Posts Tagged ‘Evertz’

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

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Mar 11 2014

Evertz announced that its revenue for the third quarter of its 2014 fiscal year was C$93.2m, up 30% versus the same period a year ago, and up 14.6% versus the previous quarter.

Net earnings for the quarter were C$21.3m (C$0.29 per share), up 61.3% versus the same quarter last year, and up 38% versus the previous quarter. The company generated C$24.4m cash from operations in the quarter, up from C$22m, last year, and C$9.7m last quarter.

The results (which were the second highest sales quarter in the history of the company), were well above the consensus estimates of equity analysts who were looking for revenue of $C80m and earnings of C$0.21 per share.

Evertz EVP Brian Campbell attributed the higher than expected results to improvements in the US/Canada market, the ongoing worldwide transition to HDTV, and strong customer demand for its new products.

Revenue in the US/Canada region was C$55m, up 63% versus the same period a year ago, and up 44.3% versus the previous quarter. US/Canada sales were 59% of total revenue during the quarter, up from 47% of revenue during the same period a year ago, and 47% of revenue last quarter.

International revenue was C$38.2m, essentially flat with last year, and down 11.4% versus the previous quarter. International sales were 41% of total revenue, down from 53% last year and last quarter.

The top ten customers in the quarter accounted for 38% of revenue (C$27.8m), and the largest customer in the quarter accounted for 12% of revenue (C$11.2m). Altogether Evertz had 78 orders in the quarter that were greater than C$200,000 (up from 57 last year, and 68 last quarter).

Unusually for Evertz, which is notoriously tight-lipped about corporate activity and customer wins, Cambell disclosed that the company had shipped a total of C$15m worth of product to two separate customers in the quarter, and specifically mentioned that these orders included the company’s new EXE routing switcher platform and Dreamcatcher video replay system.  Campbell declined to identify the customers by name, saying only that Dreamcatcher had been adopted by a “major sports league” and that the EXE platform had been adopted by “a major sports network.” However, an Evertz executive speaking on the “Professional Networked Media” panel at last month’s HPA Tech Retreat in Indian Wells, California, told the audience that the EXE-VSR router has been deployed by ESPN as part of its new D2 project.

Gross margins in the quarter were 57.6%, up from 56.1% last year and up from 57.4% last quarter. Evertz executives said that the gross margin performance in the quarter were within the company’s target range of 56% to 60%.  This prompted equity analysts on the earnings call to ask, for the second quarter in a row, why the company’s gross margins were not increasing more rapidly given the large percentage increases in quarterly sales.

Campbell attributed the gross margin performance to two factors. Because the company’s top-line growth in the quarter was driven by to big deals, “gross margins were lower than what you may anticipate from increased volumes, because of the large size of the orders, often-times those customers require a volume discount.”   Campbell also said gross margins in the quarter were affected by the order mix.

R&D expenses in the second quarter were C$15.05m, an increase of 15% versus the same period last year, and up 3% versus the previous quarter.  R&D expenses were approximately 16.1% of revenue in the quarter, lower on a percentage basis than last year (18.2%) and last quarter (18%) due to higher revenue.

Selling and administrative expenses for the quarter were C$14.9m, an increase of 9.2% versus last year, and an increase of 9.1% versus the previous quarter. Selling and administrative expenses represented approximately 16.1% of revenue in the quarter versus 18.2% of revenue during the same period last year, and 16.8% of revenue last quarter.

The company said that its shipments in February 2014 were C$25m, and that its purchase order backlog at the end of the third quarter of fiscal 2014 was in excess of C$43m, unchanged from last quarter.

Campbell said that the backlog remained the same despite higher revenue in the quarter because of a large order, which the customer asked to be expedited. Thus it was received and turned into sales during in one quarter, rather than showing up in backlog.

The company ended the quarter with $118.8m of cash and short term investments down from C$208.2 at the end of last quarter, a difference of C$89.4m.  The primary reason for this was the payment of dividends of C$115.8, including a special dividend of $C104m.

Evertz said it expects its annual revenues will continue to outpace the industry growth, and that its gross margin percentages may vary depending on the mix of products sold, the company’s success in winning more complete projects, utilization of manufacturing capacity and the competitiveness of the pricing environment. R&D will continue to be a key focus as the Company invests in new product development.

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Related Content:

Press Release: Evertz Technologies Third Quarter Fiscal 2014 Revenue Up 30%

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

Evertz Revenue Declines 33 Percent in Q1 Fiscal 2014

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Evertz Revenue Declines 33 Percent in Q1 Fiscal 2014

Broadcast technology vendor financials, Quarterly Results | 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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© Devoncroft Partners. All Rights Reserved.

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Evertz Announces 5 Percent Share Buy Back Program

Broadcast technology vendor financials | Posted by Joe Zaller
Aug 21 2013

Evertz said its board of directors has authorized the implementation of a share buyback program under which it will buy back up to 3,700,397 of its common shares, or approximately 5% of its outstanding shares as of August 18, 2013.

The company says it will buy shares at their market price at the time of purchase, and that no director, senior officer or other insider of Evertz currently intends to sell any common shares under this bid.  All shares repurchased via this program will be cancelled.

The program will continue for one year after the first share purchase, or once Evertz has completed the announced share purchases.

In a statement, Evertz said that it believes that “its common shares currently trade in a price range that does not adequately reflect their underlying value based on Evertz business and strong financial position. As a result, depending upon future price movements and other factors, Evertz believes that its outstanding common shares represent an attractive investment and a desirable use of a portion of its corporate funds.”

The new share buyback program supersedes a previous scheme that expired on July 16, 2013.

Evertz posted net earnings of C$65.2m (C$0.88 per share), on revenue of C$316 for its full 2013 fiscal (which ended April 30, 2013).

