Vizrt Reports Q1 2012 Results - Positive Start to the Year

Revenues up 13% compared to Q1 2011

EBIT and Gross Margins improve significantly

Bergen, Norway, May 10, 2012. Vizrt Ltd. (Oslo Main List: VIZ)

Vizrt posted revenues of MUSD 31.7 for Q1 2012, up 13% compared to Q1 2011, as the company managed to carry the strong momentum from Q4 2011 into the new year.  Especially Vizrt's core BG business performed well, with a 24% Y-o-Y growth.  A strong improvement in the Gross Margin from 62% to 67% boosted the Company's operational performance.  Compared to the previous three quarters, the general economic sentiment seems to have settled into a state of relative comfort regarding the short to mid-term outlook, which leads management to reiterate its earlier guidance of 13% organic growth and improving margins.


  • Revenues: MUSD 31.7, up 13% compared to MUSD 28.0 in Q1 2011.
  • EBIT: MUSD 4.0 corresponding to a 13% margin, up 69% compared to MUSD 2.4 (8%) in Q1 2011.
  • EBITDA: MUSD 5.6 corresponding to an 18% margin, up 40% compared to MUSD 4.0 (14%) in Q1 2011.
  • Net profit: MUSD 2.1 (7%) same as Q1 2011.
  • EPS:  USD 0.03 per share, same as Q1 2011, due to financial expenses (currency impact) and higher tax expenses.
  • Cash provided by operating activities in Q1 2012 was MUSD 3.4, up 42%, compared to MUSD 2.4 for Q1 2011.
  • Backlog to date amounts to MUSD 50.0, up 25% compared to the same period LY. 

On March 14th the Company announced the closing of the second trench for the acquisition of LiberoVision. Vizrt acquired an additional 20% stake for a consideration of CHF 242,556, paid 80% in cash and 20% in Vizrt's shares. Following the second closing, Vizrt holds 80% of LiberoVision.

On March 29th the Company paid a dividend to its shareholders.  The gross amount was NOK 0.86 per ordinary share and a net amount of NOK 0.69 per share. The total dividend paid was approximately MUSD 10.0.

Comments and Outlook

Martin Burkhalter, Vizrt's CEO, commented on the results: "We are pleased with our Q1 performance, which was fully in line with our own expectations.  Traditionally the weakest quarter of the year, we still managed to record strong improvements, both for revenues and operating results.  We have witnessed no material change in the business climate, other than that we sense that businesses have gotten used to and seem less affected by uncertainty, which has been the overriding sentiment these past few quarters, and as a result are less retracted in their investment outlook. Accordingly our level of comfort regarding the short to mid-term outlook has strengthened. Our customers have continued to make investments in what they feel are their core technological needs, which we serve with our BG and MAM product lines.  At the same time, large new projects in ONL are assigned a lower priority and hence capital spending in this area is still less frequent."

"Based on the general climate, several large upcoming events, the relevance of our product offering and the strength of our organization to convert opportunities into actual sales, we reiterate our earlier guidance of 13% revenue growth and improving margins."

Results Overview

In KUSD Q12012 Q12011 Change in% Q42011 Change in %
Revenue 31,708 28,001 13% 33,483 -5%
Gross Profit 21,088 17,439 21% 23,156 -9%
Gross Margin 67% 62%   69%  
EBIT 4,013 2,369 69% 7,193 -44%
EBIT Margin 13% 8%   21%  
EBITDA 5,562 3,977 40% 8,891 -37%
EBITDA-Margin 18% 14%   27%  
Net Profit (loss) 2,140 2,141 0% 6,000 -64%
Net Profit-Margin 7% 8%   18%  
EPS 0.03 0.03 0% 0.09 -67%
Backlog 50,026 40,000 25% 46,389 6%
Cash Position 68,565 59,938 14% 73,062 -6%

Vizrt Product Lines and Geographical Overview

Broadcast Graphics (BG)

BG revenues accounted for 79% of total revenues, or MUSD 24.9, a 24% growth Y-o-Y. Compared to Q4 2011 BG revenues were down 7%, a small decrease, considering that the first quarter of the financial year is typically much slower than the fourth quarter.  BG remains the largest revenue contributor.

Media Asset Management (MAM)

MAM revenues, with MUSD 5.2, came in at the same level as Q1 2011.  Compared to Q4 2011, MAM revenues were up 8%.  MAM is the second largest contributor to revenues with a share in total revenues of 16% in Q1 2012.

Online (ONL)

ONL revenues accounted for 5% of total revenues, or MUSD 1.6, compared to MUSD 2.6 in Q1 2011, down significantly. Compared to Q4 2011 ONL revenues were down 12%.

