Posts Tagged ‘Jacques Galloy’

EVS CFO Jacques Galloy Departs Company

Broadcast technology vendor financials | Posted by Joe Zaller
Jul 08 2013

Production and playout video server specialist EVS announced that EVP and CFO Jacques Galloy is leaving the company to take up new challenges and pursue other private and professional projects.

 

Jacques Galloy

 

Here’s the full statement from the company:

EVS Broadcast Equipment SA, the leading provider of live video production systems, today announces the departure of its Executive Vice President and Chief Financial Officer (CFO), Jacques Galloy (42), representing Gallocam sprl, scheduled for late 2013.

After 12 years of dedication to the development of the group, 12 months after the introductory period of the new CEO, and now that the new organization is in place, he plans to take up new challenges and pursue other private and professional projects. In accordance with the Board of Directors, he shall accompany the transition until the arrival of a new chief financial officer, at the latest at the end of the year.

The Board of Directors and the Group CEO Joop Janssen, praise his hard work and professionalism: “Jacques Galloy skills have been an important asset for EVS and he has contributed greatly to the development of the group. We want to thank him for his service and we wish him the best for the future.”

“Developing EVS during those twelve years with this great team was an amazing experience”, said Jacques Galloy.

Pierre Rion, Chairman of the Board of Directors, said: “I am delighted that Jacques Galloy continues his Board mandate at least until his term at the Ordinary Annual General Meeting in May 2014.”

 

In article about his departure from EVS, Belgian newspaper Le Vif, described Galloy as “more than a CFO,” saying he played a role at the company “well beyond the scope of his official duties,” referring to Galloy’s expanded role following the departure of EVS co-founder and CEO Pierre L’Hoest in September 2011. At that time, the company announced that it had modified the structure of its executive committee by placing Galloy and two other executives  in charge of its technical, commercial, operational, corporate and financial functions until a new CEO was appointed.

In May 2013 EVS named industry veteran Joop Janssen CEO.  Jassen had previously been CEO of the Videocom division of the Vitec Group. Jassen announced a new strategy and vision for EVS in February 2013, along with record revenue and profits.

According to the Le Vif article, although Galloy had to “return to a little more restraint from the commitment of the new CEO Joop Janssen,” his departure from the company is not the result of a disagreement with the company. EVS board chairman Pierre Rion  told Le Vif that Jassen’s appointment “in no way prompted [Galloy’s] departure. We are all in excellent terms and Jacques Galloy will also remain a director of EVS. It is therefore rather see his departure as a new personal challenge. ”

Galloy joined EVS from broadcaster RTL where he worked for five years in a number of senior financial position.  Prior to RTL, he was a senior auditor at PwC.

EVS, one of the broadcast industry’s most profitable technology vendors, reported a Q1 2013 net profit of €10m on revenue of €32.8m, up 15.8 and 9.2% respectively versus the same period a year earlier.

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Related Content:

Press Release: Chief Financial Officer Jacques Galloy Leaves EVS Group

Le Vif Article: CFO Jacques Galloy leaves EVS (translated from French)

EVS Revenue up 9.2% in Q1 2013, Driven by Strong Performance in APAC

EVS Posts Record Revenue in 2012, Unveils New Strategy and Vision for Future

Press Release: EVS Broadcast Equipment Appoints Joop Janssen as CEO

EVS CEO Pierre L’Hoest Steps Down (Sept 2011)

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EVS Revenue up 9.2% in Q1 2013, Driven by Strong Performance in APAC

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
May 21 2013

Production and playout video server specialist EVS reported that its revenue for the first quarter of 2013 was €32.8m, an increase of 9.2% versus the same period last year, and an increase of 28.4% versus the previous quarter.   Excluding impact of exchange rates and large rental contracts, (a large, but lumpy part of EVS’s revenue), the company’s Q1 2012 revenue was up 9.4% versus last year.

Net profit in the quarter was €10m, up 15.8% versus the same period a year ago, and up 128% versus the previous quarter.

EBIT (earnings before interest and tax) in the quarter was €14.5m, up 6.7% compared to the same period last year, and up 179% versus last quarter. The corresponding operating margin for the quarter was 44% down slightly from 45.1% last year, and up from 20.3% last quarter.

Gross margins for the first quarter were 79.6%, up from 77.6% last year slightly versus last year, and up from 67.3% last quarter (Last quarter, EVS company set-up a new provision of €1m for 2-years standard technical warranty. Excluding this provision, gross margins last quarter would have been 71.2%). The company attributed is margin expansion to the leveraging effect of higher sales on fixed operations costs.

Operating expenses increased by 19.2% versus the same period a year ago, due to increased headcount, the acceleration on some strategic R&D projects, and some costs relating to the setup of the company’s new strategy.

R&D expenses in the quarter were €5.8m, or 18% of revenue, up 14% from the same period last year, and down 9% versus last quarter, when the company brought on R&D contractors to accelerate certain R&D projects.

Selling and administrative expenses in the first quarter of 2013 were €5.6m, or 17% of revenue, up 25% versus the same period a year ago, and up 41% versus the previous quarter.

The company ended the quarter with 465 employees, up from 463 at the end of last quarter, and up 9% from 428 employees at the end of Q1 2012.  EVS added 48 full-time employees in 2012, including 25 in the fourth quarter in order to “accelerate some strategic R&D developments.” The still has 20+ open position, however it now says that it plans to reduce OpEx growth compared to previous years.

EVS CFO Jacques Galloy said the results were in line with the company’s expectations, and highlighted the fact that the company’s revenue is growing faster than the overall market. Galloy also said that he expects the second of 2013 to be stronger than the first half of the year as customers prepare for major sporting events in 2014.