During fiscal 2013 Evertz repurchased C$4.2m of its capital stock, and issued capital stock pursuant to an option program valued at C$8m.

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Related Content:

Press Release: Evertz Technologies Limited Announces Proposed New Normal Course Issuer Bid

Evertz Announces $9 Million Order From Unnamed International Customer

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

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© Devoncroft Partners 2009 – 2013. All Rights Reserved.

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Ranking Broadcast Technology Vendors Part 3 — The 2013 BBS Global Brand Opinion Leaders League Table

broadcast industry technology trends, broadcast industry trends, broadcast technology market research, Broadcast Vendor Brand Research, market research, Top Broadcast Vendor Brands | Posted by Joe Zaller
Aug 12 2013

This is the seventh in a series of articles about some of the findings from Devoncroft’s 2013 Big Broadcast Survey (BBS), a global study of broadcast industry trends, technology purchasing plans, and benchmarking of broadcast technology vendor brands. Nearly 10,000 broadcast professionals in 100+ countries took part in the 2013 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry. 

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This is the third post in a series of articles about how broadcast technology vendors were ranked and benchmarked on a variety of metrics by the respondents to the 2013 BBS.

The first two posts in this series described the 2013 BBS Overall Brand Opinion League Table, and the 2013 BBS Net Change in Overall Brand Opinion League Table.

These rankings show how the global sample of 2013 BBS respondents rated a variety of broadcast technology vendor brands in terms of their overall opinion of these vendors, and also how their opinions have changed over time.

A large number of brands were listed in the two previous ranking lists. Between these two sets of league tables, a total of 70 broadcast technology vendor brands were listed (out of a total of 151 brands included in the 2013 BBS (the complete list of brands included in the 2013 BBS can be found here).

There were 46 vendors in the in the 2013 BBS Overall Brand Opinion League Table (versus 48 in 2012), and 53 vendors in the 2013 BBS Net Change in Overall Brand Opinion League Table (versus 58 in 2012).

However, the brands in the Overall Opinion and Net Change of Opinion rankings were not always the same.  In fact, out of the 70 broadcast technology vendor brands that were listed in the previous two rankings, just 29 brands were listed in both sets of rankings, either globally or regionally.

We’ve called this list of the 29 brands listed in both the 2013 BBS Overall Opinion and Net Change of Opinion rankings the 2013 BBS Brand Opinion Leaders League Table. 

These vendors, shown below, are held in high regard today by broadcast technology buyers, and are also perceived to be getting better over time.

Please note that both audio and video brands are included in these rankings, and that the table below shown brands in alphabetical order, NOT in the order in which they were ranked in the study. 

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2013 BBS -- Brand Opinion Leaders League Table

 

 

There are a wide variety of companies on this list, including large and small firms; single product and multi-product firms; global and regional players; and audio and video technology providers.

What they have in common is strong brand recognition, and a dynamism that 2013 BBS respondents feel is making them even stronger.

 

Year-over-year changes to these rankings:

Twenty-two in the 2013 BBS Brand Opinion Leaders League Table were listed in the 2012 version of these rankings:

Adobe, Aja Video, Autodesk, Avid, Blackmagic Design, Canon, Cisco, Dolby, Evertz, EVS, Lawo, Neumann, Panasonic, Riedel, Rohde & Schwarz, RTW, Sennheiser, Shure, Snell, Sony, Tektronix, Yamaha

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The following seven companies in the 2013 BBS Brand Opinion Leaders League Table were not included in this ranking in in 2012

Adam, Angenieux, Fujinon, Solid State Logic, Soundcraft, Studer,  Wheatstone

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The following eight companies that were listed in the 2012 BBS Brand Opinion Leaders League Table are not included in the 2013 ranking:

Apple, Clear-Com, Genelec, Harmonic, Harris, Omneon, Schoeps, Wohler

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Brand Opinion Leaders by Product Categories

As shown in the chart below, the companies in the 2013 BBS Brand Opinion Leaders League Table make products in 23 of the 30 categories that we covered in the 2013 BBS, down from 25 product categories in 2012.

The top products for brand leaders are Audio Mixing Cosoles, Microphones, Audio Processing  and Monitoring, Graphics & Branding, Production Switchers, Signal Processing / Interfacing / Modular, and Video Editing.

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2013 BBS -- Brand Opinion Leaders -- Frequency Analysis of Product Categories

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The chart above has a good mix of audio and video products, as well as a mix of hardware and software products.

However, it is interesting to note that many of the most frequently cited product categories are audio-related.  Some vendors on this list, such as Adobe, Avid, Riedel, and Sony, are listed in both audio and video product categories in the 2013 BBS.  Other vendors are listed in only audio categories.  These include Adam, Dolby, Lawo, Neumann, RTW, Sennheiser, Shure, Solid State Logic, Soundcraft, Studer, Wheatstone, and Yamaha.

It is also useful to look at the number of product categories provided by each vendor in the Global Brand Opinion Leader League Table.  After all, larger companies often make more products and are consequently used in more places than their smaller counterparts.

The table below shows the number of product categories that each brand in this ranking produces (as defined by the segmentation used in the 2013 BBS).

 

2013 BBS -- Brand Opinion Leaders -- Frequency Analysis

 

 

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While there are several brands on this list that appear in many product categories, the vast majority produce only one or two types of products.  Indeed out of the thirty brands in this table, sixteen brands  appear only once.

Keep in mind that companies who produce only one type of product are not necessarily small.  There are some very large companies on the list above who appear in just one 201 BBS category.

It turns out that to fully understand what drives brand opinion and brand leadership, one needs to look at the factors that drive and influence these perceptions.  This includes the company’s reputation for things like innovation, reliability, quality, value and great customer service.

These metrics will be covered in future posts.

