Vizrt 2006 Annual Report

Vizrt generated USD 17.8 million in cash
Net result doubled


Bergen, Norway, February 20, 2007, Vizrt Ltd. (Frankfurt Prime Standard, Oslo Main List: VIZ) today announced its financial results for 2006 with yet another record revenue and record bottom line results, reaching consolidated revenues of USD 63.4M and USD 11.6M net profit for 2006 compared to revenues of USD 38.8M and USD 6.0M net profit in 2005.

Financial highlights for the year ended December, 31 2006

  • Consolidated revenues for 2006 increased by 63% to USD 63.4M compared to USD 38.8M for the year 2005.
  • EBIT in 2006 was USD 11.8M, up 98% compared to EBIT of USD 6.0M in 2005.
  • EBITDA (excluding taxes, interest, depreciation and deferred stock-based compensation) in 2006 was up 119% to USD 15.5M compared to USD 7.1M in 2005.
  • Net profit in 2006 was up 92% to USD 11.6M compared to a net profit of USD 6.0M in 2005.
  • Basic earnings per share in 2006 was USD 0.62, compared to USD 0.40 in 2005.
  • Diluted earnings per share in 2006 was USD 0.58, compared to USD 0.36 in 2005.
  • Cash balance as of December 31, 2006 was USD 38.2M (including cash and short term deposits) compared to USD 20.4M as of December 31, 2005, generating USD 17.8M mainly from operating activities in 2006.
Outlook: Vizrt Expects Growth from Asset Management and Expands R&D in Asia

Vizrt expects continued growth in 2007, especially towards the second half of the year. "Our work makes your work flow" is our new message to customers since declining advertising revenues in many countries are forcing broadcasters to look more and more into how improving workflow can help them shave costs. As Vizrt develops its product line towards supporting the most important functions in a TV station, we are well positioned to broaden our presence with our existing customers.

The most exciting part of Vizrt's future is the asset management product line. Over the next few years broadcasters will invest billions in storage, asset management and content access products that will enable every department to "Produce once and deliver many" over the new and existing media platforms available to them. The trade press estimates that only 1% of broadcasters have invested in their future systems so far. Vizrt is therefore in the right position and has the right products for this future. For broadcasters who have already taken decisions about installing asset management systems to safeguard their digital future, Vizrt won a large chunk of the bigger contracts during 2006.

We will scale our operation to meet anticipated worldwide demand and the potential threat to future growth by hiring people with the right basic skills and training them on our products in-house. While this appears to be expensive and time-consuming, it is a very wise investment for Vizrt's future.

The cost of employees is increasing throughout the Western world and so to off-set these increases we are employing staff in countries like Thailand, India and China. In Thailand we opened the office to develop the Multi-Platform Solution (MPS) for web and mobile phones. The product drew a lot of attention at the recent 3gsm tradeshow in Barcelona and will have a beta release ready for NAB in the middle of April. Singapore, Malaysia, the Philippines, Indonesia and Thailand are expected to become huge broadcast markets over the next five years, and Vizrt will make sure to have a presence there.

Please click on link at the end of this message in order to review the full release, including Q4 2006 results and tables.

A conference call will be held at 11:00 (CET) 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), +49 69 9897 2626 (Germany), +47 2316 2193 (Norway) Participant. Pass code: 643006.

Contacts:

Bjarne Berg
President & CEO
+47 9055 7711
bberg@vizrt.com  

Ofra Brown
CFO
+47 2169 2790
ofra@vizrt.com  

SCHWARZ Financial Communication
Frank Schwarz
+49 611 1745 398 11
schwarz@schwarzfinancial.com