 

Order Book:

The order book stood at €42.9m as of May 10, 2013, essentially flat compared to February 15, 2013.  This includes €32.8m worth of orders to be delivered in 2013 and €10.1 worth of orders, to be delivered in 2014 (up from €5.6m last quarter).

The company highlighted the fact that its ENM order book more than doubled in during the first quarter of 2013 to €7m, on the back of significant orders.

 

Segment Revenue:

As of this quarter, EVS has changed the way it reports segment revenue.  The company, which previously reported revenue in the “OB” and “Studio” segments, now breaks out its revenue by market (Sports, ENM and Big Events), by Region (APAC, EMEA and Americas) and by nature (Systems and Services).

Approximately 90% of former OB and 50% of the former studio segments are now allocated to “Sports,” while about 10% of former OB as well as 50% of studio is now allocated to ENM.

  • Revenue from sports-related applications during the first quarter of 2013 were €27.2m, or 82.8% of total group sales, an increase of 19.3% versus last year. The company said revenue from sports-related customers increased due to new OB and sports center projects across many countries.
  • Revenue from Entertainment, News & Media (ENM) during the quarter was €5.6m, or 17.2% of total group sales, down 22.5% compared to last year. The company attributed the decline in ENM to a large project delivered in Q1 2012, which was not repeated.
  • Systems revenue in the quarter was €31.2m, or 95% or total revenue, up 10.5% versus last year.  Services revenue was €1.6m, or 5% of total revenue, down 11.2% versus last year.

 

 

Geographic Revenue:

  • Revenue from EMEA in the first quarter of 2013 was €14.2m, down 19.4% last year, Sales in EMEA accounted for 43% of group revenue, down sharply from 59% last year.  The company said EMEA revenue was in-line with expectations, and that “Eastern Europe, UK and Northern Europe are most dynamic while Mediterranean area remains weak.”
  • Americas revenue for the first quarter of 2013 was €8.4m, up 50.1% versus last year. Americas accounted for 41.2% of group revenue, up significantly from 19% last year. The company attributed the growth in the Americas region to a strong order book rather than new deals.  EVS said it “shall be a challenge to match the record 2Q12 sales numbers of €12.7m as the order intake in the America’s is weaker than expected.”
  • Q1 2013 revenue from the APAC region was €10.2m, up 50.5% versus last year. The company says it is “gaining market share in this buoyant region which is delivering above expectations, in particular in Australia and Japan.” APAC accounted for 31% of total revenue in Q1 2013, up from 23% last year.

 

Outlook:

The company said it is “optimistic about the long term prospects of the group, underpinned by robust long term growth drivers,” and maintained its previously issued guidance.

Management said that sales in the second half of the year should be better than first half as it shall start benefiting from the traction of big sporting events in 2014 (also in emerging countries) as well as the first impacts of the new strategy

However, management cautioned that the company has low visibility in the current state of the economy, and that because the company “targets small niches where the combination of infrastructure reliability, applications agility and service quality are essential success criteria; tt should be clear that risk factors such as economic uncertainties, balance-sheets constraints of clients or major currencies fluctuations do not make short-term forecasting easy.”

EVS also said that its “operating expenses should grow by a low double digit rate, which should normally translate in lower margins.”

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“The first quarter delivered by our company is encouraging,” said EVS CEO Joop Janssen. “In an uncertain macro-economic environment, we posted again a solid performance. While some regions and countries go through challenging times more than others, the global reach and EVS’ strong brand and product position gives us confidence to deliver our ambitious plan. We are in particular proud of our very good progress in APAC where in addition to a strong market development our share in it seems to grow even more rapidly in the quarter. Our new strategy, launched in February of this year is now fully in place and very well received by our markets at the yearly global Media tradeshow (NAB) in mid-April. EVS launched an impressive number of new products in all of our four target markets. The execution of the new organization plans is well on track. As indicated earlier we have brought our headcount growth further under control while concentrating on leveraging our investments in new product innovation.”

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Related Content:

Press Release: EVS Reports First Quarter 2013 Results

EVS Q1 2013 Earnings Presentation

Previous Quarter: EVS Posts Record Revenue in 2012, Unveils New Strategy and Vision for Future

Previous Year: EVS Reports Record Revenue and Order Book in Q1 2012

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EVS Posts Record Revenue in 2012, Unveils New Strategy and Vision for Future

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 27 2013

Production and playout video server specialist EVS announced that its revenue for 2012 was €137.9m, a record for the company.  The company also posted an impressive EBIT margin of 44.4% for the full year.

Major sporting events such as the European football championships and the London Olympics were major drivers of the company’s business in 2012. Following a roaring start to the year, which saw EVS exceed the entire previous year’s revenue by the end of the third quarter of 2012, the company’s revenue slowed in Q4 in accordance with the guidance it provided earlier in the year.

Revenue for the fourth quarter of 2012 was €25.6m, down 17.5% versus the same period a year ago, and down 35% versus the previous quarter.  Excluding currency fluctuations and big event rentals, which are a major revenue driver for EVS, the company said its revenue declined 17.3% versus the fourth quarter of 2011.

Net profit in the quarter was €4.4m, down 42% versus the same period a year ago, and down 65% versus the previous quarter.

EBIT (earnings before interest and tax) in the quarter was €5.2m, down 60.1% compared to the same period last year, and down 73% versus last quarter. The corresponding operating margin for the quarter was 20.3%, down from 41.9% last year, and 48.8% last quarter.  The company called the lower EBIT margin “temporary,” and attributed it to “seasonally lower sales with growing costs.”

