please enter register with your email in the box in the upper right-hand corner of the page.

The tables below list the  technology vendor brands and product categories covered in the 2015 BBS.

 

All Brands Covered in 2015 Big Broadcast Survey (BBS)


Product Categories Covered in the 2015 Big Broadcast Survey

Technology Products & Vendor Brands Covered in the 2015 BBS, by Application Area

 

Acquisition & Production:

Camera Lenses

Angenieux, Canon, Fujinon

 

ENG Cameras

Canon, Hitachi, Ikegami, JVC, Panasonic, Sony

 

Large Format Single Sensor Cameras

ARRI, Blackmagic Design, Canon, Red Digital Cinema, Sony

 

Production Switchers

Blackmagic Design, Broadcast Pix, For-A, Grass Valley, NewTek, Panasonic, Ross Video, Snell, Sony

 

Studio/System Cameras

Grass Valley, Hitachi, Ikegami, JVC, Panasonic, Sony

 

 

Post Production:

 

Graphics & Branding

Adobe, Autodesk, Avid, ChyronHego, Evertz, Grass Valley, Imagine Communications, Orad, Pixel Power, Ross Video, Vizrt

 

Transcoding / Streaming

Dalet/AmberFin, Elemental Technologies, Envivio, Harmonic, Imagine Communications, Telestream

 

Video Editing

Adobe, Apple, Avid, EVS, Grass Valley, Imagine Communications, Sony

 

Infrastructure:

Bonded Cellular

Dejero, LiveU, Teradek, TVU, Vislink

 

Routing Switchers

Blackmagic Design, Evertz, Grass Valley, Imagine Communications, Nevion, Pesa, Ross Video, Snell, Utah Scientific

 

Signal Processing / Interfacing / Modular

Aja Video, Axon, Blackmagic Design, Evertz, For-A, Grass Valley, Imagine Communication, Ross Video, Snell

 

Video Transport

Arris, Aspera, Cisco, Ericsson, Evertz, Harmonic, Imagine Communications, Media Links, Net Insight, Nevion, Riedel, Signiant

 

 

Audio:

Audio Consoles

Avid, Calrec, Lawo, Salzbrenner Stagetec, Solid State Logic (SSL), Soundcraft, Studer, Wheatstone, Yamaha

 

Audio Processing & Monitoring

Adobe, Avid, Dolby, Linear Acoustic, RTW, TSL, Wohler

 

Intercom / Talkback

Clear-Com, Riedel, RTS Intercom Systems, Trilogy

 

Microphones

AKG, Audio-Technica, beyerdynamic, Electro Voice, Marshall Electronics, Neumann, Schoeps, Sennheiser, Shure, Sony

 

Monitors (speakers)

Adam, Avid, Focal, Genelec, JBL, KRK Systems, Mackie, Neumann, PMC,

 

 

Storage:

High Performance Shared Storage:

Avid, Harmonic, HP, IBM, Isilon Systems/EMC, NetApp, Quantum

 

Playout / Transmission Servers

Avid, EVS, Grass Valley, Harmonic, Imagine Communications, Ross Video

 

Production Servers

Avid, EVS, Grass Valley, Harmonic, Quantel

 

 

System Automation and Control:

Broadcast Business Management Systems

arvato/S4M, Imagine Communications, MediageniX, MSA Focus, SintecMedia/Pilat Media, VSN, Wide Orbit

 

Archive & Archive Management

ASG/Atempo, Masstech, Oracle/Front Porch Digital, Quantum, SGL, XenData

 

Playout Automation

Grass Valley, Imagine Communications, Pebble Beach, Playbox, Snell

 

Workflow / Asset Management

arvato/S4M, Avid, Dalet/Amberfin, EVS, Imagine Communications, Sony, Vizrt, VSN

 

 

Playout and Delivery:

Integrated Playout (Channel in a Box)

Evertz, Grass Valley, Harmonic, Imagine Communications, Pebble Beach, Playbox, Snell, Thomson Video Networks

 

On-line / Streaming Video Delivery Platforms

Brightcove, Kaltura, Ooyala, Piksel

 

Transmission Encoders

Arris, ATEME, Cisco, Elemental Technologies, Envivio, Ericsson, Harmonic, Imagine Communications, Thomson Video Networks

 

Transmitters

GatesAir, Hitachi, NEC, Plisch, Rohde & Schwarz, Screen Service, Toshiba

 

 

Test, Quality Control and Monitoring:

 

Multiviewers

Avitech, Axon, Evertz, For-A, Grass Valley, Imagine Communications

 

Test & Measurement

Imagine Communications, IneoQuest, Leader, Phabrix, Rohde & Schwarz, Tektronix

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© Devoncroft Partners 2009 – 2015. All Rights Reserved.

