Evertz Technologies Ltd

F:74E

Revenue: Evertz reported Q1 sales of $118.3 million, up 5.5% year over year, with software and services revenue rising 14% to $58.9 million and representing approximately 50% of sales.

Backlog: Purchase order backlog exceeded $259 million at the end of August, while August shipments were $30 million, bringing combined backlog and recent shipments above $289 million.

Margins: Gross margin was 58.6%, below the prior year’s 61.4% but within management’s target range; management said it does not forecast a decrease at this time.

Demand: International revenue increased 17.5% to $38.3 million, helped by several European project completions, while overall demand remained project-driven and somewhat lumpy.

Supply chain: Evertz invested approximately $20 million in memory, storage and servers to address longer lead times tied largely to AI demand, but reported no current material component shortages.

Tariffs: Tariffs have caused some marginal costs, but management said they are not materially affecting the business, margins or U.S. growth prospects.

Government: Government and defense revenue represented approximately 5% to 6% of quarterly sales, with strong order intake in August and continued efforts to expand Evertz’s Canadian government presence.

Capital return: The board declared a regular quarterly dividend of $0.205 per share, payable on or about October 1.