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Related Content:

The 2013 Big Broadcast Survey (BBS) – overview of available reports, including covered brands and product categories

Largest Ever Study of Broadcast Market Reveals Most Important Industry Trends for 2013

Tracking the Evolution of Broadcast Industry Trends 2012 – 2013

Analyzing Where Money is Being Spent in the Broadcast Industry – The 2013 BBS Broadcast Industry Global Project Index

Broadcast Technology Products Being Evaluated for Purchase in 2013 – 2014

Devoncroft Partners: 2013 Broadcast Industry Market Research Findings

Ranking Broadcast Technology Vendors Part 1 – The 2013 BBS Overall Brand Opinion League Table

Ranking Broadcast Technology Vendors Part 2 – The 2013 BBS Net Change of Overall Brand Opinion League Table

Previous Year: The 2012 BBS Global Brand Opinion Leaders League Table

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© Devoncroft Partners 2009 – 2013. All Rights Reserved.

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Ranking Broadcast Technology Vendors Part 2 – The 2013 BBS Net Change of Overall Brand Opinion League Table

broadcast industry technology trends, broadcast technology market research, Broadcast Vendor Brand Research, market research, Top Broadcast Vendor Brands | Posted by Joe Zaller
Aug 05 2013

This is the sixth in a series of articles about some of the findings from Devoncroft’s 2013 Big Broadcast Survey (BBS), a global study of broadcast industry trends, technology purchasing plans, and benchmarking of broadcast technology vendor brands. Nearly 10,000 broadcast professionals in 100+ countries took part in the 2013 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry. 

 

Previous articles about the 2013 BBS discussed the most important broadcast industry trends, how the relative commercial importance of broadcast industry trends have changed over time, where money is currently being spent in the broadcast industry, broadcast technology products being evaluated for purchase in 2013 and 2014, and the 2013 BBS Overall Brand Opinion League Table.

 

This is the second in a series of posts about how broadcast technology vendors were ranked and benchmarked on a variety of metrics by the respondents to the 2013 BBS.

The first post in this series described the 2013 BBS Overall Brand Opinion League Table, which shows how 2013 BBS respondents ranked broadcast vendor brands.

This post looks at how the global sample of broadcast professionals who participated in the 2013 BBS ranked their Net Change of Overall Opinion of the 151 broadcast technology vendors we covered in the study.

 

Net Change of Overall Opinion

While it’s good news for any vendor to achieve a good “overall opinion” ranking, this metric is somewhat one-sided because it relies solely on the positive opinions of respondents.

In order to get a better understanding of how broadcast technology vendor brands are perceived, it is necessary to look at both the positive and negative opinions of brands. It is also necessary to take into account how these opinions have changed over time.

Once this information has been collected, we use it to create the Net Change of Overall Opinion Ranking, a metric that demonstrates which brands are perceived as getting better, and which are in decline, on an overall basis. Net Change in Overall Opinion provides a more balanced view each brand because it takes into account both the positive and negative perceptions of brands, along with how these opinions have changed over time.

An explanation of how these results were calculated can be found at the end of this article.

The complete list of vendor brands covered in the 2013 BBS is here.

 

The Net Change in Overall Opinion findings from the 2013 BBS are shown below in two ways:

  • An overall industry “league table” that shows the 30 highest ranked vendors for the metric “Net Change of Overall Opinion.”  The data in this chart is broken out globally and regionally.

 

  • An analysis of the “frequency” of appearance of each vendor in the Net Change of Overall Opinion league table

 

The top 30 ranked brands for Net Change of Overall Opinion are shown below for both the global sample of all respondents as well as for all respondents in each of the geographic regions.

When reading these results, please keep the following in mind.

 

Both audio and video brands are included in these rankings, and all response data shown herein is from the global sample of from all 2013 BBS participants, regardless of organization type, size, geographic location, or size of budget; and that actual results in the BBS Brand report may be different.

Please note that inclusion of any brand in any cut of the data shown the tables in this article is dependent on available sample size.  The minimum sample size for inclusion in these charts is 30 respondents per cut of the data. Therefore it is possible that a highly regarded brand was excluded from these findings based on sample size.

In all cases, these results are shown in alphabetical order, NOT in the order in which they were ranked by respondents to the study.


The 2013 BBS Net Change in Overall Opinion League Table:

2013 BBS -- 2013 BBS Net Change of Overall Opinion

 

 

A total of 53 broadcast technology vendor brands are included in this table (versus 59 in 2012 and 51 in 2011), illustrating the geographic variation of opinion. Analysis of these results shows that are some clear market leaders on a global basis, while others are strong on a regional basis.

It’s useful to understand how often each brand appears in the 2013 BBS Net Change in Overall Opinion League Table.

This is shown below, along with the equivalent data from both 2012 and 2011 for comparison.

 

Frequency of appearance of brands in the 2013 BBS Net Change in Overall Opinion League Table:

  • 10 brands appear four times (compared to 9 brands in 2012 and 13 brands in 2011), meaning they were ranked in the top 30 globally and in each geographic region

 

  • 13 brands appear three times (compared to 13 brands in 2012 and 10 brands in 2011)

 

  • 11 brands appear two times (compared to 11 brands in 2012 and 9 brands in 2011)

 

  • 19 brands appear one time (compared to 26 brands in 2102 and 19 brands in 2011).  This illustrates a fragmentation of opinion  about many brands based on geography

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Brands appearing four times in the 2013 BBS Net Change of Overall Opinion League Table:

 

  • 2013 BBS: Adobe, Aja Video, Autodesk, Blackmagic Design, Canon, Evertz, Panasonic, Riedel, Rohde & Schwarz, Sennheiser

 

  • 2012 BBS: Adobe, Avid, Blackmagic Design, Canon, Harmonic, Panasonic, Riedel, Sennheiser, Sony

 

  • 2011 BBS: Adobe, Aja Video, Apple, Blackmagic Design, Canon, Cisco, Genelec, Omneon, Panasonic, Riedel, Sennheiser, Sony, Tektronix