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Evertz Revenue Declines 3 Percent in Q3 FY 2015, Cites New Wins in Tough Market

Broadcaster Financial Results, Quarterly Results | Posted by Joe Zaller
Mar 05 2015

evertz-logo

Evertz announced that revenue for the third quarter of its 2015 fiscal year was C$90.7m, down 3% versus the same period a year ago, and up 9.5% versus the previous quarter.

Net earnings for the third quarter were C$21.2m (C$0.28 per share), down approximately 1% versus the same quarter last year, and up 47.9% versus the previous quarter.

The company generated C$27.5m cash from operations in the quarter, up from C$24.4m, last year, and C$17.5m last quarter.

The results (which were the fourth highest sales quarter in the history of the company), were in line with the consensus estimates of equity analysts.

Evertz EVP Brian Campbell said that the company’s revenue in the quarter was well-diversified, with the top 10 customers accounting for approximately 38% of sales.  The company had 72 orders of more than C$200,000 during the quarter (versus 78 last year, and 71 last quarter), and no single customer represented more than 7% (C$6.35m) of revenue.

According to Campbell, the company’s product mix profile during the quarter was “very consistent with the last few quarters,” specifically citing success with its EXE and IPX IP routing products, the DreamCatcher replay system, video compression products, and IRDs.  Campbell said that these new product families pull through traditional processing and infrastructure equipment with them.”

As evidence of this pull-through effect, Campbell highlighted how the “recent adoption of Evertz new Integrated Receiver/Decoder technology by a leading US national broadcast network customer, resulted in the purchase order of over C$10m” for Evertz IRDs, compression products, infrastructure products, and monitoring & control solutions.

Looking specifically at IP routers, Campbell said that although Evertz has not announced many wins for its EXE IP-based router (which it also calls SDVN), the company continues to have very good success with the EXE at its 46 terabit size, and has recently started to gain traction in the mobile production community with a newly introduced half-rack version of the EXE, which has a throughput capacity of 23 terabit per seconds.  Campbell added that the company currently has “in excess of 30 customers” for the EXE and IPX IP-based router products, and customer demand for these products remains “very good,” particularly with sports trucks, where the company is winning new business.

Revenue in the US/Canada region was C$53.6m, down 2.5% versus the same period a year ago, and up 18.1% versus the previous quarter. US/Canada sales were 59.1% of total revenue during the quarter, flat with the same period a year ago, and up from 54.7% of revenue last quarter. Evertz does not provide details of currency adjusted trading, but one analyst estimated that revenue in the US/Canada region was likely down 10% on a constant currency basis.

International revenue was C$37.2m, down 2.5% versus the same period a year ago, and down 1% versus the previous quarter. International sales were 41% of total revenue, flat with last year and down from C$45.2m last quarter.

Commenting on the US versus international results, Campbell said Evertz was “seeing good strength in the Canada/US region,” but internationally “there is a fair bit of geopolitical and economic instability,  so whether that’s Russian, Ukraine, parts of the Middle East or elsewhere, we are in a fairly challenging global economic market.”

Gross margins in the quarter were 56.2%, down from 57.6% last year and flat with the previous quarter. Evertz executives said that the gross margin performance in the quarter were within the company’s target range of 56% to 60%.

On the earnings call, RBC Capital analyst Steve Arthur asked why the company’s gross margins are “stubbornly at the lower end of your traditional range,” and what it will take to move gross margins “up towards the middle part of the 56 to 60 kind of range.” Evertz CFO Anthony Gridley said that gross margins in the quarter were driven by product mix, and that gross margins vary between geographies.  Gridley also said that “some of the larger scale projects can sometimes have lower margins, and this this quarter, we had some positives from currency, but they were offset by some few lower margin deals,” resulting in the 56% level.

R&D expenses in the third quarter were C$15.8m, an increase of 4.8% versus the same period last year, and up 4.3% versus the previous quarter.  R&D expenses were approximately 17.4% of revenue in the quarter, up from 16.1% last year, down from 18.2% last quarter when revenue was slightly lower.

Selling, general and administrative expenses for the quarter were C$16.4m, down 5.3% versus the same quarter last year, and essentially flat with the previous quarter. SG&A expenses represented approximately 18.1% of revenue in the quarter versus 18.6% of revenue during the same period last year, and 19.8% of revenue last quarter.

The company said that its shipments in February 2015 were C$19m, and that its purchase order backlog at the end of the third quarter of fiscal 2014 was in excess of C$65m. The combined C$84m total backlog in shipments represents a 24% year-over-year increase.

Evertz ended the quarter with C$103.3m of cash and short term investments, up from C$90.4 at the end of last quarter.