Consolidated gross margins for the quarter were 67.3%, versus 78% last year, and 79.4% last quarter.  The company attributed the lower margins to “the deleveraging effect of lower sales on growing fixed operations costs but also due to the set-up of a new provision of €1m for 2-years standard technical warranty.”  The company said that if this prevision were excluded that gross margins for the quarter would have been 71.2%.

SG&A expenses in the quarter were €3.9m, down from €5.5m last year.  R&D expenses in the fourth quarter were €6.4m, up 21% versus the same period a year ago.

 

Full Year Results

Revenue for the full year was 137.9m, an increase of 29% versus 2011. Excluding currency fluctuations and big event rentals, which are a major revenue driver for EVS, the company said its revenue increased 18% in 2012 versus 2011.

Net profit for 2012 was €41.7m up 30.2% versus the previous year.

Consolidated gross margin were 77.3%, down slightly from 2011.

Operating expenses increased by 15.3% in 2012 versus 2011.  The company said its 2012 OpEx included “one-off repositioning costs of €1.4m, that was partly offset by the release of a past litigation provision of €1. EVS said its underlying 14.3% increase in OpEx during the year was due to an “increased number of employees as well as investments in a new group ERP and lower R&D tax credits.”

Company CFO Jacques Galloy said: “After some years of sales stagnating at €110m, we closed 2012 with a record level, with sales growing by 29.0% and topping €137.9 million. We benefited from big sporting events rentals this year for about €10m million but our overall business grew strongly, especially in studios (+30.9%) and in the Americas (+32.7% at constant currency). The operating result (EBIT) grew by 39.0% compared to last year. As anticipated, 4Q12 delivered a weaker performance following a very strong sporting summer. The order book as of February 15, even though lower than at the beginning of 2012, is record for starting an uneven year, highlighting our strong competitive position and the successful investments in the past. We remain optimistic about the long term growth drivers of EVS while our short to medium term visibility remains limited as usual. 2013 shall not benefit from such big sporting events but our continued investments in innovation and expansion pave the way for positioning the company for the future”

 

Segment Results for 2012:

  • Studio revenue in 2012 was €63.3m, up 30.9% versus 2011 (up 17.3% on a constant currency basis and excluding big events).  The studio segment accounted for 46% of revenue in 2012, with outside  broadcast (OB) making up the remainder.

 

  • OB revenue in 2012 was €74.6.m million up 27.4% versus 2011 (up 18% on a constant currency basis and excluding big events).  OB sales represented 54% of total sales in 2012.

 

Regional Results for 2012:

  • 2012 revenue from the EMEA region was €74.6m (54.1% of total revenue), up 29% versus last year, and down 17% versus last quarter. EMEA revenue was driven by the 2012 summer Olympics, and increasing business in Eastern Europe and the Middle East.
  • 2012 revenue from the Americas was €36.7m, up 32.7% versus last year on a constant currency basis. EVS said sales in in the Americas were driven by a 67% increase in its studio segment 67% compared to 2011, and new OB vans and upgrades to HD.
  • APAC revenue for the year was €26.6m, an increase of 13% over 2011.    The company attributed its improved performance in Asia to increased demand in South Korea, Australia and China. EVS said that the continued high demand for European sports content in APAC is a long term driver for the region.

 

 

The company ended the year with 463 employees, up 11.6% (or 48 employees) since the end of 2011.  The company says it recruited 25 full-time employees during the fourth quarter of 2012 in order to “accelerate some strategic R&D developments.” EVS says that on average, it had 439 full-time employees in 2012, versus and 386 full-time employees in 2011, a 13.7% increase. One third of the company’s employees are based in one of its 20 global sale offices or development business units.

 

New Corporate Strategy

EVS also unveiled a new corporate strategy whereby it will focus on four key markets: Sports, Entertainment, News and Media.  EVS CEO Joop Janssen said the new strategy will “enable us to better deliver our investments in R&D and product innovation, help drive the expansion of our sales network, and continue to improve our user training and customer support and bring even better products to the market faster.”

The company says that this new strategy, along with a new corporate brand identity will be unveiled at the 2013 NAB show.

The company also announced a new management structure.

 

Outlook for the full year 2012

EVS said that while it is optimistic about its long term prospects, it reiterated its low visibility in the current state of the economy, and cautioned that the €10m of  event rental revenue achieved in 2012 is not repeatable in 2013, which is a “non-big event year.”

The company also said its operating expenses should grow by “a low double digit rate” in 2013, which could translate in lower margins.

EVS says that the second half of 2013 should be better than first half since spending for big sporting events to be held in 2014 will start to be committed at that time.

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Related Content:

Press Release: EVS Reports Record Revenue for 2012

Press Release: EVS announces a new market-focused strategy and vision

Previous Quarter: EVS Q3 2012 Revenue Jumps 32.3 Percent, YTD Revenue Surpasses all of Previous Year

Previous Year: EVS Revenue Declines 3.8% in 2011, But 2012 Order Book Hits Record Levels

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EVS Q3 2012 Revenue Jumps 32.3 Percent, YTD Revenue Surpasses all of Previous Year

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Nov 15 2012

Production and playout video server specialist EVS announced strong revenue and profit for the third quarter of 2012, along with an industry-leading operating margin of almost 50 percent.

Revenue for the third quarter of 2012 was €39.5m, 32.3% higher than the same period a year ago, and down 8% versus the previous quarter.  Excluding currency fluctuations and big event rentals, which are a major revenue driver for EVS, the company said its revenue increased 6.2% versus the third quarter of 2011.

Net profit in the quarter was €12.7m, up 27.4% versus the same period a year ago, and down 20% versus the previous quarter.

EBIT (earnings before interest and tax) in the quarter was €19.3m, up 38.6% compared to the same period last year, and down 17% versus last quarter. The corresponding operating margin for the quarter was 48.8%, up from 46.6% last year, and 54.2% last quarter.

