Posts Tagged ‘Martin Burkhalter’

Despite Continued Weakness in Europe, Vizrt Reports Growth and Improved Margins in Q2 2013

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Aug 13 2013

Vizrt reported that its revenue for the first quarter of 2013 was $31.7m, up 5% versus the same period a year ago, and up 17% versus the previous quarter.

Although the company says it continues to see softness in the European market, it had strong performances in both the Americas and APAC during the quarter.

“Considering the continued softness we experienced in our largest market, we are very pleased to have returned to growth,” said Vizrt CEO Martin Burkhalter. “Growth was driven by a strong performance for both the Americas and APAC. Growth was offset partially by continued weakness in Europe, which saw revenues decline by 9% compared to Q2 2012.

Gross margins for the second quarter of 2013 were 67%, up from 66% last year, and up from 65% last quarter.  In its earnings presentation, the company said it took a charge of $300,000 in the quarter for the amortization of intangible assets related to acquisitions.  Excluding these charges, gross margin for the quarter would have been 68%.

Vizrt management said it was able to improve its margins, despite challenging market conditions, because of the company’s “premium offering which helps customers realize their strategic objectives and add value by improving workflow efficiencies.”

Operating expenses for the quarter were $16.17m, up 1% versus last year, and up 4% versus the previous quarter. The company said it is continuing to focus on cost control, even as it increases its top

  • R&D expenses in the quarter were $4.8m (15% of revenue), up 3% versus the same period ago, and down 4% versus the previous quarter

 

  • Sales and marketing expenses in the quarter were $8.57m (27% of revenue), flat with the previous quarter and up 11% versus the previous quarter

 

  • General and administrative expenses in the quarter were $2.8m (9% of revenue), up 3% versus the same period a year ago, and up 1% versus the previous quarter.

 

EBITDA was $6.1m for the quarter, up 12 from $5.44m last year, and up 95% from $3.1m in the previous quarter.   The EBITDA margin for the quarter was 19% versus an EBITDA margin of 18% last year and 12% last quarter.

Net profit for the quarter was $3.6m, compared to a net loss of $3.75m last year, and up 204% versus last quarter’s net profit of $1.18m.

 

Product Line Results for the Quarter:

  • Broadcast Graphics (BG) accounted for $24.9m during the quarter (78% of total revenue versus 81% last quarter), an increase of 8% versus the same period ago, and an increase of 14% versus the previous quarter. The BG order backlog was $28.8m, up 9% versus last year, and up 7% versus the previous quarter.

 

  • Media Asset Management (MAM) revenue in the quarter was $5.66m (18% of total revenue versus 16% last quarter), up 5% versus the same period a year ago, and up 35% versus last quarter.   The MAM order backlog was $17.8m, down 1% versus last year, and down 1% versus last quarter

 

  • Online & Mobile (OLM) revenue in the quarter was $1.16m (3% of total revenue), down 32% versus last year, and up 33% versus last quarter.  The OLM order backlog was $3.7m, down 6% versus last year, and up 5% versus the previous quarter.

 

 

Geographic Performance for the Quarter:

Vizrt said it continued to experience weakness in the European market during the quarter, but that the Americas and APAC did well.

  • Revenue from EMEA was $13.6m (43% of total revenue versus 41% last quarter), down 9% versus the same period last year and up 22% versus last quarter

 

  • Americas revenue was $9.2m (29% of total revenue versus 35% last quarter), up 26% versus last year, and down 1% versus last quarter.

 

  • APAC revenue was $8.95 (28% of total revenue versus 24% last quarter), up 13% versus last year, and up 17% versus last quarter

 

The company ended the quarter with 590 employees, up from 582 last quarter, and $74.2m in cash, down 6% versus last quarter.

 

“We believe that the strategic nature of our product offering, in helping customers achieve financial and strategic objectives, puts our products in the “must have” premium category, which has allowed us to defend and grow margins,” said Burkhalter. “Both the 8% solid growth in BG and the 5% growth in MAM compared to Q2 2012 were driven by our global presence, and our ability to react to local economic trends, as witnessed in the Americas and APAC. The media landscape is very dynamic, and broadcasters need to invest in order to protect their competitive position.”

 

Results for first half of 2013

Vizrt’s revenue for the first six months of 2013 was $58.7m, down 5% versus the first half of 2012.