Geographical Overview

All regions contributed to the improved performance in Q1 2012. The strongest growth was recorded in EMEA, where revenues went up by 20% to MUSD 17.9, as compared to MUSD 14.9 for Q1 2011. Revenues in the Americas increased by 9%, from MUSD 6.5 to MUSD 7.1, and revenues in APAC were up 2%, from MUSD 6.6 to MUSD 6.7.


Gross Profit and Gross Margin

The gross margin for Q1 2012 came in at 67%, as compared to 62% for the same period LY. The improved gross margin was mainly due to improved margins for MAM. The gross profit for Q1 2012 was affected by a MUSD 0.65 amortization of intangible assets from acquisitions, compared to MUSD 0.8 for Q1 2011. Adjusted for these amortization effects, the gross margins were 69% and 65%, respectively.

Operating Expenses

Total operating expenses for Q1 2012 were MUSD 17.1, up 13% compared to the same period LY. The increase was mainly due to an increase in headcount in Vizrt and staff additions due to the LiberoVision acquisition, which took place in July 2011. Furthermore, a general salary increase implemented throughout the company in 2012, contributed to the cost increase.

Operating expenses summary

In KUSD                 Q1 12                 Q1 11                 Q4 11
R&D 5,108 4,609 4,729
S&M 8,932 7,859 7,993
G&A 3,035 2,602 3,241
OPEX 17,075 15,070 15,963

Currency Effects

Adjusted for the appreciation of the USD compared to Q1 2011 versus the other main currencies Vizrt deals with (Euro, NOK, SEK), revenues would have increased by 15% as compared to the reported 13%.  However, the net effect of the strengthening of the USD on earnings was negligible due to the effect on operating expenses.


Tax on income for Q112 amounted to MUSD 1.3. The increase in taxes on income in Q112 is mainly a result of the paid out dividend in March 2012 and the adopted dividend policy.

As a result of the adopted dividend policy, by which up streaming earnings generated in the group companies for distribution by the parent company, creates an additional tax liability, the effective annual tax rate is expected to increase to a range of 25-30%. The effective tax rate may vary due to other factors as well.

Order backlog

The order backlog as of May 8, 2012, was MUSD 50.0, up 25%, compared to LY MUSD 40.0, and up 6% compared to the Q4 2011 results release date. BG backlog was at MUSD 25.0, MAM backlog at MUSD 21.0 and ONL backlog at MUSD 4.0. For BG and MAM backlog was up 8% and 80% respectively, compared to the same period LY, whereas for ONL the backlog was down 19%, comparing to the same period LY.

Balance Sheet, Cash Flow and Liquidity

Cash flow generation from operating activities in Q1 2012 was MUSD 3.4, compared to MUSD 2.4 in Q1 2011.

Vizrt has a strong financial position with no interest-bearing debt and a cash position of MUSD 68.6 as of March 31, 2012 (including MUSD 0.6 restricted cash), compared to MUSD 73.1 as of December 31, 2011 (including MUSD 0.6 restricted cash). Cash generation in Q1 2012 was MUSD 3.5 which was offset by the dividend payment, made in late March 2012. Shareholders' equity as of March 31, 2012 stood at MUSD 120.5, which is equivalent to an equity ratio of 74%.


As of March 31, 2012, the Company had 583 employees, compared to 585 as of December 31, 2011 and 546 employees as of March 31, 2011. The increase compared to March 31, 2011 is mainly due to increased staffing in low cost countries, as well as additional employees resulting from the acquisition of LiberoVision in Q3 2011.

The full Q1 2012 Report and the Management Presentation are available for download via the links at the end of this message.

Analyst Conference

An Analyst Conference will be held at 09:30 a.m. (CET) at DNB Head Offices, Stranden 21 in Oslo.

Management will furthermore discuss Q1 2012 results in a conference call at 1.30 p.m. (CET) Call details are as follows:

+47 24 159585 (Norway)

+44 203 1474861 (UK)

+49 69 247501893 (Germany)

A replay of the call will be available until May 17, 2011. Please use the following dial-in-numbers:

+49 30 868757040 (Germany); +44 203 024 54 07 (UK), +1 408 9160685 (US)

passcode:  9418547#


About Vizrt:
Vizrt provides real-time 3D graphics and asset management tools for the broadcast industry - from award-winning animations & maps to online publishing tools. Vizrt's products are used by the world's leading broadcasters and publishing houses, including: CNN, CBS, Fox, the BBC, BSkyB, ITN, ZDF, Star TV, Network 18, TV Today, CCTV, NHK, The Globe and Mail, Times Online, The Telegraph, and Welt Online.  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

Investors and media contacts:


Martin Burkhalter
President & CEO
+41 22 365 75 01

Ofra Brown
+47 5351 8040

SCHWARZ Financial Communication
Frank Schwarz
+49 611 1745 398 11

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.