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Vizrt Ltd. (OSL:VIZ) Revenue in Q3 up 28% USD 74.5 M, up 19% for the 9 months
Bergen, Norway, November 18, 2008, Vizrt Ltd. (Frankfurt Prime Standard, Oslo Main List: VIZ) today announces its results for Q3 and the first nine months of 2008.
Financial highlights for the three months ended September 30, 2008
Total Revenue: USD 27.1M, an increase of 28% compared to USD 21.2M for Q3 2007.
EBIT: USD 4.1M, an increase of 6% compared to USD 3.8M for Q3 2007.
EBITDA: (excluding taxes, interest, depreciation, amortization of intangible assets and deferred stock-based compensation) was USD 6.0M, an increase from USD 5.2M for Q3 2007.
Net Profit: USD 3.0M, compared with USD 3.8M in Q3 2007. The decrease results mainly from increased amortization of intangible assets due to ESC acquisition and financial expenses resulting from the volatility in currencies exchange rates vs. the USD.
Earnings per diluted share: USD 0.05 compared to USD 0.06 for Q3 2007
Cash status: During Q3 2008 the company generated a total of USD 6.8M from operating activities, and invested USD 15.0M in cash as part of the ESC acquisition. Additional USD 1.3M were invested in fixed assets.
On August 13, 2008, Vizrt concluded the acquisition of Escenic AS ("ESC"). Following this date the financial statements of ESC are consolidated. The consolidated balance sheet as of September 30, 2008, includes goodwill in the amount of USD 20.6M and intangible assets in the amount of USD 10.6M. The intangible assets will be amortized over the next 7 years, most of which in the next 4 years. Net of tax, the quarterly amortization in Q308 amounted USD 0.5M. Net of tax Q408 amortization is expected to be USD 0.8M and USD 0.4M thereafter, based on a preliminary purchase price allocation study.
Outlook
Bjarne Berg, President & CEO stated, "We are pleased with our results. In terms of our BG and MAM business, we have not witnessed significant effects of the current financial crisis so far, as have other sectors of the economy. We are confident of the future, but due to the limited visibility currently of the markets in general, we do not feel we are in a position to comment accurately on what effects the current economic environment will have on our business over the next few quarters. Simply because investments are needed in the digital world, at worst these may be postponed, but they will be made. We do, however, prepare ourselves for all possabilities in these times of uncertainty, inluding a slower business climate."
"We do believe that the current climate has negatively influenced the Escenic results, which have not been as strong as expected. Publishing houses are currently the ones suffering the strongest decline in advertising revenues. All this said, even though down slightly from last quarter, we do have a healthy backlog of USD 27.4 million, which is very pleasing."
On www.vizrt.com/IR you can read a letter from the CEO to all employees in the company, providing his view of the future.
One of the recent highlights was Vizrt's very visible contribution to the coverage by many of the national and international networks of the US presidential elections on November 4th. The most talked about coverage was that of CNN with their "hologramic reporter", made possible with Vizrt and SportVU technology. In addition to this, American broadcasters used many other Vizrt powered elements, including a so-called touch screen. Following the elections, hits on Vizrt's website increased tenfold.
Financial highlights for the nine months ended September 30, 2008
Total Revenue: USD 74.5M, an increase of 19% compared to USD 62.4M for the first nine months of 2007.
EBIT: USD 12.4M, up 10% from USD 11.3M for the first nine months of 2007.
EBITDA: (excluding taxes, interest, depreciation, amortization of intangible assets and deferred stock-based compensation) was USD 17.1M, up 12% from USD 15.2 for the first nine months of 2007.
Net Profit: remain at USD 10.8M, compared to the first nine months of 2007. Earnings per diluted share: remain at USD 0.17 compared with the first nine months of 2007.
Cash status: USD 43.1M (including cash and short term deposits) down from USD 48.0M as of December 31, 2007. During the first nine months of 2008 the company generated a total of USD 12.7M from operating activities, and paid USD 15.0M in cash as part of the Escenic acquisition. Additional USD 2.8M were invested in fixed assets.
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A conference call will be held at 11:00 (CEST) today to offer analysts, investors and media the opportunity to directly discuss the results and recent developments with Bjarne Berg, CEO, and Ofra Brown, CFO of the company. Please use one of the following dial-in-numbers: +44 20 7806 1969 (UK), +47 2415 9759 (Norway), +49 69 71044 5513 (Germany). Participant Pass Code: 152414.
Media and investors contacts:
Bjarne Berg President & CEO +47 9055 7711 bberg@vizrt.com
Ofra Brown CFO +47 5351 8040 ofra@vizrt.com
SCHWARZ Financial Communication Frank Schwarz +49 611 1745 398 11 schwarz@schwarzfinancial.com
This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