Order intake in the third quarter was up 10.7% versus last year, but decelerated compared to the first six months of the year, due to the usual market slowdown following the big events of this summer.  Through October 2012 orders in the OB segment were up 20.3%, while studio orders increased by 25.8% over the same period.  Studio orders currently represent 65 of the company’s open order book.

Consolidated gross margins for the quarter were 79.4%, versus 81% last year, and 81.2% last quarter.

Operating expenses (R&D, S&A) increased by 18.8% in 3Q12, mainly due to the increased number of new employees, the amortization of a new ERP system, and new top management.

SG&A expenses were €6.17m, up 27% versus last year, and up 9% versus last quarter. R&D expenses were €5.65, up 11% versus last year, and up 10% versus last quarter,

 

Segment Results:

  • Studio revenue in the third quarter of 2012 was €20.3m, up 76% versus last year (up 36.4% on a constant currency basis and excluding big events), and up 18% versus last quarter.  The studio segment accounted for 51% of revenue in the quarter, up from 40.2% last quarter, with outside broadcast (OB) making up the remainder.

 

  • OB revenue in Q3 2012 was €19.m million up 4.6% versus last year (down 11.2% on a constant currency basis and excluding big events), and down 25% versus last quarter.  OB sales represented 48.4% of total sales in 3Q12.

 

Regional Results:

  • Revenue from the EMEA region was €19.5m (49.3% of total revenue), up 16.29% versus last year, and down 17% versus last quarter. EMEA revenue was driven by the 2012 summer Olympics


  • Revenue from the Americas was €11.4m, up 47.8% versus last year on a constant currency basis, and down 10% versus the previous quarter. EVS said this was the second record quarter in a row for Americas revenue, thanks to new innovations for OB customers, increased penetration into the studio segment, and an enlarged product portfolio.

 

  • APAC revenue for the quarter was €8.6m, an increase of 37.7% versus last year, and an increase of 30% versus the previous quarter.    The company attributed its improved performance in Asia to strong business momentum in Japan after unusual weaker 2011, as well as increased demand in South Korea, Malaysia, Australia and mainland China.

 

 

Year-to-Date Results

Revenue for the first nine months of 2012 was €112.3m, up 47.9% versus the first nine months of 2011. Through the first three quarters of 2012, EVS has already surpassed its total revenue for all of 2011.

Net profit for 1H 2012 was €37.4m up 52.3% versus the previous year.

Consolidated gross margin were 79.6%, up from 78.6% last year.

Operating expenses for the first nine months increased by 17.1% due to increased headcount, a new ERP system, and lower R&D tax credits. The operating margin for the first nine months of 2012 was 48.8%, compared to 46.6% last year.

 

 

Outlook for the full year 2012

EVS said that with revenue of approximately €134m already secured for 2012, its sales should grow by more than 25% this year, and that its EBIT profit should be about 40% higher than last year.

The company says that although its current rate of business exceeds previously issued guidance, its management remains cautious in a difficult and competitive environment. Because of seasonality following major sporting events earlier in the year, the company expects its Q4 2012 results to be sequentially lower.

Although 2012 will be a record year for the company, EVS says it has limited visibility for 2013, and remains cautious for uneven year 2013, without major sporting events”.

New EVS CEO Joop Janssen, said he has “started to work on the future vision and strategy plan of the company, with a focus on realizing our growth potential towards the year 2016. The result of this inclusive process will be based on the strong current fundamentals that enabled EVS to become such a successful company. I plan to share this vision in early 2013”.

Company CFO Jacques Galloy, commented: “As expected, this third quarter is again very strong with sales growing by 32.3% to EUR 39.5 million. Summer games were really successful and brought EVS to a next level. Our business grew especially in studios (+76%) and in the Americas (+48% at constant exchange rate) over the quarter. Studio sales benefitted directly from dedicated rentals relating to the Summer games. Higher sales and good cost control led to a higher EBIT margin of 48.8% of sales in 3Q12 compared to 46.6% in 3Q11. Combining 9M12 sales and the order book, we had secured sales for around EUR 134 million at October 31. We confirm record FY12 sales shall exceed +25% growth, despite the expected usual Q4 slowdown following big summer sporting events. EBIT should grow by more than 40% this year.

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Related Content:

Press Release: EVS Reports Third Quarter 2012 Results

Previous Quarter: EVS Revenue Jumps 83 Percent in Record Q2 2012, CFO Calls Quarter “Awesome”

Previous Year: EVS Reports Q3 2011 Results, Issues Strong Guidance

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EVS Revenue Jumps 83 Percent in Record Q2 2012, CFO Calls Quarter “Awesome”

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Sep 03 2012

Production and playout video server specialist EVS announced that its revenue for the second quarter of 2012 was €42.8m, 82.9% higher than the same period a year ago, and up 43% versus the previous quarter.  Excluding currency fluctuations and big event rentals, which are a major revenue driver for EVS, the company said its revenue increased 62% versus the second quarter of 2011

The company’s Q2 2012 revenue includes €3.5m of rentals relating to the Euro football championships, equally split between its studio and outside broadcast (OB) segments.  EVS said that more than 220 of its servers were deployed at the Euro 2012 championships.  In its presentation to equity analysts, the company also described its participation in the 2012 London Olympics, which will be recognized in Q3 2012.

Net profit in the quarter was €15.9m, up 181% versus the same period a year ago. EBIT (earnings before interest and tax) in the quarter was €23.2m, up 183% compared to the same period last year.  The corresponding operating margin for the quarter was 54.2%, up from 35% last year, and 45.1% last quarter.

