Evertz Technologies Ltd
TSX:ET
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Evertz Technologies Ltd
TSX:ET
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CA |
Evertz Technologies Ltd
Evertz Technologies Ltd. engages in the provision of television broadcast equipment and solutions that deliver content to television sets, on-demand services, WebTV, IPTV, and mobile devices. The company is headquartered in Burlington, Ontario and currently employs 1,715 full-time employees. The company went IPO on 2006-06-30. The Company’s solutions are purchased by content creators, broadcasters, specialty channels and television service providers to support their multi-channel digital and high definition television (HDTV) and high bandwidth low latency Internet Protocol (IP) network environments, and by telecommunications and new-media companies. The Company’s products offer signal routing, distribution, monitoring and management of content, as well as the automation and orchestration of workflow processes on premise and in the Cloud.
Evertz Technologies Ltd. engages in the provision of television broadcast equipment and solutions that deliver content to television sets, on-demand services, WebTV, IPTV, and mobile devices. The company is headquartered in Burlington, Ontario and currently employs 1,715 full-time employees. The company went IPO on 2006-06-30. The Company’s solutions are purchased by content creators, broadcasters, specialty channels and television service providers to support their multi-channel digital and high definition television (HDTV) and high bandwidth low latency Internet Protocol (IP) network environments, and by telecommunications and new-media companies. The Company’s products offer signal routing, distribution, monitoring and management of content, as well as the automation and orchestration of workflow processes on premise and in the Cloud.
Record Sales: Evertz reported record Q3 sales of $139.3 million, up 5% sequentially and up 2% year‑over‑year.
Recurring Growth: Recurring software, services and other software revenue rose to $62.5 million, up 12.3% year‑over‑year and now ~45% of revenue.
Margins & Profit: Gross margin was 58.3% (within the 56%–60% target range) and net earnings were $18.7 million, producing EPS of $0.24.
Backlog & Shipments: Purchase order backlog at end of February was more than $246 million and February shipments were $32 million, yielding combined backlog plus February shipments in excess of $278 million.
Cash & Dividends: Cash declined to $24.8 million (after $91 million in dividends in the quarter, including a $75.5 million special dividend); the Board declared a regular quarterly dividend of $0.205 per share.
Regional Mix: International revenue strengthened to $43.7 million (up 15% year‑over‑year and up 27.7% sequentially), representing 31% of sales; U.S./Canada was $95.6 million (down 3% year‑over‑year).
Inventory & Procurement: Management increased inventory to secure constrained components (memory etc.), using cash to stockpile parts to protect shipments.
Near-term OpEx: Expect modest Q4 OpEx increase (~$1.5–$2 million) for NAB and slightly higher R&D materials/prototypes (historically ~$0.5 million).