The net profit for the first half of the year was $4.8m, versus a loss of $2.2m for the first six months of 2012.

EBITDA for the first half of 2013 was $9.2m, down 16% versus the same period last year.  The EBITDA margin for the first half of 2013 was 16%, compared to 18% for the first half of 2012.

Gross margins for the first half of the year were 67%, down from 68% in H1 2012.

Operating expenses for the first six months of 2013 were $31.7m, down 4% versus the first six months of the previous year.

 

Business Outlook:

In its investor presnetaion, the company said “we believe that the European market will continue to be soft into H2 2013, but we anticipate this weakness to be more than offset by the relatively robust markets in APAC and the Americas, resulting in continued overall growth. We will continue to strengthen our technological and strategic leadership, while at the same time maintain our financial prudence and discipline.”

“For the coming months we foresee continuing weakness in the European market where broadcasters are investing on a strict “need to have” basis, said Burkhalter.” We anticipate this weakness to be more than offset by the relatively robust markets in APAC and the Americas. We believe that our global presence, and regionalized distribution and support capabilities will allow us to capitalize on these region specific opportunities, resulting in continued overall growth. We will continue to strengthen our technological and strategic leadership, while at the same time maintain our financial prudence and discipline.”

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Related Content:

Press Release: Vizrt Reports H1 and Q2 2013 Results

Vizrt Q2 2013 Investor Presentation

Previous Quarter: Vizrt Q1 2013 Revenue Declines 15 Percent Due to Weakness in Europe

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

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Vizrt Q1 2013 Revenue Declines 15 Percent Due to Weakness in Europe

broadcast technology market research | Posted by Joe Zaller
May 09 2013

Vizrt reported that its revenue for the first quarter of 2013 was $27m, down 15% versus the same period a year ago, and down 11% versus the previous quarter.

The company said that market and economic conditions in Europe continue to be difficult, attributable mainly to falling domestic demand for goods and services and lower exports, and that this general weakness strongly affected the company’s sales in the EMEA region during the quarter.

Gross margins for the first quarter of 2013 were 65%, down from 67% last year and down from 70% last quarter.  In its earnings presentation, the company highlighted the fact that its gross have remained “relatively stable,” despite declining revenue.  Company management said this was due to a “shift in product mix towards higher margin broadcast graphics activities, and by a continued focus on cost control.”

Operating expenses for the quarter were $15.5m, down 9% versus last year due to cost control measures that the company has had in place for several quarters. The company said that OpEx was kept at a similar level to the 2012 average quarterly run rate, leading to continued profitability and cash generation from operating activities, though at lower levels. Specifically:

  • R&D expenses in the quarter were $5m (19% of revenue), down 2% versus the same period ago, and up 31% versus the previous quarter

 

  • Sales and marketing expenses in the quarter were $7.7m (29% of revenue), down 14% versus the same period a year ago, and down 1% versus the previous quarter

 

  • General and administrative expenses in the quarter were $2.8m (10% of revenue), down 8% versus the same period a year ago, and up 4% versus the previous quarter.

 

EBITDA was $3.1m for the quarter, down 44% from $5.6m last year, and down 65% versus the previous quarter.   The EBITDA margin for the quarter was 12% versus and EBITDA margin of 18% last year and 29% last quarter.

Net profit for the quarter was $1.18m, down 45% versus the same period a year ago, and up 28% versus the previous quarter.

 

Product Line Results for the Quarter:

  • Broadcast Graphics (BG) accounted for $21.9m during the quarter (81% of total revenue), a decline of 12% versus the same period ago, and a decline of 7% versus the previous quarter. The BG order backlog was $26.8m, up 7% versus last year, and up 6% versus the previous quarter. The company said that broadcast graphics performed in-line with its expectations.

 

  • Media Asset Management (MAM) revenue in the quarter was $4.2m (16% of total revenue), down 12% versus the same period a year ago, and down 7% versus last quarter. The company said that MAM was strongly affected by uncertainties in Europe. The MAM order backlog was $18,5m, down 12% versus the same period a year ago, and up 1% versus the previous quarter. Vizrt management said there has been a “further lengthening of investment decision-making cycles” for MAM deployments, especially for larger projects.  Vizrt said it has not lost MAM deals, instead projects have been postponed or are still under negotiation, and therefore still in the company’s MAM pipeline.