 

 

Brands appearing three times in the 2013 BBS Net Change of Overall Opinion League Table:

  • 2013 BBS: AmberFin, Angenieux, ateme, Cisco, Elemental Technologies, EVS, Harmonic, NewTek, Ross Video, Sony, Telestream, Vizrt, Wide Orbit

 

  • 2012 BBS: Aja Video, Apple, Autodesk, Digital Rapids, EVS, Front Porch Digital, NewTek, Omneon, Phabrix, Rhozet, Ross Video, Vizrt

 

  • 2011 BBS: Ateme,  Evertz, EVS, Harmonic, Net Insight, Rhozet, Rohde & Schwarz, Ross Video, Shure, Vizrt

 

 

Brands appearing two times in the 2013 BBS Net Change of Overall Opinion League Table:

 

  • 2013 BBS: Adam, Ensemble, Front Porch Digital, Lawo, Net Insight, Neumann, Nevion, Phabrix, Screen Service, Snell, Solid State Logic

 

  • 2012 BBS: AmberFin, ateme, brightcove, Cisco, Gigawave, Net Insight, Rohde & Schwarz, Screen Service, Tektronix, Telecast, Wohler

 

  • 2011 BBS: AKG, Digital Rapids, Dolby, Ensemble,  Front Porch Digital, Lawo, Telestream, TVIPS, Wohler

 

 

Brands appearing once in the 2013 BBS Net Change of Overall Opinion League Table:

  • 2013 BBS: arvato / S4M, Avid, Axon, Digital Rapids, Dolby, Fujinon, Linear Acoustic, On-Air (Oasys), Ooyala, RTW, Shure, Soundcraft, Studer, Tektronix, Telecast, TVIPS, Wheatstone, Xen Data, Yamaha

 

  • 2012 BBS: Aspera, Axon, Calrec, Clear-Com, Dolby, Elemental Technologies, Ensemble, Envivio, Evertz, Genelec, Harris, Isilon Systems / EMC, Kaltura, Kit Digital, Lawo, Neumann, PubliTronic / Grass Valley, RTW, Schoeps, Shure, Snell, Telestream, Wheatstone, Wide Orbit, Wowza, Yamaha

 

  • 2011 BBS: AmberFin, Audio-Technica, Avid, Fujinon, Grass Valley, Harris, Inlet Technologies, Linear, Linear Acoustic, Miranda, MSA Focus, Nevion, Playbox, PubliTronic, Schoeps, Screen Service, Solid State Logic, Telecast, Yamaha

 

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Frequency Analysis of the Brands in the in the 2013 BBS Net Change of Overall Opinion League Table:  

In order to provide a better understanding of which brands were most highly ranked in each geographic region, the data has been provided in the table below, which shows the global and regional performance for each brand in the top 30 ranking of overall opinion.

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2013 BBS -- 2013 BBS Net Change of Overall Opinion -- Frequency Analysis

 

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This frequency analysis chart shows that there are some interesting geographic variations in the data. Here’s a closer look at how brands appeared by geography:

 

Appearing only in the global ranking of the 2013 BBS Net Change of Overall Opinion League Table

Four brands achieved a top 30 ranking in the 2013 BBS Net Change of Overall Opinion league table, despite not being listed in the top 30 of any of the three geographic regions.  This may be a function of sample size.  As discussed above, there is a minimum sample size requirement for inclusion in each cut of the data presented in these chart, and the global ranking, by definition, has the largest overall sample.

  • Ensemble, On-Air Systems, Ooyala, Xen Data

 

Appearing only in one region of the 2013 BBS Net Change of Overall Opinion League Table

The following  brands appear in one regional category of the 2013 BBS Net Change of Overall Opinion League Table, but do not appear in the global ranking:

  • Arvato/S4m, Avid, Digital Rapids, Dolby, Fujinon, Linear Acoustic, RTW, Shure, Soundcraft, Studer, Tektronix, Telecast, T-VIPS, Yamaha

 

Appearing only in the EMEA region in the 2013 BBS Net Change of Overall Opinion League Table

  • Arvato/S4m, Axon, RTW

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Appearing only in the Asia-Pacific region in the 2013 BBS Net Change of Overall Opinion League Table

  • Avid, Digital Rapids, Dolby, Fujinon, Shure, Soundcraft, Studer, Tektronix, Yamaha

 

Appearing only in the Americas region in the 2013 BBS Net Change of Overall Opinion League Table

  • Telecast, T-VIPS, Wheatstone

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How These Results Were Calculated

No company is perfect, and the brands we measured in the 2013 BBS are no different.  All brands in the 2013 BBS had both positive (got better) and negative (got worse) connotations associated with them.  There were also are significant percentage of respondents who said their opinion of a brand had “stayed the same.”

2013 BBS participants were asked to rank their opinion of broadcast technology vendor brands on a scale of 1-10 — with 10 being best in the market, and 1 being worst in the market.

We then asked respondents whether their opinion of these brands has changed over the last few years – specifically whether they feel their opinion of each brand has “improved,” “declined” or “stayed the same.”

The Net Change in Overall Opinion for each brand was then calculated by subtracting the percentage of respondents who said a brand “got worse” from the percentage of respondents who said their opinion of a brand had “got better,” while ignoring the “stayed the same” responses.

This “change of opinion data” provides a more comprehensive view of how each brand is perceived by the market because it takes into account positive and negative perceptions.

 

 

Please note that inclusion of any brand in the tables in this article is dependent on available sample size.  The minimum sample size for inclusion in the tables shown herein is 30 respondents per cut of the data. Therefore it is possible that a highly regarded brand may have been excluded from any or all of the tables in this article due to insufficient sample size.

Also, please keep in mind when reviewing this information that all data these charts are presented in alphabetical order, NOT in the order brands were ranked by respondents to the 2013 BBS.