Consolidated gross margins for the quarter were 81.2%, up from 76.9% last year and up from 77.6% last quarter. The company attributed its margin expansion to higher sales leverage on fixed manufacturing and field support expenses.

Bookings in the second quarter of 2012 quarter were was €37.9m, down from €40.6m last quarter, which was a record for the company.   Orders in the OB segment grew by 34% in 1H12, while orders in the studio segment grew by 32% during the same period. As of August 29, 2012 the company’s order backlog for the remainder of 2012 was €48m, up 31.6% higher than a year ago (up 15% excluding big event rentals).  The company also disclosed that it has already secured €8.4m of orders to be delivered in 2013.

Operating expenses in the quarter increased by 17.5% versus last year due to higher employee headcount and the impact of a one-off R&D tax credit last year. SG&A expenses were €5.66m, up 10% versus last year.  R&D expenses were €5.15, up 27% versus last year.

 

Segment Results:

  • Studio revenue in the second quarter of 2012 was €17.2m, up 79.3% versus last year (up 57.2% on a constant currency basis and excluding big events), and up 42% versus last quarter.  The studio segment accounted for 40.2% of revenue in the quarter, with outside broadcast (OB) making up the remainder.  The company says it has achieved a compounded annual growth rate (CAGR) of 20% in the studio segment since 2006.

 

  • OB revenue in Q2 2012 was €25.6m, an increase of 85.3% versus last year (up 65.6% on a constant currency basis and excluding big events), and up 43% versus the previous quarter.  OB sales represented 59.8% of total sales in 2Q12.

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Regional Results:

  • Revenue from the EMEA region was €23.5m (55% of total revenue), up 146.9% versus last year, and up 34% versus last quarter. 49.5% versus same period a year ago.  The company said that it had €3.5m of rental income in the quarter as a result of the Euro 2012 soccer championships.

 

  • Revenue from the Americas was €12.7m, up 61% versus last year and up 125% versus the previous quarter.  The company said that the US market continues to be driven by upgrades of existing to HD, and the building of new OB vans.


  •  APAC revenue for the quarter was €6.6m, an increase of 10.8% versus last year, and down 3% versus the previous quarter.    The company said that it has seen a recovery in the Japanese market and that majority of its APAC revenue in the quarter came from the OB segment.

 

 

1H 2012 Results:

Revenue for the first six months of 2012 was €72.86m, up 58% versus the first half of 2011.

Net profit for 1H 2012 was €24.6m up 69% versus the previous year.

Consolidated gross margin were 79.7%, up from 77.0% last year due to higher sales volume.

Operating expenses for the first six months increased by 17.1% due to increased headcount and non-recurring tax credit last year.

The operating margin for the first six months of 2012 was 50.4%, compared to 37.3% last year.

 

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Major Capital Project to Consolidate Facilities in New Headquarters Building

The company said it has started the construction on a new €40m headquarters building in order to consolidate its operations, which are currently split between six separate sites. EVS expects this project to be complete during the first half of 2014.

The company said that following the sale of its existing facilities, as well as new subsidies, that the net cost of this project will be approximately €26m.

In order to finance this project, EVS entered into a roll-over straight loan for €14m in July 2012, but due to strong cash generation the company says it has so far financed €6.5m of this project without having to draw from this facility.

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Outlook for 2H 2011

EVS said that with revenue of more than €120m already secured for 2012, its sales should grow by more than 25% this year, and that its EBIT profit should be about 40% higher than last year. However, company management says it remains cautious due to a difficult macroeconomic environment and competitive pressure. Because there are no major sporting events in 2013, the company will not benefit to the same extent from large rental contracts as it did in 2012.  Nevertheless, EVS says its new product introductions could partially offset the market slow-down that typically follows major sporting event years.  As a result EVS says that it expects 2013 to be a good “studio year” for the company, and that it will again benefit from major sporting events in 2014, primarily in emerging markets.

 

Calling the company’s results for the period “awesome,” EVS CFO Jacques Galloy said that Q2 2012 was the best sales quarter in the history of the company. “High market demand for our solutions resulted in a jump of 83% of 2Q12 sales, partially in relation with the Euro soccer 2012 but mainly due to market share gains. This growth is a fact in all our regions and market segments, despite a macro-economic environment that remained uncertain. Higher EBIT margin of 54.2% has been achieved thanks to higher sales leverage and good cost control, even though we continue to reinforce some of our teams in a selective way around the globe. This record first half year, combined with a high order book, anticipates a very strong 2012 year. Even though we expect the usual slow down that follows large sporting events, it is now clear that the second half of the year will be better than anticipated at the beginning of the year with full year sales growing by more than 25% while operating expenses should grow by around 13-16%, implying results growth around 40%. Last, we remain cautious for uneven year 2013, without big sporting events”.

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Related Content:

Press Release: EVS Reports Record Quarter in Q2 2012, Increases Guidance

EVS Q2 2012 earnings presentation to equity analysts

Previous Quarter: EVS Reports Record Revenue and Order Book in Q1 2012

Previous Year: EVS Reports Q2 2011 Results

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EVS Reports Record Revenue and Order Book in Q1 2012

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

Production and playout video server specialist EVS reported that its revenue for the first quarter of 2012 was €30m, an increase of 32.5% versus the same period last year, and an increase of 5% versus the previous quarter.   Excluding impact of exchange rates and large rental contracts, (a large, but lumpy part of EVS’s revenue), the company’s Q1 2012 revenue was up 34.3% versus last year.

In addition to increased revenue in the quarter, EVS also reported that it had grown its order book to a record €53.8m as of May 9, 2012, up 131.5% versus last year.

EVS also disclosed that it will appoint a new CEO in place to replace former CEO Pierre L’Hoest, who left the company last year.