 

  • Online & Mobile (OLM) revenue in the quarter was $876,000 (3% of total revenue), down 44% versus last year and down 31% versus last quarter.  The OLM order backlog was $3.7m, down 6% versus last year, and up 5% versus the previous quarter. The company said that ONM performance “continues to be below expectations and, as announced on April 30, 2013, an additional impairment charge of MUSD 3.0 for 2012 was recorded, following which no goodwill or intangible assets remain on Vizrt’s balance sheet in relation to the Escenic acquisition.”

 

Geographic Performance for the Quarter:

Vizrt had a rough quarter in EMEA, traditionally its strongest market, but this weakness was offset partially by a strong performance from the Americas region.

  • Revenue from EMEA was $11.1m (41% of total revenue), down 38% versus the same period last year and down 20% versus last quarter

 

  • Americas revenue was $9.4m (35% of total revenue), up 32% versus last year, and up 18% versus last quarter.  The company said that “although certain macro-economic conditions in the U.S., such as reduced government spending, have had a somewhat dampening effect on GDP development, overall the region posted solid economic growth.”

 

  • APAC revenue was $6.5 (24% of total revenue), down 3% versus last year, and down 23% versus last quarter

 

The company ended the quarter with 582 employees, up from 575 last quarter, and $77.86m in cash, down 1% versus last quarter.

 

Outlook

The company said that despite economic uncertainties, it continues to see a number of positives in the market. Though management expects the economic uncertainties to continue affecting the business climate into 2013, it still believes that the second half of the year will start to show an improvement in the global economy in general, and bring a return to growth for Vizrt.  Focus for 2013 will remain on cost control, without compromising the company’s ability to innovate and support our strategic growth ambitions.

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Related Content:

Press Release: Vizrt Reports Q1 2013 Results

Vizrt: Q1 2013 Earnings Call Presentation

Broadcast Vendor M&A: Vizrt Buys Remaining Shares of LiberoVision

Previous Quarter: Vizrt Posts Lower Revenue, but Higher Margins and Profit in Q4 and Full Year 2012

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

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Broadcast Vendor M&A: Vizrt Buys Remaining Shares of LiberoVision

Broadcast Vendor M&A | Posted by Joe Zaller
Feb 28 2013

Vizrt announced that it has closed the third and final tranche of the acquisition of virtual sports enhancement technology provider LiberoVision.  Following the closing of the deal, Vizrt will own 100% of the outstanding share capital of LiberoVision.

The purchase price for this transaction was $2.4m, comprised 80% cash ($1.9m) and 20% Vizrt stock (135,908 shares), and was based on a previously announced earn-out formula whereby Vizrt would  pay  20% of ten times LiberoVision 2012 EBIT.

In total, Vizrt paid $10.4m for LiberoVision.

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Related Content:

Press Release: Vizrt closes third tranche of LiberoVision AG acquisition

Vizrt Posts Lower Revenue, but Higher Margins and Profit in Q4 and Full Year 2012

More Broadcast Vendor M&A: Vizrt Acquires Additional 20 Percent of LiberoVision

More Broadcast Vendor M&A: Vizrt Acquires Sports Replay Provider LiberoVision AG

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Vizrt Posts Lower Revenue, but Higher Margins and Profit in Q4 and Full Year 2012

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

Broadcast graphics and media asset management (MAM) provider Vizrt reported that its revenue for the fourth quarter of 2012 was $30.3m, down 9% versus the same period a year ago, and up 2% versus the previous quarter. 

The company attributed the revenue decline to weakness in the European market.

On an operating basis, the company posted a profit of $5.6m, down 22% from last year, and up 30% versus last quarter.

Despite the lower top line number, the company’s EBITDA for the fourth quarter of 2012 was $8.9m, flat with last year and up 51% versus last quarter.   The translates to an EBITDA margin for the quarter of 29% versus 27% last year and 20% last year.

Gross margins for the fourth quarter of 2012 were 70%, up from 69% last year, and 66% last quarter.

Operating expenses for the quarter were $14.28m, down 11% versus last year, and down 6% versus last quarter.

R&D expenses in the quarter were $3.84m, down 19% versus last year, and down 14% versus the previous quarter.