 

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The information in this article is based on select findings from the 2013 Big Broadcast Survey (BBS), a global study of broadcast industry trends, technology purchasing plans, and benchmarking of broadcast technology vendor brands. Nearly 10,000 broadcast professionals in 100+ countries took part in the 2013 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry. The BBS is published annually by Devoncroft Partners.

Unless otherwise specified, all data in this article measures the responses of all non-vendor participants in the 2013 BBS, regardless of factors such as organization type, organization size, job title, purchasing and geographic location.  Please be aware that responses of individual organization types or geographic locations may be very different. Granular analysis of these results is available as part of various paid-for reports based on the 2013 BBS data set. For more information about this report, please contact Devoncroft Partners.

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Related Content:

The 2013 Big Broadcast Survey (BBS) – overview of available reports, including covered brands and product categories

Largest Ever Study of Broadcast Market Reveals Most Important Industry Trends for 2013

Tracking the Evolution of Broadcast Industry Trends 2012 – 2013

Analyzing Where Money is Being Spent in the Broadcast Industry – The 2013 BBS Broadcast Industry Global Project Index

Broadcast Technology Products Being Evaluated for Purchase in 2013 – 2014

Devoncroft Partners: 2013 Broadcast Industry Market Research Findings

Ranking Broadcast Technology Vendors Part 1 – The 2013 BBS Overall Brand Opinion League Table

Previous Year:  The 2012 BBS Net Change of Overall Brand Opinion League Table

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© Devoncroft Partners. All Rights Reserved.

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Evertz Announces $9 Million Order From Unnamed International Customer

Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
Aug 01 2013

Evertz announced it has closed a deal with an international customer valued at more than C$9m.

The company says the order “reflects the adoption and broad deployment of Evertz infrastructure, routing, compression, conversion, visualization, monitoring and control solutions by a key international customer.”

Evertz is notoriously tight-lipped about major sales announcements, but does occasionally provide some information.

In September 2012 Evertz disclosed on its Q1 Fiscal 2013 earnings call that it had received orders during the quarter from a single customer that totaled approximately C$14.4m,(15% of the company’s revenue that quarter) but did not disclose the customer’s name.  In November 2012, the company announced that it had has received purchase orders “from two unnamed “national US customers, totaling in excess of $12 million.”

The company is similarly quiet about its ongoing M&A activity, and rarely discloses the names of acquired companies.

In December 2012, Evertz announced it had spent $5m to acquire an 80% position, in a “technology-based company with revenues in excess of $10m.”  Evertz did not disclose who they bought, saying only that the acquisition will be accretive to earnings and that the acquired company’s “unique communications solutions and services along with the expertise of its talented staff complement Evertz infrastructure, transport and control solutions.”

Similarly, when Evertz purchased UK-based automation and media management provider Pharos in late 2010, the company said only that it had “entered into an agreement to purchase the shares of an international technology based company for under $5m.”

The strategy appears to be working for the company. For the full 2013 fiscal year, Evertz posted net earnings of C$65.2m (C$0.88 per share), up 9% compared to net earnings of C$60m (C$0.81) in fiscal 2012.  Fiscal 2013 revenue was C$316.3, up 8% versus the previous year, and a record result for the company.

Q4 fiscal 2013 earnings were C$10.52m (C$0.11 per share), down 40% versus the same quarter last year, and down 20% versus the third quarter of fiscal 2013.  Q4 FY 2013 revenue was C$65.4m, down 14% versus the same period a year ago, and down 9% versus the previous quarter.

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Related Content:

Press Release: Evertz Reports Purchase Order in Excess of $9 Million

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

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

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

More Broadcast Vendor M&A: Evertz Buys Pharos, Adding Automation and Media Management Capabilities to New Playout Solutions

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© Devoncroft Partners 2009 – 2013. All Rights Reserved.

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Ranking Broadcast Technology Vendors Part 1 – The 2013 BBS Overall Brand Opinion League Table

broadcast industry technology trends, broadcast industry trends, broadcast technology market research, Broadcast Vendor Brand Research, Top Broadcast Vendor Brands | Posted by Joe Zaller
Jul 10 2013

This is the fifth in a series of articles about some of the findings from Devoncroft’s 2013 Big Broadcast Survey (BBS), a global study of broadcast industry trends, technology purchasing plans, and benchmarking of broadcast technology vendor brands. Nearly 10,000 broadcast professionals in 100+ countries took part in the 2013 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry. 

Previous articles about the 2013 BBS discussed the most important broadcast industry trends, how the relative commercial importance of broadcast industry trends have changed over time, where money is currently being spent in the broadcast industry, and broadcast technology products being evaluated for purchase in 2013 and 2014.

 

How 2013 BBS Participants Ranked Broadcast Technology Vendors

This is the first in a series of posts about how broadcast technology vendors were ranked and benchmarked on a variety of metrics by the respondents to the 2013 BBS.

Each year, as part of the Big Broadcast Survey (BBS), we ask a global sample of broadcast professionals to rank a variety of technology vendor brands on a wide range of metrics.

We use this information to create a series of reports, which through benchmarking and industry “league tables” provides a view as to how each vendor is positioned in the market relative to the industry as a whole, as well as against their direct competitors.

This post looks at how the global sample of broadcast professionals who participated in the 2013 BBS ranked their overall opinion of the 151 broadcast technology vendors we covered in the study.

An explanation of how these results were calculated can be found at the end of this article. The complete list of vendor brands covered in the 2013 BBS is here.

 

Research findings are displayed in two ways in this article:

  • An overall industry “league table” that shows the 30 highest ranked vendors for the metric “overall opinion.”  The data in this chart is broken out globally and regionally

 

  • An analysis of the “frequency” of appearance in the “overall opinion league table”

 

The top 30 ranked brands for overall opinion are shown below for both the global sample of all respondents as well as for all respondents in each of the geographic regions.