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Related Content:

Press Release: Evertz Technologies Reports Results for the Third Quarter Ended January 31, 2015

Previous Year: Evertz Q3 FY 2014 Revenue Jumps 30 Percent on Big Deals in North America

Previous Quarter: Evertz Revenue Increases 2 Percent in Q2 FY 2015, Misses Analyst Estimates

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Evertz Revenue Increases 2 Percent in Q2 FY 2015, Misses Analyst Estimates

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Dec 04 2014

Evertz announced revenue for its second fiscal quarter of 2015 (ending October 31, 2014) of C$82.9 million, an increase of 2% versus the same quarter in 2014 and down 15% from the previous quarter.

Net earnings for the quarter were C$14.3 million ($0.19 earnings per share), a decline of approximately 8% against the 2014 second quarter performance and down 27% versus the preceding quarter.  It is important to note the revenue result from the first quarter of 2015 was the highest in Evertz’s corporate history.

The results for the quarter were lower than the consensus estimate of equity analysts, who were expecting revenue of C$88m and earnings of C$0.23 per share.

The revenue miss was principally attributable to the softness in international markets.

Revenue in the US/Canada region was C$45.4m, up 19% versus the same period a year ago, and up 18.2% versus the previous quarter. US/Canada sales were 55% of total revenue during the quarter, up from 47% of revenue during the same period a year ago, and 57% of revenue last quarter.

International revenue was C$37.5m, representing a 13% decline versus the previous year’s result and a slight decrease of 11.8% when compared to the previous quarter. International sales were 45% of total revenue, down from 53% last year and 43% last quarter.

Gross margins in the quarter were 56.2%, down slightly from 57.4% last year and up from 57.0% last quarter. This result remained in Evertz’s previously communicated target gross margin range of 56% to 60%.

R&D expenses in the second quarter were C$15.1m, an increase of 3% versus the same period last year, and down 4.5% versus the previous quarter.  R&D expenses were approximately 18.2% of revenue in the quarter, higher on a percentage basis of revenue than last year (17.9%) and last quarter (13.6%) due to higher revenue.

Selling and administrative expenses for the quarter were C$15.1m, an increase of 10% versus last year, and an increase of 12.6% versus the previous quarter. Selling and administrative expenses represented approximately 18.2% of revenue in the quarter versus 16.8% of revenue during the same period last year, and 15.5% of revenue last quarter.

One interesting non-financial note from the quarter was the disclosure that Evertz has signed deals with more than thirty customers for its IP routing products, including its new 46 TB/s EXE router.

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Evertz Reports Record Revenues for First Quarter of New Fiscal Year

broadcast industry technology trends, Broadcast technology vendor financials, Broadcast Vendor M&A, Quarterly Results | Posted by Joe Zaller
Sep 09 2014

Evertz announced record revenue for the first quarter of its 2015 fiscal year of C$98.0m, up 54% versus the same period a year ago (a poor quarter for the company), and up 12.5% versus the previous quarter.

Net earnings for the quarter were C$19.7m ($0.27 earnings per share), an increase of 61.3% versus the first fiscal quarter of 2014, and an increase of 33% versus the preceding quarter. The company generated C$15.3m cash from operations in the quarter.  This compares to cash from operations of C$2.7m during the same period last year and negative C$1.3m during the previous quarter.

The revenue result is the highest in Evertz’s corporate history. It came in well above the consensus estimates of equity analysts, which were expecting revenue of $C91.7m and earnings of C$0.24 per share.

Evertz EVP Brian Campbell attributed the strong performance “to the ongoing transition to HD, channel proliferation, the increasing global demand for high-quality video anywhere anytime, to worldwide demand for Evertz’s comprehensive product offering with our optimized workflow solutions providing compelling value to customers and to the growing adoption of Evertz’s state of the art sports replay and our software defined video networking solutions”

Revenue in the US/Canada region was C$55.5m, up 55% versus the same period a year ago, and up 28.8% versus the previous quarter. US/Canada sales were 57% of total revenue during the quarter, up from 56% of revenue during the same period a year ago, and 49.5% of revenue last quarter.

International revenue was C$42.5m, representing 52% growth versus the previous year’s result and a slight decrease of 3.7% when compared to the previous quarter. International sales were 43% of total revenue, down from 44% last year and 50.5% last quarter.

The top ten customers in the quarter accounted for 31% of revenue (C$17.2m), and the largest customer in the quarter accounted for 6% of revenue (C$3.3m).

During the first quarter of fiscal 2015, Evertz had 86 individual customers each representing over $200,000 of revenue.

Gross margins in the quarter were 57.0%, down slightly from 57.5% last year and up from 56.3% last quarter. Evertz executives said that the gross margin performance in the quarter were within the company’s target range of 56% to 60%.  Consistent with recent calls, equity analysts asked both why the company’s gross margins were not increasing more rapidly with revenue growth, and what is required for gross margins to move to the high-end of Management’s target range.

