Vizrt Reports 2007 Annual Results
Revenue up 37%
Record Revenue totaling USD 86.5 M
Bergen, Norway, February 19, 2008, Vizrt Ltd. (Frankfurt Prime Standard, Oslo Main List: VIZ) today announced its results for the financial year ending December 31st 2007. The Company achieved record revenues of USD 86.5M compared to USD 63.4M for 2006, an increase of 37%, as well as record EBIT of USD 16.7M and record net profit of USD 16.0M.
Financial highlights for the year ended December 31, 2007
(1)See "Use of Non-GAAP Financial Information" and "Reconciliation of Supplemental Financial Information" below for more information regarding Vizrt's use of non-GAAP measures.
(2)"Equity-based compensation expenses" refer to the amortized fair value of all equity based awards granted to employees. "Acquisition- related charges" refer to the impact of the amortization of intangible assets and other acquisition-related expenses.
Financial highlights for the three months ended December 31, 2007
2008 Outlook
Although it is too early to tell whether broadcasters will hold back on spending due to the turbulence in the financial markets, so far the Company has not witnessed any slow down. Vizrt's backlog and pipeline are growing steadily and management is confident that the MAM (Media Asset Management) business will grow substantially over the year. The growth from 2006 to 2007 was in excess of 40 percent. Based on customer feed back the Company does not expect investments in MAM to slow down in the coming years.
The same holds true for Broadcast Graphics, which is showing similar positive developments. The recent primaries in the US were like a Superbowl for graphics, with more and more broadcasters acknowledging that the use of graphics can make the difference between good and mediocre election coverage.
Furthermore, the launch of the first product suites integrating both MAM and traditional Broadcast Graphics has shown promising results. Although currently low on features, new versions will be released, the first planned for April, which Management believes will generate a significant increase in the rate of sales. Demand for plug-ins to NLEs, such as Final Cut Pro, have also recorded strong growth and as better versions are released at NAB, the Company hopes to be able to create a significant interest in these products.
THE FULL PRESS RELEASE AND INVESTORS PRESENTATION ARE AVAILABLE FOR DOWNLOAD VIA THE LINKS AT THE END OF THIS MESSAGE.
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 8602 0812 (UK), +47 2316 2819 (Norway), +49 69 71044 5513 (Germany), Participant. Pass code: 859466.
Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Vizrt uses non-GAAP measures of gross margin, net income, EBIT and earnings per share, which are adjustments from results based on GAAP to exclude non-cash equity-based compensation charges in accordance with SFAS 123R and acquisition related charges. Vizrt's management believes the non-GAAP financial information provided in this release is useful to investors' understanding and assessment of Vizrt's on-going operations and prospects for the future. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and as such has determined that it is important to provide this information to investors.
Media and Investors Contact:
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
Record Revenue totaling USD 86.5 M
Bergen, Norway, February 19, 2008, Vizrt Ltd. (Frankfurt Prime Standard, Oslo Main List: VIZ) today announced its results for the financial year ending December 31st 2007. The Company achieved record revenues of USD 86.5M compared to USD 63.4M for 2006, an increase of 37%, as well as record EBIT of USD 16.7M and record net profit of USD 16.0M.
Financial highlights for the year ended December 31, 2007
- Total Revenues: USD 86.5M, an increase of 37% compared to USD 63.4M for 2006.
- EBIT - GAAP: USD 16.7M, an increase of 42% compared to USD 11.8M for 2006.
- EBIT - Non-GAAP(1): USD 20.2M, an increase of 40% compared to Non USD 14.5M in 2006. Non-GAAP EBIT excludes equity-based compensation expenses and acquisition-related charges(2).
- Earnings per diluted share - GAAP: USD 0.25 compared to USD 0.19 in 2006.
- Earnings per diluted share - Non GAAP: USD 0.29 compared to USD 0.23 for 2006. Non-GAAP earnings per diluted share exclude equity-based compensation expenses and acquisition-related charges.
- Cash status: USD 48.0M (including cash and short term deposits) compared to USD 38.2M as of December 31, 2006. On July 31, 2007, Vizrt distributed a special dividend to its shareholders totaling USD 8.2 Million. Including the dividend distribution, USD 18.0M in cash was generated during 2007.
- Share split: On August 20, 2007, the company distributed two bonus shares for every one share held by the shareholders of the company. All share and per share data were retroactively adjusted.
(1)See "Use of Non-GAAP Financial Information" and "Reconciliation of Supplemental Financial Information" below for more information regarding Vizrt's use of non-GAAP measures.
(2)"Equity-based compensation expenses" refer to the amortized fair value of all equity based awards granted to employees. "Acquisition- related charges" refer to the impact of the amortization of intangible assets and other acquisition-related expenses.
Financial highlights for the three months ended December 31, 2007
- Total Revenues: USD 24.1M, an increased of 27% compared to USD 19.0M in Q4 2006, and USD 21.2M in Q3 2007.
- EBIT - GAAP: USD 5.5M, an increase of 30% compared to USD 4.2M in Q4 2006.
- EBIT - Non GAAP: USD 6.4M, an increase of 25% compared to USD 5.1M for Q4 2006. Non-GAAP EBIT excludes equity-based compensation expenses and acquisition-related charges.
- Earnings per diluted share - GAAP: USD 0.08 compared to USD 0.06 in Q4 2006.
- Earnings per diluted share - Non GAAP: USD 0.09, compared to USD 0.07 in Q4 2006. Non-GAAP earnings per diluted share exclude equity-based compensation expenses and acquisition-related charges.
- Cash status: In Q4 2007 the company generated USD 5.9M in cash.
2008 Outlook
Although it is too early to tell whether broadcasters will hold back on spending due to the turbulence in the financial markets, so far the Company has not witnessed any slow down. Vizrt's backlog and pipeline are growing steadily and management is confident that the MAM (Media Asset Management) business will grow substantially over the year. The growth from 2006 to 2007 was in excess of 40 percent. Based on customer feed back the Company does not expect investments in MAM to slow down in the coming years.
The same holds true for Broadcast Graphics, which is showing similar positive developments. The recent primaries in the US were like a Superbowl for graphics, with more and more broadcasters acknowledging that the use of graphics can make the difference between good and mediocre election coverage.
Furthermore, the launch of the first product suites integrating both MAM and traditional Broadcast Graphics has shown promising results. Although currently low on features, new versions will be released, the first planned for April, which Management believes will generate a significant increase in the rate of sales. Demand for plug-ins to NLEs, such as Final Cut Pro, have also recorded strong growth and as better versions are released at NAB, the Company hopes to be able to create a significant interest in these products.
THE FULL PRESS RELEASE AND INVESTORS PRESENTATION ARE AVAILABLE FOR DOWNLOAD VIA THE LINKS AT THE END OF THIS MESSAGE.
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 8602 0812 (UK), +47 2316 2819 (Norway), +49 69 71044 5513 (Germany), Participant. Pass code: 859466.
Use of Non-GAAP Financial Information
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, Vizrt uses non-GAAP measures of gross margin, net income, EBIT and earnings per share, which are adjustments from results based on GAAP to exclude non-cash equity-based compensation charges in accordance with SFAS 123R and acquisition related charges. Vizrt's management believes the non-GAAP financial information provided in this release is useful to investors' understanding and assessment of Vizrt's on-going operations and prospects for the future. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and as such has determined that it is important to provide this information to investors.
Media and Investors Contact:
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