Vizrt Reports First Half and Second Quarter 2006 Results
Record revenue growth reaching USD 27.4 million up 68% compared to first half of 2005
Bergen, Norway, August 16, 2006, Vizrt Ltd. (Frankfurt Prime Standard, Oslo Main List: VIZ) today announced its financial results for the first half and second quarter of 2006 with yet another record revenue quarter.
Financial highlights for the six months ended June, 30 2006
- Consolidated revenues in H1 2006 increased by 68% to USD 27.4M compared to USD 16.3M in H1 2005.
- EBIT in H1 2006 was USD 4.5M, up 92% compared to EBIT of USD 2.3M in H1 2005.
- EBITDA (excluding taxes, interest, depreciation, deferred stock-based compensation and equity loss in an affiliate) for H1 2006 was up 114% to USD 5.8M compared to USD 2.7M in H1 2005.
- Basic earnings per share for H1 2006 was USD 0.24 compared to USD 0.15 for H1 2005.
- Diluted earnings per share for H1 2006 was USD 0.23, compared to USD 0.13 for H1 2005.
- Cash balance as of June 30, 2006 was USD 27.4M (including cash and short term deposits) compared to USD 20.4M as of December 31, 2005, generating USD 7.0M in the first half of 2006.
On May 5, 2006, Vizrt concluded the acquisition of Ardendo AB in an all stock-swap transaction, in exchange of 2,912,790 Vizrt shares. Accordingly the operating results of Ardendo since May 6 were consolidated. The consolidated balance sheet as of June 30, 2006, includes all assets and liabilities of Ardendo, including goodwill and intangible assets recorded as a result of the acquisition. Intangible assets in the aggregate amount of USD 13.8M will be amortized over the next 3-10 years, most of which in the next 5 years. Net of tax, the quarterly amortization will be app. USD 0.4M. (In Q206, consolidating Ardendo for 2 months, the quarterly amortization, net of tax, is USD 0.3M).
Outlook
The initial integration of the Ardendo product line is now complete, and Vizrt is already experiencing the initial benefits of the combined Vizrt/Ardendo offering. Vizrt is now a substantial player in the broadcast market thanks to its end-to-end solutions. We can now accommodate our customers with a much more integrated work flow. The Vizrt product portfolio provides an integrated solution where all components operate seamlessly.
Vizrt just started to explore the archive and asset management market. Thanks to the reach of our worldwide sales organization and unparalleled strength of Ardendo's software, we believe this combination will produce significant results in the future.
Mobile TV opportunities have progressed more slowly than projected, but there are some promising developments, and we hope to see more growth at the IBC convention in Amsterdam next month. The integration of our products with Microsoft's Virtual Earth is also progressing as planned, and Microsoft will be within our IBC booth supporting demonstrations of the new product. Also new at IBC this year will be the presence of Apple, showing how Ardendo, Vizrt and Curious products support the Mac platform.
These developments have already sparked considerable interest from existing and new customers.
We've also experienced an uptick within emerging markets just beginning their migration to modern broadcast technologies. Business in Eastern Europe and Latin America, as well as new markets in Asia and Africa, is escalating. Our goal is to maintain the momentum in all of these emerging markets.
Outlook
The initial integration of the Ardendo product line is now complete, and Vizrt is already experiencing the initial benefits of the combined Vizrt/Ardendo offering. Vizrt is now a substantial player in the broadcast market thanks to its end-to-end solutions. We can now accommodate our customers with a much more integrated work flow. The Vizrt product portfolio provides an integrated solution where all components operate seamlessly.
Vizrt just started to explore the archive and asset management market. Thanks to the reach of our worldwide sales organization and unparalleled strength of Ardendo's software, we believe this combination will produce significant results in the future.
Mobile TV opportunities have progressed more slowly than projected, but there are some promising developments, and we hope to see more growth at the IBC convention in Amsterdam next month. The integration of our products with Microsoft's Virtual Earth is also progressing as planned, and Microsoft will be within our IBC booth supporting demonstrations of the new product. Also new at IBC this year will be the presence of Apple, showing how Ardendo, Vizrt and Curious products support the Mac platform.
These developments have already sparked considerable interest from existing and new customers.
We've also experienced an uptick within emerging markets just beginning their migration to modern broadcast technologies. Business in Eastern Europe and Latin America, as well as new markets in Asia and Africa, is escalating. Our goal is to maintain the momentum in all of these emerging markets.
About Vizrt:
Vizrt offers a new vision for content creation and delivery with an end-to-end solution from ingest to visualization. Our solution combines Vizrt's true 2D/3D graphics tools with Curious Software's World Maps and Ardendo's Asset Management. Running on non proprietary software, the combination of these unique cutting edge products ensures a seamless workflow from conception to multi-format distribution. The latest addition to the Vizrt product suite is Viz|3G for hand held devices.
Vizrt offers a new vision for content creation and delivery with an end-to-end solution from ingest to visualization. Our solution combines Vizrt's true 2D/3D graphics tools with Curious Software's World Maps and Ardendo's Asset Management. Running on non proprietary software, the combination of these unique cutting edge products ensures a seamless workflow from conception to multi-format distribution. The latest addition to the Vizrt product suite is Viz|3G for hand held devices.
Vizrt's product suite is used by the world's leading broadcasters including: CNN, CBS, Fox, BBC, Sky, ITN, ZDF, Star TV, TV Today, CCTV and NHK. Also, many world-class production houses and corporate institutions, including both the New York and London Stock Exchanges, utilize Vizrt solutions.
Vizrt is a public company traded on the Frankfurt Prime Standard and on the Oslo Main List: VIZ, ISIN: IL0010838154.
For further information please refer to www.vizrt.com
Press contacts:
| Ofra Brown | Kathrine Wallace | SCHWARZ Financial Communication |
| CFO | VP Marketing | Frank Schwarz |
| +47 2169 2790 | +47 55 90 8265 | +49 611 1745 398 11 |
To view the full Q2 financial report, please click on the link following down below.