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Please note that in all cases, these results are shown in alphabetical order, NOT in the order in which they were ranked by 2103 BBS participants.      

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2013 BBS -- 2013 BBS Overall Brand Opinion League Table (smaller)

 

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A total of 46 broadcast technology vendor brands are included in this table, (versus 48 in 2012 and 43 in 2011), illustrating the geographic variation of opinion, which will be discussed later.

In terms of frequency of appearance in the above ranking:

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  • 17 brands appear four times, meaning they were ranked in the top 30 globally and in each of the three geographic regions.  For comparison, in the 2012 BBS (when we covered 152 brands) there were 15 brands that appeared in the top 30 globally and in each of the 3 regions.

 

  •  9 brands appear three times, versus 10 brands that appeared three times last year.

 

  • 5 brands appear two times, versus 7 brands that appeared two times last year. 

 

  • 15 brands appear one time, which demonstrates that some brands are strongest in one geographic area. In the 2012 BBS, 16 brands appeared one time.

 

Analysis of the data shows that are some clear market leaders on a global basis, while others are strong on a regional basis.

A breakdown of how many times each company appears in the ranking shows how many times each brand appears in the chart above.

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Brands appearing four times in the 2013 BBS Overall Brand Opinion League Table: 

The following brands are listed four times in the 2013 BBS Overall Brand Opinion League Table, meaning that research participants ranked them in the top 30 for overall opinion globally, as well as in each of the three geographic regions:

  • Adobe, Aja Video, AKG, Blackmagic Design, Canon, Cisco, Dolby, Genelec, Neumann, Panasonic, Rohde & Schwarz, Sennheiser, Shure, Solid State Logic, Sony, Studer, and Tektronix

 

Although many of these brands also appeared four times in the BBS Overall Brand Opinion League Table last year, there are also several changes to the composition of this list.

The following brands that appear in all four categories (global, EMEA, APAC, Americas) in the 2013 BBS Overall Brand Opinion League Table were listed fewer than four times in the 2012 BBS Overall Brand Opinion League Table. The numbers shown in parentheses show the number of times each brand was listed in the BBS Overall Brand Opinion League Table last year, and the year-over year change:

  • Aja Video (2x, +2), Blackmagic Design (1x, +3), Rohde & Schwarz (3x, +1), Solid State Logic (2x, +2), Studer (2x, +2)

 

The following brands were listed in all four categories in the 2012 BBS Overall Brand Opinion League Table, and appear fewer than four times in 2013:

  • Apple, Avid, Schoeps

 

 

Brands appearing three times in the 2013 BBS Overall Brand Opinion League Table: 

The following brands are listed three times in the 2013 BBS Overall Brand Opinion League Table.

The numbers shown in parentheses show the number of times each brand was listed in the BBS Overall Brand Opinion League Table last year, and the year-over year change:

  • Angenieux (3x, no change), Avid (4x, -1), Clear-Com (3x, no change), EVS (1x, +2), Fujinon (3x, no change), JBL (3x, no change), Schoeps (4x, -1), Snell (2x, +1), Yamaha (3x, no change)

 

The following brands were listed in three categories in the 2012 BBS Overall Brand Opinion League Table, and appear fewer than three times in 2013:

  • Autodesk, beyerdynamic, Ikegami, Wohler

 

 

Brands appearing two times in the 2013 BBS Overall Brand Opinion League Table:

The following brands are listed two times in the 2013 BBS Overall Brand Opinion League Table.

The numbers shown in parentheses show the number of times each brand was listed in the BBS Overall Brand Opinion League Table last year, and the year-over year change:

  • Apple (4x -2), Autodesk (3x, -1), beyerdynamic (3x, -1), Mackie (+2), Soundcraft (+2)

 

The following brands were listed in two categories in the 2012 BBS Overall Brand Opinion League Table, and appear fewer than two times in 2013:

  • Electro Voice, Grass Valley, RTW

 

 

Brands appearing one time in the 2013 BBS Overall Brand Opinion League Table:

The following brands are listed one time in the 2013 BBS Overall Brand Opinion League Table.

The numbers shown in parentheses show the number of times each brand was listed in the BBS Overall Brand Opinion League Table last year, and the year-over year change:

  • Adam (no change), Audio-Technica (+1), Barco (+1), Evertz (no change), Grass Valley (2x, -1), HP (no change), Ikegami (3x, -2), Lawo (no change), Leader (+1), NEC (no change), Riedel (no change), RTS Intercom Systems (no change), RTW (2x, -1), Wheatstone (+1), Wohler (3x, -2)

 

The following brands were listed in one category in the 2012 BBS Overall Brand Opinion League Table, and are not listed in 2013:

  • DK Technologies, Harmonic, Harris, Omneon (not covered in 2013 BBS), Salzbrenner Stagetec, Telex, Thomson

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Frequency Analysis of the Brands in the in the 2013 BBS Overall Brand Opinion League Table:  

The table below, which shows the global and regional performance for each brand in the top 30 ranking of overall opinion, provides a better understanding of where each brand was highly ranked for overall opinion.

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2013 BBS -- 2013 BBS Overall Brand Opinion League Table Frequency Analysis (smaller)

 

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The frequency chart shows some interesting geographic variations in the data, which is detailed below.

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Appearing in the top 30 “overall opinion” ranking globally + one region

Three brands achieved a top 30 ranking globally, despite being in the top 30 of only one out of the three geographic regions.

