Vizrt Reports H1 and Q2 2014 Results


All time high quarterly revenue

Annual revenue growth target raised to 15%-18%


Bergen, Norway, August 14, 2014. Vizrt Ltd. (Oslo Main List: VIZ)

Vizrt today reported its financial results for the second quarter of 2014 and the first six months of 2014.


  • Record quarterly revenues of MUSD 36.4, up 19% compared to Q2 2013.
  • EBITDA of MUSD 8.0, corresponding to a 22% margin, up 26% compared to MUSD 6.4 (21%) in Q2 2013.
  • Cash generation from operating activities of MUSD 4.1 (adjusted for MUSD 18.0 tax payment as detailed bellow), down 35% compared to MUSD 6.3 in Q2 2013.


  • Revenues of MUSD 70.1, up 24% compared to H1 2013.
  • EBITDA of MUSD 15.0, corresponding to a 21% margin, up 48% compared to MUSD 10.1 (18%) in H1 2013.
  • Cash generation from operating activities of MUSD 13.1 (adjusted for MUSD 18.0 tax payment as detailed bellow), up 56%, as compared to MUSD 8.4 in H1 2013.


  • Annual revenue growth target is raised to 15%-18% on a full year basis.
  • Revenue growth attributable mainly to organic growth.
  • Additional contribution to revenue growth from Mosart, which was consolidated starting March 11, 2014.
  • EMEA achieved strong 42% revenue growth Q-o-Q.
  • Backlog of MUSD 51.7 is at all-time high, mainly due to Mosart’s first time inclusion in the backlog.
  • On June 26, 2014 the Company announced it had reached a settlement with the Israeli Tax Authorities (“ITA”) for all open and disputed years 2006-2012. The settlement included a cash payment of MUSD 18.0, which was paid on June 30, 2014.


Martin Burkhalter, Vizrt’s CEO, stated: “We are extremely pleased with our development for the first half of 2014, having achieved record quarterly revenues in both Q1 and Q2. Revenue growth for H1 of 2014 was a significant 24%, as compared to the same period last year. The 19% growth we recorded for Q2 2014 was driven by the continued improvement in the EMEA business climate, as well as a strong performance in APAC. Revenues for the AMERICAS came in at the same level as last year, fully in line with our expectations.”

“BG revenues continued to drive our overall performance and were up 26% compared to Q2 of last year. Mosart, which is part of BG, performed in line with expectations, while MAM revenues were down 11%. The decline in MAM revenues was attributable mainly to delayed delivery of projects in Thailand due to the political situation in that country during parts of Q2.

“Our strong growth during for the first six months of the year also resulted in an improved profitability, with a gross margin of 68%, up from 66%, and EBITDA up three percentage points to 21% as compared to H1 2013. Overall, we believe our strong performance was due to improved market conditions, predominantly in EMEA, the positioning of our product offering, as well as the excellent work of our teams across the globe.”

“Net profit in Q2 2014 was negatively impacted by MUSD 3.7 taxes on income related to the tax settlement with the ITA, as we announced on June 26. We are very pleased to have successfully reached an agreement for all years under dispute 2006-2012. Considering that we were looking at a potential liability of MUSD 72.5 as per the originally issued tax orders, we are very satisfied with the outcome of our negotiations and the final settlement of MUSD 18.0, which removes any uncertainty in the market related to the final outcome of the tax dispute with the ITA.”

Mr. Burkhalter concluded: “We anticipate that the strength we are currently witnessing in the market will continue for the remainder of 2014. Our product offering is stronger than ever and we believe that the acquisition of Mosart creates further opportunities. Mosart’s contribution to the record backlog is a solid ground to our future growth. Based on the solid performance in the first half of the year and the short term outlook of the market, we raise the expected consolidated revenue growth rate to 15%-18% on a full year basis.”



In KUSD Q2 2014 Q2 2013 Change in % Q1 2014 Change in % H1 2014 H1 2013 Change in %
Revenue 36,388 30,569 19% 33,723 8% 70,111 56,707 24%
Gross Profit 24,765 20,545 21% 23,150 7% 47,915 37,686 27%
Gross Margin 68% 67% 69% 68% 66%
EBIT 6,644 5,304 25% 5,995 11% 12,639 7,985 58%
EBIT Margin 18% 17% 18% 18% 14%
EBITDA 7,996 6,360 26% 7,014 14% 15,009 10,139 48%
EBITDA Margin 22% 21% 21% 21% 18%
Cash Flow from operating activities (13,863) 6,334 N/A 8,978 N/A (4,885) 8,395 N/A
Adjusted cash Flow from operating activities* 4,105 6,334 -35% 8,978 -54% 13,087 8,395 56%

* Q2 2014 adjusted for MUSD 18.0 taxes on income paid as part of the settlement with the Israeli tax authorities.

Product lines breakdown of revenues

In KUSD Q2 2014 Q2 2013 Change in % Q1 2014 Change in % H1 2014 H1 2013 Change in %
BG 31,356 24,903 26% 29,345 7% 60,701 46,841 30%
MAM 5,032 5,666 -11% 4,378 15% 9,410 9,866 -5%
Revenues 36,388 30,569 19% 33,723 8% 70,111 56,707 24%

BG and MAM revenues in Q2 2014, accounted for 86% and 14% of total revenues, respectively, as compared to 81% and 19%, respectively, in Q2 2013.

Revenue growth compared to Q2 2013 is attributable mainly to organic growth. An additional contribution came from Mosart, which is consolidated starting March 11, 2014.

