THIRD QUARTER 2009
Revenue up 4% in Q309 compared to Q209
MUSD 3.5 cash generated in Q309
HIGHLIGHTS
# Q309 Revenues of MUSD 21.5, up 4% compared to MUSD 20.7 in Q209.
# EBITDA of MUSD 2.7 in Q309, representing a 12% margin, up 32% compared to MUSD 2.0 (10%) in Q209.
# EBIT of MUSD 0.6 in Q309, compared to MUSD 0.5 in Q209.
# Total backlog to date is MUSD 34.4, compared to MUSD 27.5 in Q209, up 25%, due to securing a lot of support agreements.
# Strong cash generation of MUSD 3.5 during Q309.
# The Company is required to perform an annual impairment test on the goodwill related to the Escenic acquisition. The September 30, 2009 test is under way, and expected to be com-pleted by mid-February, 2010. If the company determines that any portion of goodwill is im-paired, it will recognize a non-cash charge that would impact earnings and earnings per share for the third quarter of 2009 presented in this press release, as well as for the full financial year ended December 31, 2009.
OUTLOOK
Bjarne Berg, President and CEO, stated: "We will soon finalize the budget and planning for 2010. The extensive planning process provides us with very useful intelligence about the current market conditions. We talk to a large number of custom-ers, potential customers and others with knowl-edge of our industry all over the world. The signals we are getting from the media companies are still mixed. Most of them do not believe they will ever see earnings like they did in the first 8 years of this century, but at the same time, most of those we spoke with believe they have to invest in order to get as much as possible out of the advertising market.
The majority of customers also tell us that the downsizing they went through during the last cou-ple of years has left them with little management capacity for developing new formats and improved workflows. After all, if you recently let hundreds of people go, that must impact dramatically on your ability to manage an increase in activity. The next stage of this exercise must be to consider new formats and a better workflow. With fewer em-ployees at your disposal, you need to work smarter. Since Vizrt is a company that focuses its energy on improving its customers' workflows, many media companies are turning to us for advice and help across all media platforms. We know that many of them have reached that phase right now and we know that many more will be added to the list during 2010.
Therefore, we are still hopeful that we will continue to grow both during the next quarter and in the quarters to come. For the next three quarters, we are forecasting a moderate growth, but we are cau-tiously optimistic that during H2 2010 we might see growth rates approaching those we experi-enced in previous years.
The Full Q3 2009 Report and Managment Presentation can be reviewed via the PDF-Downloads.
The international Conference Call will be held at 14:00 h (CET)
Please use one of the following dial-in-numbers:
+44 (0)20 7784 1038 (UK)
+47 2156 9640 (Norway)
+49 (0)69 2222 7436 (Germany)
+1 347 366 9564 (US)
Participant Passcode: 687125
Investors and media 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