Sales and marketing expenses in the quarter were $7.76m, down 3% versus last year, and down 4% versus the previous quarter.

G&A expenses in the quarter were $2.68m, down 17% versus last year, and down 1% versus the previous quarter.

The order backlog at the end of the quarter was $47.1m, up 2% versus the same period a year ago, and down 1% versus last quarter.

The company ended the fourth quarter of 2012 with 575 employees, compared to 585 last quarter, and 575 last year The company said that the year-over-year decrease in headcount is due to the its strict recruitment policy in 2012, which limited both replacements and new recruitments.

At the end of the quarter, Vizrt had no debt and $78.9m in cash, up from $73.1m last year, and $75.4m last quarter.

 

Product Line Results for the Quarter:

  • Broadcast Graphics (BG) revenue in the quarter was $23.6m (78% of total revenue), down 12% versus last year and up 4% versus last quarter.  The BG order backlog was $25.3m, up 1% versus last year, and up 2% versus last quarter.

 

  • Media Asset Management (MAM) revenue in the quarter was $5.4m (18% of total revenue), up 12% versus the same period a year ago, and down 7% versus last quarter. The MAM order backlog was $18.3, up 9% versus the same period a year ago, and down 3% versus last quarter.

 

  • Online & Mobile (OLM) revenue in the quarter was $1.3m (4% of total revenue), down 29% versus last year and up 16% versus last quarter.  The OLM order backlog was $3.5m, down 24% versus last year, and down 10% versus last quarter.

 

Geographic Performance for the Quarter:

  • Revenue from EMEA was $13.9m (46% of total revenue), down 25% versus last year and up 2% versus last quarter.

 

  • Americas revenue was $8m (26% of total revenue), up 3% versus last year, and flat versus last quarter

 

  • APAC revenue was $8.4 (28% of total revenue), up 19% versus last year, and up 5% versus last quarter

 

Full Year Results:

Revenue for the full year 2012 was $121.8m, a decline of 3% versus 2012, which was a record revenue year for the company.

Gross margins for the year were 67%, up from 66% in 201, and 62% in 2010.

EBITDA for 2012 was $25.8m, up from $24.9m in 2011. This translates to an EBITDA margin of 21%, up form 20% in 2011.

Full year 2012 R&D expenses were $18.08m, down 6% versus last year. R&D as a percentage of revenue was 15%, the same as in both 2012 and 2011. Sales and marketing expenses in 2012 were $33.36m, down 1% versus 2012. Sales and marketing expenses in 2012 were 27% of revenue. G&A expenses for the year were $11.18m, down 2% versus last year.  This equates to 9% of revenue.

EBITDA for the full year 2012 was $25.8m 24.9m (21%), an increase from $24.9m (20%) in 2011, and up from $16.1m in 2010 (15%).

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Product Line Results for the Full Year:

  • Broadcast Graphics revenues for 2012 were $94.3m or 77% of total revenues.  2012 revenue from broadcast graphics was down 3% versus 2011, but remained constant as a percentage of revenue.
  • MAM revenues for 2011 were $21.9m, up 7% versus 2011.  MAM sales accounted for 18% of total revenue in 2012, up from 15% of revenue in 2011.
  • Online & mobile revenue for 2011 was $5.7m, down 32% versus 2011. This equates to 5% of total revenues, down from 8% of revenue in 2011.

 

Geographic Performance for the Full Year:

The company said that revenue in both the Americas and APAC regions increased 9% versus 2011.  However, 2012 revenue from EMEA declined 13% versus the previous year.

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Business Outlook:

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

Martin Burkhalter, Vizrt CEO, commented on the results: “Despite tough market conditions in Europe in 2012, we were able to conclude the year with nearly flat revenues compared to last year, as well as improving our margins. The decline in revenues was due to the continued market weakness in Europe, where macro-economic related uncertainties resulted in substantially longer investment decision cycles, especially with regards to larger projects. Although these effects weigh on the global business environment, we managed to increase our sales in APAC and The Americas.”

“Our margin improvement is the direct result of a strong focus on cost control, as well as an improvement of our gross margins. Despite our focus on cost control, we have not compromised our capabilities to implement our strategic objectives and further development of the company, maintaining our innovative edge, and offering prime products and services enabling our clients in achieving high quality and workflow efficient content distribution and channel differentiation.”