  • Apple, Autodesk, beyerdynamic

 

Appearing in the top 30 “overall opinion” ranking in one region

The following 15 brands did not make the top 30 in the global league table of overall opinion, but they did appear in the top 30 overall opinion ranking in one of the geographic regions:

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Appearing in the top 30 “overall opinion” ranking only in EMEA

  • Barco, Lawo, Riedel, RTW

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Appearing in the top 30 “overall opinion” ranking only in Asia-Pacific

  • Audio-Technica, Evertz, HP, Leader, NEC

 

Appearing in the top 30 “overall opinion” ranking only in the Americas

  • Adam, Grass Valley, Ikegami, RTS Intercom Systems, Wheatstone, Wohler

 

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How These Results Were Calculated

2013 BBS participants were asked to rank their opinion of broadcast technology vendor brands on a scale of 1-10 — with 10 being best in the market, and 1 being worst in the market.

This data was then aggregated and averaged in order to generate the global score for each brand based on these responses. In order to create the regional scores, this data was broken out geographically based on the location of the respondent.

The top 30 brands for each of the four ranking lists (global, EMEA, Asia-Pacific, Americas) was sorted by alphabetical order to create the tables shown in this article.

Please note that inclusion of any brand in the tables in this article is dependent on available sample size.  The minimum sample size for inclusion in the tables shown herein is 30 respondents per cut of the data. Therefore it is possible that a highly regarded brand may have been excluded from any or all of the tables in this article due to insufficient sample size.

Also, please keep in mind when reviewing this information that all data these charts are presented in alphabetical order, NOT in the order brands were ranked by respondents to the 2013 BBS.

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The information in this article is based on select findings from the 2013 Big Broadcast Survey (BBS), a global study of broadcast industry trends, technology purchasing plans, and benchmarking of broadcast technology vendor brands. Nearly 10,000 broadcast professionals in 100+ countries took part in the 2013 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry. The BBS is published annually by Devoncroft Partners.

Unless otherwise specified, all data in this article measures the responses of all non-vendor participants in the 2013 BBS, regardless of factors such as organization type, organization size, job title, purchasing and geographic location.  Please be aware that responses of individual organization types or geographic locations may be very different. Granular analysis of these results is available as part of various paid-for reports based on the 2013 BBS data set. For more information about this report, please contact Devoncroft Partners

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Related Content:

The 2013 Big Broadcast Survey (BBS) – overview of available reports, including covered brands and product categories

Largest Ever Study of Broadcast Market Reveals Most Important Industry Trends for 2013

Tracking the Evolution of Broadcast Industry Trends 2012 – 2013

Analyzing Where Money is Being Spent in the Broadcast Industry – The 2013 BBS Broadcast Industry Global Project Index

Broadcast Technology Products Being Evaluated for Purchase in 2013 – 2014

Devoncroft Partners: 2013 Broadcast Industry Market Research Findings

Previous Year: The 2012 BBS Overall Brand Opinion League Table

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© Devoncroft Partners. All Rights Reserved.

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

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Jun 17 2013

Evertz announced that its revenue for the fourth quarter of its 2013 fiscal year was C$65.4m, down 14% versus the same period a year ago, and down 9% versus the previous quarter.

Net earnings for the quarter were C$10.52m (C$0.11 per share), down 40% versus the same quarter last year, and down 20% versus the previous quarter.

The results were well below the consensus expectations of equity analysts who were expecting revenue of C$73.2m and EPS of C$0.17. Analysts called the results “disappointing,” and noted that this was the company’s weakest quarter since Q4 2008.

Evertz EVP Brian Campbell said the company’s performance in the quarter had been impacted by the same type of macroeconomic issues seen across the technology sector in the first quarter of 2013, “where it’s pretty much in the first quarter sales have been off ten percent.” He also said that the European market had been weaker and is an area of concern for the company.

However, Campbell noted that the company does not necessarily see this as a long term trend, saying “I think it’s more a delay of spending as customers determine what they’re going to do in 2013.”

Revenue in the US/Canada region was C$33.3m, down 9.1% versus the same period a year ago, and down 1% versus the previous quarter.  US/Canada sales were 51% of total revenue during the quarter, up from 48% of revenue during the same period a year ago, and up from 47% of revenue last quarter.

International revenue was C$32.1m, down 19% versus the same period last year, and down 16% versus the previous quarter. International sales were 49% of total revenue, down from 52% last year, and down from 55% last quarter.

The company had 52 orders in the quarter that were greater than C$200,000 (down from 57 last quarter), and no single customer accounted for more than 5% of the company’s total revenue in the quarter.

Gross margins for the fourth quarter were 56.7%, up from 56% last year and up from 56.1% 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 quarter were C$15.3m, an increase of 20.1% versus the same period last year, and up 17% versus the previous quarter.   R&D expenses were approximately 23.5% of revenue in the quarter, versus 15% last year, and 17% last quarter. Gridley attributed the sharp rise in R&D expenditure in the quarter to accelerated the purchase of materials and prototypes before the end of its fiscal year.  Gridley added that the company, which sees strong R&D as one of its differentiators, added engineers in the quarter and intends to continue adding engineers every quarter.

Selling and administrative expenses for the quarter were C$14m, an increase of 14% versus last year, and an increase of 2% versus the previous quarter. Selling and administrative expenses represented approximately 21% of revenue in the quarter versus 16% of revenue during the same period last year, and 19% of revenue last quarter.

The company’s purchase order backlog at the end of the third quarter of 2012 was in excess of C$35m, down from C$45m last quarter, and shipments during the month of May 2013 were $19 million.

 

Record Results for the Full Fiscal Year 2013

Revenue for the full year FY 2012 was C$316.3, up 8% versus the previous year, and a record result for the company.

The company’s top 10 customers accounted for approximately 25% of sales (C$79.1m) during the year, with no single customer representing over 5% (C$15.8m) of total annual revenue.

Full year fiscal 2013 net earnings were C$65.2m (C$0.88 per share), up 9% compared to net earnings of C$60m (C$0.81) in fiscal 2012.

During the year, the company had 246 orders of more than C$200,000, down from 282 in the previous year.