Geographic breakdown of revenues

In KUSD Q2 2014 Q2 2013 Change in % Q1 2014 Change in % H1 2014 H1 2013 Change in %
EMEA 17,695 12,480 42% 16,060 10% 33,754 22,791 48%
AMECS 8,986 9,176 -2% 9,070 -1% 18,056 18,498 -2%
APAC 9,707 8,913 9% 8,593 13% 18,301 15,418 19%
Revenues 36,388 30,569 19% 33,723 8% 70,111 56,707 24%

Revenues in EMEA, AMECS and APAC, accounted for 49%, 25% and 27% of Q2 2014 total revenues, respectively, as compared to 41%, 30% and 29%, respectively, in Q2 2013.

Operating expenses

In KUSD Q2 2014 Q2 2013 Change in % Q1 2014 Change in % H1 2014 H1 2013 Change in %
R&D 5,779 4,321 34% 5,509 5% 11,288 8,843 28%
S&M 9,152 8,249 11% 8,595 6% 17,747 15,548 14%
G&A 3,190 2,671 19% 3,051 5% 6,241 5,310 18%
OPEX 18,121 15,241 19% 17,155 6% 35,276 29,701 19%

The increase in OPEX for Q2 2014, as compared to Q2 2013, is attributable mainly to the consolidation of Mosart starting from March 11, 2014, as well as to the variable compensation component based on annual targets and headcount related costs. The increase compared to Q1 14 is explained mainly by the consolidation of Mosart.

Currency effects

Exchange rate fluctuations in the USD versus the other main currencies Vizrt deals with (Euro, NOK, SEK, THB, AUD) did not materially affect revenues as compared to the revenues reported for Q2 2013.

Order backlog

Order backlog as of August 12, 2014, reached a record level of MUSD 51.7, up 12%, compared to MUSD 46.1 at same time LY, and up 6% compared to the Q1 2014 results release date. BG backlog was at MUSD 38.2 and MAM backlog at MUSD 13.5. BG backlog was up 36% compared to the same time LY, and MAM backlog was down 25%, compared to the same time LY. The increase in the BG backlog is mainly attributed to the first time inclusion of Mosart in the backlog starting from the Q2 2014 results announcement.

Balance sheet, cash flow and liquidity

Adjusted cash flow generation from operating activities in Q2 2014 was MUSD 4.1 (adjusted for MUSD 18.0 tax payments as detailed below), down 35% compared to MUSD 6.3 in Q2 2013.

Vizrt has a strong financial position with no interest-bearing debt and a net cash position of MUSD 37.1 as of June 30, 2014 (including MUSD 0.2 restricted cash), compared to MUSD 61.1 as of December 31, 2013 (including MUSD 0.2 restricted cash).

The Company’s cash position increased by MUSD 12.3, as compared to December 31, 2013, adjusted for the ITA cash settlement of MUSD 18.0, the net cash consideration for the Mosart acquisition of MUSD 16.8, the gross dividend pay-out of MUSD 3.6, and offset by MUSD 2.0 consideration received for Escenic.

Shareholders’ equity as of June 30, 2014 was MUSD 95.8, which is equivalent to an equity ratio of 71%.


The settlement with the ITA resulted in additional taxes on income of MUSD 3.7 in the statement of income for Q2 2014, whereas the tax provision was reduced by MUSD 14.3. Taxes on income for Q2 2014 amounted to MUSD 5.2. Adjusted for the one-off ITA related tax expense of MUSD 3.7, taxes on income were MUSD 1.6, reflecting an effective tax rate of 24%, as compared to MUSD 1.5 (28%) for Q2 2013.


At the end of Q2 2014, the Company had 580 employees compared to 532 at the end of Q2 2013.

24 employees were added following Mosart acquisition during Q1 2014.


An analyst conference will be held on August 14, 2014 at 09:30 a.m. (CET) at the DNB Markets Head Office, Dronning Eufemias gate 30, Bjørvika, 0191 Oslo, Norway.

Management will furthermore discuss the results in a conference call at 13:15 p.m. (CET). Call details are as follows:

+ 47 24 159584 (Norway)

+ 44 203 3679216 (UK)

+49 69 247501895 (Germany)

A recording of the call will be available at the Company’s website:


Vizrt will hold this year’s Capital Markets Day during the IBC broadcast conference and exhibition in Amsterdam, The Netherlands, on Friday, September 12, 2014.

The results for the third quarter of 2014 will be published on November 13, 2014.


Investor and media contact:

Martin Burkhalter / CEO / +41 22 365 75 01 /

Tomer Wald / CFO / +44 20 3289 6415 /

Frank Schwarz / Schwarz Financial Communication / +49 611 1745 398 11 /


About Vizrt:

Vizrt provides real-time 3D graphics, studio automation, sports analysis and asset management tools for the broadcast industry - interactive and virtual solutions, animations, maps, weather, video editing and compositing tools. Vizrt's products are used by the world's leading broadcasters, including: CNN, CBS, Fox, the BBC, BSkyB, Al Jazeera, ITN, ZDF, Star TV, Network 18, TV Today, CCTV, and NHK. Furthermore, many world-class production houses and corporate institutions such as the Stock Exchanges in New York and London use Vizrt systems.

Vizrt is a public company traded on the Oslo Main List: VIZ, ISIN: IL0010838154. For further information please refer to

Copyright © Vizrt. All rights reserved. This press release contains forward-looking statements with respect to the business, financial condition and results of operations of Vizrt and its affiliates. These statements are based on the current expectations or beliefs of Vizrt's management and are subject to a number of risks and uncertainties that could cause actual results or performance of the Company to differ materially from those contemplated in such forward-looking statements. These risks and uncertainties relate to changes in technology and market requirements, the company’s concentration on one industry, decline in demand for the company’s products and those of its affiliates, inability to timely develop and introduce new technologies, products and applications, and loss of market share and pressure on pricing resulting from competition, which could cause the actual results or performance of the company to differ materially from those contemplated in such forward-looking statements. Vizrt undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.