“As to our product lines, BG has been relatively stable. Notwithstanding the difficult market conditions we recorded further growth in MAM. We feel that broadcasters and other content owners are recognizing the importance of a file based workflow and the value of extending and expanding the economic life and usability of media assets. We expect broadcasters to continue to invest in this area and we therefore see an even stronger upside for this product line once there is a more sustainable global economic recovery. Performance of our Online business was below expectations. This product line is strongly affected by the uncertainties in the macroeconomic environment.”

“We see ourselves returning to our earlier communicated 13% target revenue growth, mid- to long-term. For 2013 we anticipate growth, though in the mid to high single digit range. Growth will come predominantly from The Americas and APAC, with Europe expected to show a modest recovery in the second half of the year. For 2013 we will maintain our focus on cost control, though as said, without compromising the strength of our organization, and we will continue to invest in expanding our product and market leadership position.”

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Related Content:

Press Release: Vizrt Reports Q4 and 2012 Results

Vizrt Q4 and Full Year 2012 Analyst Presentation

Previous Quarter: Vizrt Grows Operating Margin Despite Lower Revenue in Q3 2012

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

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Vizrt Grows Operating Margin Despite Lower Revenue in Q3 2012

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Nov 18 2012

Broadcast graphics and media asset management (MAM) provider Vizrt reported that its revenue for the third quarter of 2012 was $29.6m, down 7% versus the same period a year ago, and a decline of 2% versus the previous quarter.

Net income for the third quarter of 2012 was $3m, compared to net income of $3.3m last year, and a net loss of $4.4m last quarter, when the company took a $7.8m non-cash impairment charge relating to the 1998 purchase of Escenic.

On an operating basis, the company posted a profit of $4.3m, up 14% from last year, and up 12% versus last quarter.

EBITDA for the third quarter of 2012 was $5.9m, up 5% versus last year and up 8% versus last quarter.   The EBITDA margin for the quarter was 20% versus 18% last year and 18% last year.

Gross margins for the third quarter of 2012 were 66%, flat with last year last quarter.

Operating expenses for the quarter were $15.265m, down 12% versus last year, and down 5% versus last quarter.

The order backlog at the end of the quarter was $47.8m, down 2% versus the same period a year ago, and down 2% versus last quarter.

The company ended the third quarter of 2012 with 575 employees, compared to 582 last quarter, and 591 last year, The company said the headcount reduction is primarily the result of strict recruitment policy.

At the end of the quarter, Vizrt had no debt and $75.4m in cash, up from $73.1m last year, and $69.6m last quarter.

 

Product Line Results for the Quarter:

  • Broadcast Graphics (BG) revenue in the quarter was $22.7m (77% of total revenue), down 12% versus last year and down 2% versus last quarter.  The BG order backlog was $24.9m, up 1% versus last year, and down 6% versus last quarter.

 

  • Media Asset Management (MAM) revenue in the quarter was $5.8m (20% of total revenue), up 35% versus the same period a year ago, and up 8% versus last quarter. The MAM order backlog was $18.9, down 4% versus the same period a year ago, and up 5% versus last quarter.

 

  • Online & Mobile (OLM) revenue in the quarter was $1.1m (4% of total revenue), down 34% versus last year and down 36% versus last quarter.  The OLM order backlog was $4m, down 6% versus last year, and up flat with versus last quarter.

 

Geographic Performance for the Quarter:

The company said that “the economic slowdown in most Euro zone countries continued to impact our results. The Americas and APAC regions, however, recorded growth.”  Specifically:

  • Revenue from EMEA was $13.6m (46% of total revenue), down 23% versus last year and down 9% versus last quarter.

 

  • Americas revenue was $8m (27% of total revenue), up 19% versus last year, and up 9% versus last quarter

 

  • APAC revenue was $8 (27% of total revenue), up 8% versus last year, and up 1% versus last quarter

 

Year-to-date Results

Vizrt’s revenue for the first nine months of 2012 was $91.5m, essentially flat versus the first nine months of 2011.

Net income for the first nine months of 2012 was $800,000, down significantly from net income of $10m for the first nine months of 2011. Year-to-date net income was impacted by a Q2 2012  non-cash impairment charge of $7.8m relating to the 1998 purchase of Escenic.