Full year revenue from the US and Canada revenue was $C173.2m, up 15.6% versus the full fiscal year 2012.  US/Canada revenue accounted for 55% of total revenue in fiscal 2013, up from 51% in fiscal 2012.

Full year revenue from the international region was $C143.1m, essentially flat with the previous year. International revenue accounted for 45% of total revenue in fiscal 2013, down from 49% in fiscal 2012.

Cash provided by operations was C$89.6 m for the 2013 fiscal year, up from C$66.6m in fiscal 2012. Before taking into account taxes and the changes in non-cash working capital, Evertz generated C$78.6m from operations for fiscal 2013, compared to C$73.0m for fiscal 2012.

Gross margins for the full year fiscal 2013 were 57.5%, up from 57% last year and within what company’s targeted range.

Full year R&D expenses were C$52.85m, an increase of 20% versus the previous year.   R&D expenses were approximately

Selling and administrative expenses for the fiscal year were C$53.1m, an increase of 13% versus fiscal 2012.  Selling and administrative expenses represented approximately 17% of full year revenue, up from 16% of full year revenue in fiscal 2012.

For the year ended April 30, 2013, the company used cash in financing activities of C$40.1m as a result of the payment of dividends of C$42.9m, repurchase of capital stock costing C$4.2m offset by the issuance of share capital of C$8m.

Campbell attributed the company’s record revenue to “continued worldwide demand for Evertz’s high-definition 3G and 4K video infrastructure offerings. More specifically, in success of Evertz’s comprehensive solutions delivering compelling value to our customers, and to the ongoing transition to high definition, and the increasing global demand for high-quality video.”

Campbell said the company remains “cautiously optimistic regarding the global economic environment, confident in Evertz’s ability to deliver compelling value and long-term stability to our customers. We’re encouraged by the Company’s continued solid performance in fiscal 2013, its record sales of C$316m, delivering net earnings of 21%, all while investing C$53m in R&D to fuel future growth. We are encouraged by the momentum we carry into fiscal 2014 with a purchase order backlog plus new shipments totaling over C$54m. With Evertz’s significant investments in new award-winning technologies, our comprehensive product offerings and the capabilities of our staff, Evertz is poised to build upon our leadership position.”

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Related Content:

Press Release: Evertz Technologies Reports Record Revenues in Fiscal 2013

Previous Quarter: Evertz Q3 FY 2013 Revenue Flat With Last Year, Down 14 Percent versus Last Quarter

Previous Year: Evertz Q4 FY 2012 Revenue Rises 11 Percent, Order Backlog at Record Level

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

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© Devoncroft Partners. All Rights Reserved.

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Video Chip Maker Ambarella Grows Revenue 24.5 Percent in Fiscal 2013

Broadcaster Financial Results, Quarterly Results | Posted by Joe Zaller
Mar 17 2013

Video chip maker Ambarella announced that its revenue for the fourth quarter of fiscal 2013 was $31.5m, up 28.3% from $24.6 million in the same period in fiscal 2012. For the fiscal year ended January 31, 2013, the company’s revenue was $121.1m, up 24.5% from $97.3m for the year ending January 31, 2012.

GAAP net income for the fourth quarter of fiscal 2013 was $3.6m, or $0.13 per diluted ordinary share, compared with GAAP net income of $1.8m million, or $0.04 per diluted ordinary share, for the same period in fiscal 2012. GAAP net income for the year ended January 31, 2013 was $18.2m, or $0.60 per diluted ordinary share. This compares to GAAP net income of $9.8m, or $0.30 per diluted ordinary share, for the year ended January 31, 2012.

Q4 non-GAAP net income was $5m, or $0.18 per diluted ordinary share. This compares with non-GAAP net income of $2.7m, or $0.08 per diluted ordinary share for the same period in fiscal 2012. Non-GAAP net income for the year ended January 31, 2013 was $22.7m, or $0.79 per diluted ordinary share. This compares to non-GAAP net income of $13.1m, or $0.45 per diluted ordinary share, for the year ended January 31, 2012.

Q4 GAAP gross margins were 63.2%, down from 68.2% for the same period in fiscal 2012. For the year ended January 31, 2013, GAAP gross margin was 66.6%, flat with last year. Q4 non-GAAP gross margins were 63.3%, compared with 68.3% for the same period last year. Full year non-GAAP gross margin were 66.7%, down slightly from 66.7% versus last year.

“We are very pleased with our fourth quarter and fiscal year 2013 financial results,” said Fermi Wang, president and CEO. “We experienced significant year-over-year growth in our automotive and sports camera markets, and we were especially pleased with progress in our professional IP security camera market, which contributed strong gross margins as well as substantial year-over-year revenue growth. As this security market continues to grow rapidly, driven by the migration from analog standard definition cameras to digital, IP-based high definition cameras, we believe our products offer advanced technology and leading features that allow our customers to deliver winning solutions to the market.”

Ambarella’s A6 broadcast encoder/transcoder, which performs 1080p60 encoding and 1080i60 transcoding,is used by a variety of firms for H.264 and MPEG-2 head-end encoders and high-density transcoders.   It is believed that Ambarella’s broadcast industry clients include Harmonic, Ericsson, Motorola, Cisco, Harris, RGB Networks, and Evertz.

The company also sells video processors for digital video cameras, including the popular GoPro consumer cameras.

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Relate Content:

Press Release: Ambarella, Inc. Announces Fourth Quarter and Fiscal 2013 Financial Results

Ambarella Q4 FY 2013 Conference Call Transcript

Video Processing Chip Vendor Ambarella Raises $36 Million Through Initial Public Offering

Ambarella — Ammended S1 (IPO) Filing

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© Devoncroft Partners. All Rights Reserved.

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

Broadcast technology vendor financials, Quarterly Results | 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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