Gross margins for the first quarter were 77.6%, up slightly versus last year, and down by one percentage point from last quarter.

Operating expenses increased by 16.6% versus the first quarter of last year, partially due to increased employee headcount, and one time R&D tax credit. At the end of March 2012, EVS had 428 full time employees, up 14% versus over March 2011.

The company’s higher revenue in the quarter drove EBIT margins to 45.1% in the quarter versus 39.8% last year, and 41.9% last quarter.

 

On a segment basis, 59.6% of revenue in the quarter came from outside broadcast, with the remainder coming from studio.  

Outside broadcast revenue in the quarter was €17.9m, up 58.1% versus the same period ago, and up 18% versus last quarter. The company said the results exceed earlier expectations and attributed the strong performance in the outside broadcast segment to the third tranche of a major Russian deal (€4m) and new outside broadcast vans in various countries not specifically linked to this year events.

Studio revenue was €12.1m, up 7% versus Q1 last year and down 23% versus last quarter.  EVS says it continues to gain market share in the studio segment.

 

On a geographic basis:

  • Revenue from EMEA in the first quarter of 2012 was €17.6m, up 25% last year, representing 59% of group revenue.  
  • Americas revenue for the first quarter of 2012 was €5.65m, up 20.2% versus last year, representing 19% of total revenue.
  • Q1 2012 revenue from the APAC region was €6.8m, up 74.9% versus Q1 of 2011, and represented 23% of total revenue in the quarter.

 

 

EVS said that it expects the first half of 2012 to be “very strong,” and perhaps a record result.  The company says that while it will benefit in 2012 from the Euro Soccer championships, the London Olympics, and the release of new products but also from strong, it will also see significant business not linked to the big events. The company anticipates that its sales will grow more quickly than its expenses in 2012, leading to margin expansion during the year.

EVS CFO Jacques Galloy said that despite a challenging macro environment, the company had shown strong momentum in all regions, due the success of the new XT3 platform, some traction from next summer’s big sporting events in EMEA and the increasing success rate in the studio segment in the Americas.

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Related Content:

Press Release: EVS Reports Revenue and Results for First Quarter 2012

Previous Year: EVS Q1 Revenue Increases 8.7 Percent, Anticipating Strong Second Half of 2011

Previous Quarter:  EVS Revenue Declines 3.8% in 2011, But 2012 Order Book Hits Record Levels

EVS CEO Pierre L’Hoest Steps Down

© Devoncroft Partners. All Rights Reserved.

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EVS Revenue Declines 3.8% in 2011, But 2012 Order Book Hits Record Levels

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 16 2012

Production and playout video server specialist EVS reported that its revenue for the full year 2011 was €106.9m, down 3.8% versus last year.  

Despite the year-over-year revenue drop, the company said that its order book had reached a record €46.1m by the end of 2011, driven in part by a new investment cycle from OB truck operators and in anticipation of many large sporting events in 2012, including the Olympics

EVS typically performs better in “even” years when major sporting events drive a sharp increase in the company’s rental business.

 

Q4 2011 Results

For the fourth quarter of 2011 EVS revenue was €31m, an increase of 15.3% versus the same period a year ago, and up 22.7% excluding impact of exchange rates and large rental contracts, which are a major driver of the company’s business.

Gross margins for the fourth quarter were 78%, up from 76.6%, last quarter, but lower than the 81% reported last quarter.  The company attributed the higher year-over-year gross margin performance to higher sales.

Operating expenses increased by 30.5% in the fourth quarter partially due to increased employee headcount, costs associated with the departure of former CEO Pierre L’Hoest and a higher R&D tax credit in the fourth quarter of the previous year.

The company’s higher operating expenses in the quarter impacted its operating margins (EBIT), which dropped to 41.9% in the quarter, versus 43.9% last year and 46.6% last quarter.

On a segment basis, revenue was split fairly evenly between studio (51%) and outside broadcast (49%). Studio revenue was €15.83m, up 16.4% versus Q4 last year and up 37% versus last quarter.  Outside broadcast revenue was €15.13m, up 14.2% versus last year, and down 17% versus last quarter.

 

On a geographic basis:

  • Revenue from the EMEA region was €17.7m, up 7.7% versus last year and up 5% compared to last quarter

 

  • Revenue from the Americas region was €6.1m, up 46.7% versus last year and down up 11% versus the previous quarter.

 

  • APAC revenue for the quarter was €7.23m, an increase of 14.6% versus last year, and up 17% versus last quarter. 

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Full Year Results

For the year 2011, EVS revenue was €106.9m, down 3.8% versus last year, but up 6.3% excluding the impact of big event rentals and currency fluctuations. 

Full Year gross margins were 78.4%, down slightly from 2010 due to lower sales levels absorbing fixed assembling and support costs.

Operating expenses jumped 21.6% in FY11, due to increased headcount and higher commercial fees for distributors, but partially offset by the positive effect of a €1.1m R&D tax credit. 

The company invested heavily in personnel during 2011. On the company’s conference call with analysts, EVS said its full time employee roster had increased 13.4% to 415 at the end of 2011.  Included in this is a 51% increase in R&D staff.

As a result of these increased expenses the company’s operating (EBIT) margin fell to 41.3% of versus 50.0% in 2010.

Higher expenses also impacted the company’s net profit, which declined 15.7% versus 2010 to €32.1m. Excluding the company’s XDC digital cinema business net profit for the year was €31.7m for the year.

On a segment basis, revenue from studio declined 12.9% versus the previous year to €48.34m, or 45.2% of total revenue for the year.  OB revenue increased 5.2% versus FY 2010 to €55.7m, or 54.8% of total revenue.  Revenues in FY11 included €0.8m of rentals relating to the Winter Asian Games and to the Panam Games, compared to €10.2m in 2010.