EBITDA for the first nine months of 2012 was $16.9m, up 6% versus the same period last year.  The year-to-date EBITDA margin was 18%, compared to 17% last year.

Gross margins for the nine months of the year were 66%, up from 65% last year.

Operating expenses for the first nine months of 2012 were $48.33, flat with last year.

 

Business Outlook:

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

Martin Burkhalter, Vizrt CEO, commented on the results: “As discussed at the time of our Q2 release, we continue to experience challenging market conditions.  The uncertainties in the general economic environment, most notably in Europe, have led to a lengthening of investment decision making cycles.  Against this background, we recorded revenues nearly equal to last year’s first nine months, and down 7% compared to Q3 of last year.  Furthermore, we have managed to improve our margins, with EBITDA and EBIT coming in at 20% and 15%, of revenues respectively, for the quarter.”

“Product wise, performance this past quarter was backed by a strong showing in MAM, especially in APAC, whereas BG slightly increased Y-o-Y.  Revenues for ONL suffered, down significantly, which is to be expected as media houses are less likely to make what they would regard as non-core investments in times of uncertainty. For the regions, the main weakness, as expected, was in Europe, while the U.S. posted growth both Year on Year and Quarter on Quarter.”

“Despite the experienced softness in the market, we managed to increase our cash position to over $75m, a nearly $6m increase for the quarter.  We believe these figures show the depth and strength of our offering.”

“Another evidence to the strength of our offering is that Vizrt was once again the vendor of choice for broadcasters looking to capture audiences in relation to the U.S. presidential elections. In the United States alone, six national networks and more than 150 local channels covered the election with Vizrt tools – more than ever before.”

“Going forward, we expect that the general economic environment will continue to influence market conditions and prolong decision making cycles, especially in Europe.  However, our healthy backlog together with our strong product offering, give us the confidence that we should be capable of delivering a solid result for the full year, despite the challenging market conditions”.

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Related Content:

Press Release: Vizrt Reports 9 Months and Q3 2012 Results

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

Previous Year: Vizrt Reports Q3 2011 Results

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

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

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

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

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

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

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

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

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

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

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

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

 

Product Line Results for the Quarter:

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

 

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

 

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

 

 

Geographic Performance for the Quarter:

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

 

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

 

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

 

 

Results for first half of 2012

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

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

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

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

 

Business Outlook:

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

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

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

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

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Related Content:

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

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

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

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

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

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

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© Devoncroft Partners. All Rights Reserved.

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

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

Broadcast graphics and media asset management specialist Vizrt said its revenue for the full year 2012 will be less than previously projected, due to lower than anticipated results in the past three months, especially in EMEA and the Americas.

The company attributed the recent sales decline to market conditions in the Americas and EMEA that “seem to have deteriorated as a result of the continued economic uncertainties.” The company said that as a result of greater economic uncertainty, customers in these territories are making purchasing decisions more slowly and in some case are postponing of larger projects.

Vizrt is now estimating revenues for the second quarter 2012 to be in the range of $28m to $30m, a decline of 7% – 13% versus the $32.1m achieved in Q2 2011. As a result, the company also expects EBITDA for Q2 and the full year 2012 to be impacted.

At the time of the company’s most recent earnings release in May of 2012, Vizrt CEO Martin Burkhalter issued a cautiously optimistic statement about the company’s outlook for 2012. “We have witnessed no material change in the business climate other than that we sense that businesses have gotten used to and seem less affected by uncertainty, which has been the overriding sentiment these past few quarters, and as a result are less retracted in their investment outlook. Accordingly our level of comfort regarding the short to mid-term outlook has strengthened. Based on the general climate, several large upcoming events, the relevance of our product offering and the strength of our organization to convert opportunities into actual sales, we reiterate our earlier guidance of 13% revenue growth and improving margins.”

Today the company revised this guidance saying “Unless market conditions will improve during the rest of the year, the company believes that the earlier communicated revenue growth target of 13% for 2012 will have to be adjusted.”

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Related Content:

Press release: Vizrt Provides Outlook Update

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

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© Devoncroft Partners. All Rights Reserved.

