BURLINGTON, ONTARIO — (Marketwired) — 03/04/15 — Evertz Technologies Limited (TSX: ET), the leader in Software Defined Video Network (“SDVN”) technology, today reported its results for the third quarter of its fiscal 2015.
Quarterly Highlights
Revenue
For the quarter ended January 31, 2015, revenues were $90.7 million as compared to revenues of $93.2 million for the quarter ended January 31, 2014. For the quarter, revenues in the United States/Canada region were $53.6 million compared to $55.0 million in the same quarter last year. The International region had revenues of $37.2 million compared to $38.2 million in the same quarter last year.
Gross Margin
For the quarter ended January 31, 2015 gross margin was $51.0 million compared to $53.7 million in the same quarter last year. Gross margin percentage was approximately 56.2% compared to 57.7% in the quarter ended January 31, 2014.
Earnings
For the quarter ended January 31, 2015 net earnings were $21.2 million, compared to $21.3 million in the corresponding period last year.
For the quarter ended January 31, 2015, earnings per share on a fully-diluted basis were $0.28 compared to $0.29 in the corresponding period last year.
Operating Expenses
For the quarter ended January 31, 2015 selling and administrative expenses were $14.8 million compared to $14.9 million for the quarter ended January 31, 2014.
For the quarter ended January 31, 2015 gross research and development expenses increased by $0.8 million or 5% as compared to the corresponding period in 2014. Gross research and development expenses represented approximately 17.4% of revenue for the quarter ended January 31, 2015.
Liquidity and Capital Resources
The Company–s working capital as at January 31, 2015 was $297.4 million as compared to $273.9 million on April 30, 2014.
Cash and cash equivalents were $103.3 million as at January 31, 2015 as compared to $102.0 million on April 30, 2014.
Cash generated from operations was $27.5 million for the quarter ended January 31, 2015 as compared to cash provided of $24.4 million for the quarter ended January 31, 2014. Before taking into account taxes and the changes in non-cash working capital and current taxes, the Company generated $25.9 million from operations for the quarter ended January 31, 2015 compared to $24.5 million for the same period last year.
The Company used cash of $2.1 million in investing activities largely a result of purchases in capital assets of $2.2 million, compared to $2.6 million in capital assets purchased for the quarter ended January 31, 2014.
For the quarter ended January 31, 2015, the Company used cash in financing activities of $13.4 million which was principally a result of the payment of dividends.
Shipments and Backlog
At the end of February 2015, purchase order backlog was in excess of $65 million and shipments during the month of February 2015 were $19 million.
Dividend Declared
Evertz Board of Directors declared a regular quarterly dividend on March 4, 2015 of $0.18 per share.
The dividend is payable to shareholders of record on March 13, 2015 and will be paid on or about March 20, 2015.
Forward-Looking Statements
The report contains forward-looking statements reflecting Evertz–s objectives, estimates and expectations. Such forward looking statements use words such as “may”, “will”, “expect”, “believe”, “anticipate”, “plan”, “intend”, “project”, “continue” and other similar terminology of a forward-looking nature or negatives of those terms.
Although management of the Company believes that the expectations reflected in such forward-looking statements are reasonable, all forward-looking statements address matters that involve known and unknown risks, uncertainties and other factors. Accordingly, there are or will be a number of significant factors which could cause the Company–s actual results, performance or achievements, or industry results to be materially different from any future results performance or achievements expressed or implied by such forward-looking statements.
Conference Call
The Company will hold a conference call with financial analysts to discuss the results on March 4, 2015 at 5:00 p.m. (EDT). Media and other interested parties are invited to join the conference call in listen-only mode. The conference call may be accessed by dialing 1-416-849- 1967 or toll-free (North America) 1-866-253-4709.
For those unable to listen to the live call, a rebroadcast will also be available until April 4, 2015. The rebroadcast can be accessed at 1-416-915-1035 or toll-free 1-866-245-6755. The pass code for the rebroadcast is 827696.
About Evertz
Evertz Technologies Limited (TSX: ET) designs, manufactures and markets video and audio infrastructure solutions for the television, telecommunications and new-media industries. The Company–s solutions are purchased by content creators, broadcasters, specialty channels and television service providers to support their increasingly complex multi-channel digital and high definition television (“HDTV”) and next generation high bandwidth low latency IP network environments and by telecommunications and new-media companies. The Company–s products allow its customers to generate additional revenue while reducing costs through the more efficient signal routing, distribution, monitoring and management of content as well as the automation of previously manual processes.
Contacts:
Evertz Technologies Limited
Anthony Gridley
Chief Financial Officer
(905) 335-7580
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