 

On a geographic basis:

  • Revenue from EMEA in 2011 was €57.8m, down 5.1 versus 2010, representing 54.1% of group revenue. The company said that the UK, Eastern Europe and the Middle East were clear drivers of the business in 2011, and that it expects this to continue thanks to a major OB deal with Panorama in Russia as well as a large unnamed studio project in Eastern Europe.

 

  • Americas revenue for 2011 was €25.5m, down 7.8% versus 2010. EVS said that new OB vans and upgrades to HD continue to drive the business in the Americas in OB segment, but that the studio segment was weaker in 2011 than 2010.

 

  • 2011 revenue from the APAC region was €23.5m, up 11.3% versus 2010.  The company said that 11.3%). Malaysia, China and South Korea the most dynamic markets during the year, citing the continued high demand for European sport content on TV in APAC as a long term growth driver in the region.

 

Company CFO Jacques Galloy issued a mildy optimistic statement, saying: “As expected, sales in 4Q11 were higher, which allows us to record, for FY11, nearly stable sales, actually lower by 3.8% to €106.9m. The lower 41.3% EBIT margin is due to the increasing cost base as a result of additional employees during this year. We are very enthusiastic about our record order book, which prepares for a strong first half of 2012, partially driven by big sporting events. The second half of the year is more uncertain, and should be impacted by the usual market slow down following big events, the timing of the launch of expected solutions, and the macro-economic environment.”

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Related Content:

 .

Press Release: EVS Reports Revenue and Results for 2011

EVS Q4 and Full Year 2011 Analyst Presentation

Previous Quarter: EVS Reports Q3 2011 Results, Issues Strong Guidance

Previous Year: EVS Posts Record Revenue in 2010, Driven by Improving Market Conditions and Global Move to HDTV

EVS CEO Pierre L’Hoest Steps Down

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© Devoncroft Partners. All Rights Reserved.

 

 

 

EVS Reports Q3 2011 Results, Issues Strong Guidance

broadcast technology market research, Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Nov 10 2011

Production and playout video server specialist EVS reported that its revenue for the third quarter of 2011 was €29.8m, a decline of 10.2% versus the same period a year ago, and an increase of 27% versus the previous quarter.   Excluding currency fluctuations and big event rentals, which are a major revenue driver for EVS, the company said its revenue decreased just 1.6% versus the same period a year ago.

Gross margins for the quarter were 81.0% for 3Q11, slightly lower than 3Q10, , but up from 76.9%, last quarter. The company attributed the dip in gross margins to lower sales absorbing fixed assembling and support costs.

Operating expenses increased by 11.4% in 3Q11, partially as a result of the increased number of new employees at EVS. Due to lower sales and higher opex, the operating (EBIT) margin fell to 46.6% of revenue, compared to 55.0% in during the same period last year, and 35% last quarter.

On a segment basis, studio represented 38.7% of revenue, with outside broadcast making up the remainder. Studio revenue was €11.53m, up 1.3% from €11.4m last year and up 20% versus last quarter.  Outside broadcast revenue was €18.3m, down 16.3% versus last year, and up 33% versus last quarter. Revenues in 3Q10 included €2.3m of rentals relating to the World Cup and the Youth Olympic Games.

On a geographic basis:

  • Revenue from the EMEA region was €16.8m, down 3.9% versus last year and up 77% compared to last quarter.  The company said that the UK, Eastern Europe and the Middle East are clear drivers of the business in 2011. For the first 9 months of 2011, EMEA sales were €40.2m, down 9.8% versus the same period in 2010.

 

  • Revenue from the Americas region was €6.8m, down 17.9% versus last year and down 16% versus the previous quarter. The company said that US market continues to be driven by upgrades of existing to HD, and the building of new OB vans. For the first nine months
    of the year, the company’s revenue in the Americas was €19.5m, down 21.9% versus the same period last year.

 

  • APAC revenue for the quarter was €6.2m, a decrease of 6.6% versus last year, and up slightly versus last quarter.  For the first nine months of the year, APAC revenue increased by 9.9% to €16.3m.

 

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Year-to-date Results

For the first nine months of the year, EVS revenue was €75.9 million, down 9.9% versus last year, but up 1% excluding the impact of big event rentals and currency fluctuations.  YTD gross margins were 78.6% for versus 80.6% last year.  Operating margins for the first nine months of 2011 were 41.0%, down from 51.9% last year due mainly to lower sales.

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EVS CFO Jacques Galloy said: “In 3Q11, sales amounted to €29.8m, leading to slightly higher sales in the first nine months of 2011 at constant exchange rate and excluding the big event rentals. As anticipated, the operating margin improved sequentially to 46.6%, mainly thanks to higher revenues and despite our investment in innovation as our operating expenses increased by +11.4% in 3Q11 vs.3Q10. Recently, we confirmed the largest deal in the history of EVS, with more than €10 million for the equipment of 12 OB vans in Russia. We also signed the rental contract for the Olympic Games in London next year. The Board confirms 2011 sales to near 2010 record before a stronger 2012.”

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Related Content:

Press Release: EVS  REPORTS REVENUE AND RESULTS FOR 3Q11

EVS Q3  2011 earnings presentation to equity analysts

EVS CEO Pierre L’Hoest Steps Down

Previous Quarter: EVS Reports Q2 2011 Results

Previous Year: EVS Q3 2010 Revenue up 69.4%, Delivers 55% Operating Margins

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EVS CEO Pierre L’Hoest Steps Down

Broadcast technology vendor financials | Posted by Joe Zaller
Sep 30 2011

Production and playout video server specialist EVS announced that Pierre L’Hoest, the company’s co-founder and CEO has left the company.