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

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

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

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

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

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

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

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

Product Line Results for the Quarter:

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

 

Geographic Performance for the Quarter:

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

 

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

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

 

Business Outlook:

“We have witnessed no material change in the business climate other than that we sense that businesses have gotten used to and seem less affected by uncertainty, which has been the overriding sentiment these past few quarters, and as a result are less retracted in their investment outlook,” said Burkhalter.

“Accordingly our level of comfort regarding the short to mid-term outlook has strengthened. Based on the general climate, several large upcoming events, the relevance of our product offering and the strength of our organization to convert opportunities into actual sales, we reiterate our earlier guidance of 13% revenue growth and improving margins.”

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Related Content:

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

Vizrt  Q1 2012 Analyst Presentation

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

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

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

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

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 17 2012

Vizrt reported that its revenue for the fourth quarter of 2011 was $35.5m, an increase of 5% versus the same period a year ago, and up 12% versus the previous quarter. Full year revenue was $125m, an increase of 19% versus 2010, and record result for the company.

Gross margins for the fourth quarter of 2011 were 69%, up from 63% last year and up from 66% last quarter. EBITDA was $8.9m for the quarter, an increase of 44% versus last year and an increase of 58% versus last quarter.  The EBITDA margin for the quarter was 27%. Net profit for the quarter was $6m versus a loss of $193,000 a year ago, and up by 81% versus $3.32m last quarter.

Product Line Results for the Quarter:

  • Broadcast Graphics (BG) accounted for $26.8m during the quarter (75% of total revenue), an increase of 15% versus last year and an increase of 4% versus last quarter.
  • Media Asset Management (MAM) revenue in the quarter was $4.6m (13% of total revenue), down 18% versus the same period a year ago, and up 4% versus last quarter.
  • Online & Mobile (OLM) revenue in the quarter was $2.1m, down 26% versus last year and up 12% versus last quarter.  Vizrt said that in the future it will include mobile into its existing product lines for reporting purposes.

 

Geographic Performance for the Quarter:

  • Revenue from EMEA was $18.6m (51% of total revenue), up 5% versus the same period last year and up 6% versus last quarter
  • Americas revenue was $7.8m (22% of total revenue), up 7% versus last year, and up 16% versus last quarter
  • APAC revenue was $7.1 (20% of total revenue), up 5% 5% versus last year and down 4% versus last quarter

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Full Year Results:

Revenue for the full year 2011 was $125m, an increase of 19% versus 2010, and record result for the company.

Gross margins for the year were 66%, up from 62% in 2010.  EBIT for 2011 was $18.5m, or 15%, an improvement from a 9% EBIT margin last year.

Total operating expenses for FY 2011 were $64.4, up 7.5% compared to full year 2010. The increase was mainly due to an increase in headcount in Vizrt and staff additions due to the LiberoVision acquisition, which took place in July 2011. In its press release, the company pointed out that the increase in total operating expenses was below the revenue growth rate (7.5% versus 19%).

R&D expenses for the year were $19.1m up 22% versus last year, but remained steady at 15% of revenue. G&A expenses increased by 13% 10 $11.4m, but declined as a percentage of total revenue for the year. Sales & Marketing expenses also rose during the year in dollar terms but declined as a percentage of overall revenue.

EBITDA for the year was 24.9m (20%), an increase from $16.1m in 2010 (15%).

The company ended the year with $73.1m in cash, up $10.7 from the third quarter of 2011.

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Product Line Results for the Full Year:

  • Broadcast Graphics revenues for 2011 were $96.2 or 77% of total revenues.  2011 revenue from broadcast graphics was up 24% versus 2010
  • MAM revenues for 2011 were $19.2m, or 15% of total revenue .  2011 MAM revenue declined 2% versus 2010
  • Online & mobile revenue for 2011 was $9.9m or 8% of total revenues. Compared to 2010 OLM decreased 26%.  In a change to its reporting the company says it will no longer separately report OLM revenue because “Our Mobile technology is basically a technical extension of our existing business lines (MAM, Online, BG) and it is therefore natural to include Mobile as a product into our existing business lines.”

 

Geographic Performance for the Full Year:

The company said that all regions contributed to the improved performance in 2011, with the strongest growth recorded in APAC, where revenues went up by 38% to $28.5m versus the previous year.  Revenues in the EMEA region were up by 16%, $69m.  Revenue from the Americas region was up 9% versus 2010 to $27.8m.