While Management cited gross margins drivers of product mix, geographic mix, and the discounting of volume orders, the principal factor was the competitive pricing environment.  “We’ve been in a quite a competitive pricing environment for the last year, so there hasn’t been any significant change to that.” noted Campbell.

R&D expenses in the second quarter were C$15.8m, an increase of 18% versus the same period last year, and down 2.8% versus the previous quarter.  R&D expenses were approximately 13.6% of revenue in the quarter, lower on a percentage basis than last year (16.6%) and last quarter (15.8%) due to higher revenue.

Selling and administrative expenses for the quarter were C$13.4m, an increase of 16% versus last year, and a decrease of 18.8% versus the previous quarter. Selling and administrative expenses represented approximately 15.5% of revenue in the quarter versus 20.5% of revenue during the same period last year, and 18.9% of revenue last quarter.

The company said that its shipments in August 2014 were C$25m, and that its purchase order backlog at the end of the quarter was in excess of C$46m.

The company ended the quarter with $103.4m of cash and short term investments up slightly from C$102.0 at the end of last quarter.

There was some additional commentary provided during management’s exchange with equity analysts:

Thanos Moschopoulos, BMO: “…With respect to the EXE and the overall IP product platform, is there any incremental color you can provide in terms of the types of customers you are seeing adopt that solution?”

Brian Campbell, Evertz: “…We are definitely seeing good interest and traction within our broadcast and new media customer set”

Rob Young, Canaccord Genuity: “…A lot of your competitors have been going through large M&A and are you seeing any beneficial environment for Evertz while some of these large competitors change their strategy?”

Brian Campbell, Evertz: “Yes we have picked up market share from our perspective.  We have very solid year-over-year growth and I don’t know that any of the competitors have had anything similar to that although some of them are no longer public entities where you can see the numbers. So I would say that yes we have definitely benefited and as a consequence perhaps of their activities but also directly resulting from the very significant, sustained investments we’ve made in new products and innovation.

Campbell concluded the call by emphasizing several points, “Our commitment to R&D continues to deliver innovative solutions enabling our customers to migrate to IP and IT based solutions to address the increasing complexities of our industry and to implement multiscreen TV everywhere anytime solutions.  Our customers have confidence in Evertz’s financial stability and our competitive position as one of the largest pure-players in the broadcast technology sector.”

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Related Content:

Press Release: Evertz Technologies Limited Revenue for the three months ended July 31, 2014

Evertz Revenue Declines 33 Percent in Q1 Fiscal 2014

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© Devoncroft partners 2009-2014. All Rights Reserved.

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2014 Big Broadcast Survey (BBS) Reports Now Available

broadcast industry technology trends, broadcast technology market research, Broadcast Vendor Brand Research, market research, Top Broadcast Vendor Brands | Posted by Joe Zaller
Jul 15 2014

After months of data collection, analysis, and visualization, we have now completed work on the 2014 Big Broadcast Survey (BBS). Reports from this study have now been published and are available from Devoncroft Partners.

If you’re not familiar with the BBS, it’s the most comprehensive annual study of technology end-users in the global broadcast industry. Nearly 10,000 broadcast professionals in 100+ countries participated in the 2014 BBS, making it once again the largest market study of the broadcast industry.

BBS reports have been designed to help readers improve their strategic decision-making, customer engagement, marketing strategy, product planning, and sales execution.  BBS reports are also used frequently for M&A-related activities by both buyers and sellers.

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Three types of 2014 BBS reports are available:

  • 2014 BBS Global Brand Reports:  provides deep insight into how each more than 100 broadcast technology suppliers (see full list below) are perceived by market participants, along with comprehensive benchmarking of broadcast technology vendors on a wide variety of metrics.

 

  • 2014 BBS Product Reports:  provide detailed information from buyers, specifiers, and users of broadcast technology products in 31 separate categories (see full list below)

 

  • 2014 BBS Global Market Report: provides detailed information about industry trends, major projects being planned, products being evaluated for purchase, current and future plant infrastructure, broadcast technology CapEx budgets, and planned deployment of new technologies including 4K, Connected TV, and Social TV.

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If you would like information about these reports and how they can help your business, please get in touch.

 

In addition to these paid-for reports, we will also be publishing highlights from the 2014 BBS on the Devoncroft website.  These articles will be posted on a semi-regular basis, so please check back often.

To receive posts when they are published, just enter your email in the box in the upper right-hand corner of the page.

 

The tables below show the product categories and broadcast technology vendor brands covered in the 2014 BBS.

 

 Product Categories Covered in the 2014 BBS:

2014 BBS -- Product Categories Covered in the 2014 Big Broadcast Survey

 

 

Broadcast Technology Brands Covered in the 2014 BBS:

 

2014 BBS -- All Brands included in 2014 BBS

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.© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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