Evertz Technologies Ltd
TSX:ET
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.
Revenue Growth: Evertz reported Q2 sales of $132.7 million, up 18.4% sequentially and 6% year-over-year, with strong contributions from both hardware and software/services.
Margin Performance: Gross margin for the quarter was 58.6%, slightly lower than recent quarters but within the company's 56–60% target range, mainly due to typical product mix volatility.
Software & Services: Recurring software and services revenue reached $60.7 million, up 17.6% sequentially and 11% year-over-year, accounting for 46% of total revenue.
Backlog & Shipments: Evertz ended November with over $240 million backlog and $46 million in shipments for the month, indicating strong demand and momentum.
Dividends: The Board declared a regular quarterly dividend of $0.205 per share and a special dividend of $1 per share, citing a strong balance sheet and operating performance.
R&D Spending: R&D expenses remained stable, reflecting normalized salary inflation and an ongoing commitment to innovation.
Outlook & Confidence: Management expressed confidence in growth, citing robust backlog, ongoing adoption of IP/cloud solutions, and flexibility for M&A despite dividend payouts.