Here is the full statement:

 

Liège (Belgium), September 29, 2011 – EVS Broadcast Equipment S.A. (Euronext Brussels: EVS.BR, Bloomberg: EVS BB, Reuters: EVSB.BR) (Pinksheets: EVBEF), the leader in Professional Digital Video applications for live, near-live and studio TV production, today announced the departure of Pierre L’Hoest, Managing Director and CEO. Following his departure, the Board of Directors has modified the composition of the Executive Committee, now composed of Michel Counson, Jacques Galloy and Luc Doneux. Under the leadership of Pierre Rion President of the Board, the Executive Committee will manage the technical, commercial, operational, corporate and financial functions of EVS, pending the announcement of a new management structure in early 2012.

 

On Thursday, September 29, 2011, the Board of Directors has taken note of the end of the mandates and functions of Pierre L’Hoest (and of his company Belinvest S.A.), including that of Managing Director of the company he founded with Laurent Minguet and Michel Counson, a position he held since 1994.

 

EVS has experienced a rapid growth and significant success in new market segments, which has doubled the workforce in the last 3 years, both at the headquarters in Liege and abroad. It is this impressive growth and prospects for the coming years that required a new system of governance. Since 2009, Pierre L’Hoest, the Board of Directors, and management of EVS have initiated a significant project to adapt the structure of EVS to allow the company to have all the advantages it needs for this new phase of growth. The establishment of the new team is a step in this process.

 

The entire Board of Directors wishes to thank Pierre L’Hoest for the passion he has brought throughout his engagement with EVS, since its inception“, said Pierre Rion, President of the Board of Directors of EVS. “His vision for the products and on-going concern for ergonomic applications have strongly driven the success of EVS. The newly implemented Executive Committee, which includes the presence of Michel Counson and managers who have proven themselves, allow us to envisage the succession of Pierre L’Hoest with confidence. I will personally undertake the link between the Executive Committee and the Board of Directors.”

 

Michel Counson, Managing Director and Co-founder of EVS, assumes the function of Chief Technical Officer (CTO).  Jacques Galloy assumes the roles of Director and Chief Financial Officer (CFO). Luc Doneux assumes the role of Head of EMEA, APAC & Major Events.

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Related Content:

Press Release: EVS Reports Revenue and Results for 2Q11 and 1H11

EVS Q2 2011 earnings presentation to equity analysts

Previous Quarter: EVS Q1 2011 Revenue Increases 8.7 Percent, Anticipating Strong Second Half of 2011

Previous Year: EVS Reports Strong Q2 2010 Results: Revenue up 61.2%, Operating Margins of 52.4%

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EVS Reports Q2 2011 Results

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Aug 26 2011

Production and playout video server specialist EVS reported that its revenue for the second quarter of 2011 was €23.4m, slightly higher than the previous quarter, but 22.4% lower than the same period a year ago. Excluding currency fluctuations and big event rentals, which are a major revenue driver for EVS, the company said its revenue decreased 8.1% versus the same period a year ago.

Gross margins for the quarter were 76.9%, down slightly versus both last year and last quarter. The company attributed the dip in gross margins to lower sales absorbing fixed assembling and support costs.

Operating expenses in the quarter increased by 2.15% versus last year due to higher costs associated with the NAB trade show, and increased investments in R&D and customer support.

Operating margins for the quarter were 35%, down from 52.4% in 2Q10, and 39.8% last quarter.

On a segment basis, studio represented 41% of revenue, with outside broadcast making up the remaining 59%.  Studio revenue was €9.6m, down 44% versus last year, while outside broadcast revenue was €13.8m up 5.6% versus the same period a year ago. The company generated €3.6m of world cup-related rental revenue in the quarter, which was split evenly between the studio and outside broadcast segments.

On a geographic basis:

  • Revenue from the EMEA region was €9.5m (41% of total revenue), down 49.5% versus same period a year ago.  The company said the UK and eastern European markets were particularly strong during the quarter.  For the first half of the year, EMEA revenue declined 17.5% versus the same period last year.

 

  • Revenue from the Americas was €7.9m, up 14.4% versus last year and up 68% versus quarter.  The company said that the US market continues to be driven by upgrades of existing to HD, and the building of new OB vans. For the first of the year, Americas revenue declined 13.1% versus the same period year.

 

  • APAC revenue for the quarter was €6m, an increase of 70.1% versus last year, and and increase of 46% versus the previous quarter.   The company said it had a variety of wins in the region including Malaysian operator Astro.  For first half of the year, APAC revenue increased by 23.4% to €10m.

 

Outlook for 2H 2011

EVS management remains positive about the remainder of the year. Company CFO Jacques Galloy said that the company’s order book “looks promising thanks to very strong May and June months. Hence, the Board remains confident that, for 2011, revenue could equal the record level of 2010, even though this is an odd year, without any major event, which represented more than EUR 10 million of rentals in 2010.”

The company says it’s well positioned to take advantage of key macro trends in the broadcast industry including the worldwide migration from tape-based operations to integrated tapeless workflows, the ongoing transition to HDTV operations, and the increasing number of video distribution channels.

Based on these long term drivers, the company says it expects to be able to continue to grow its business and increase market share over the coming years.

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Related Content:

Press Release: EVS Reports Revenue and Results for 2Q11 and 1H11

EVS Q2 2011 earnings presentation to equity analysts

Previous Quarter: EVS Q1 2011 Revenue Increases 8.7 Percent, Anticipating Strong Second Half of 2011

Previous Year: EVS Reports Strong Q2 2010 Results: Revenue up 61.2%, Operating Margins of 52.4%

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