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Outlook for 2012

Martin Burkhalter, Vizrt CEO, stated, “Despite the strong Q4 performance, we sense that the macroeconomic environment continues to be characterized by uncertainty. We are receiving some mixed signals from the market and concerns related to public debt, uncertainties related to the EURO, and signs of lower economic growth in the Eurozone countries and the U.S., might in the mid or long-term have an adverse impact on market conditions. However, based on our strong product offering, combined with certain large events such as the Olympic Games and the European Football Championships, as well as the 2012 U.S Presidential elections, we reiterate our outlook for 2012 of an organic revenue growth target of around 13%, with full year EBITDA improving towards our long term target of 23%.

“For 2012 we will focus on organic growth through consolidation of past acquisitions, further integration  between product lines and our increased sales capabilities in the regions. Due to the prevailing uncertainty, we will continue to focus strongly on controlling OPEX to protect our profitability.”

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Related Content:

Press Release: Vizrt Ltd. Reports 2011 and Q4 2011 Results with New Records

Vizrt Q4 and Full Year 2011 Analyst Presentation

Previous year: Vizrt Reports Record 2010 Revenue as Sales Jump 23 Percent   http://bit.ly/eqbAyT

Previous Quarter: Vizrt Reports Q3 2011 Results

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

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© Devoncroft Partners. All Rights Reserved.

 

 

 

Vizrt Q2 2011 Profit Triples as Revenue Jumps 32 Percent

broadcast technology market research, Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Aug 11 2011

Vizrt reported that its revenue for the second quarter of 2011 was $32.1m, an increase of 32% versus the same period a year ago, and up 15% compared to the previous quarter. The results were well above consensus estimate by analysts, and drove the company’s shares 5% higher on the day the results were released.

Net profit for the quarter was $4.5m, an increase of 322% versus last year, and up 111% compared to last quarter.

Gross margins in the quarter were 62%, up from 62% last year and 65% last quarter.  EBITDA was $6.4m for the quarter, an increase of 65% versus the second quarter of 2010 and an increase of 61% versus last quarter.

Broadcast graphics (BG) contributed $23.7m, or 74% of total revenue in the quarter. BG revenue increased 39% versus last year and was up 19% versus the previous quarter.

Media Asset Management (MAM) revenue in the quarter was $5.5m, an increase of 10% versus both last year and the last quarter.

Online and mobile revenue was $2.9m, up 38% from Q2 2010 and down 1% versus last quarter.

 

1H 2011 Results

Revenue for the first six months of 2011 was $60.1m, up 25% versus the same period in 2010. All business areas contributed to the revenue growth, with the strongest performance in BG and ONL.  Geographically, APAC led growth with 48%, compared to H1 2010.

BG revenues in H1 2011 accounted for 73% of total revenues and were up 26% versus the first six months of 2010. MAM accounted for 17% of total
revenue in H1 2011 and were up 11% versus 1H 2010. Online and mobile grew 57% in 1H 2011 versus the first six months if last year, and accounted for more than 10% of total revenue in the period.

Vizrt CEO Martin Burkhalter issued an upbeat statement saying “We are obviously pleased we have again managed to achieve record revenue levels, but perhaps even more pleasing is our bottom line performance, which saw a significant improvement, not only year on year, but also quarter on quarter.  It is clear that our strategic decisions and subsequent investments of the past couple of years are paying off.  Our combined and integrated product offering, supported by a strong commercial regionalization strategy, have allowed us not only to increase sales to existing customers but also reach a significant number of new ones.”

Commenting on the market conditions, Burkhalter added: “So far, the fiscal and macroeconomic challenges in the public sector of some European countries and the US have not had any visible negative impact on market conditions.  We do however see a growing concern related to rising public debt and signs of slower economic growth in certain regions that could, in the mid or long-term, have an impact.  That said, our performance has been very strong, and the signs for the second half of 2011 are positive.  We therefore expect to achieve stable growth for the second half of this year.”

 

Related Content:

Press release:  Vizrt Reports H1 and Q2 2011 Results

Vizrt Q2 & 1H 2011 Investor Presentation

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

Previous Year: Vizrt Announces Q2 and 1H 2010 Results

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