Vizrt Reports First Quarter 2006 Results
Bergen, Norway, May 9, 2006, Vizrt Ltd. (Frankfurt Prime Standard, Oslo Main List: VIZ) today announced its financial results for the first quarter of 2006 with yet another record revenue quarter reaching USD 12.0M and record bottom line results, reaching USD 2.3M net profit and 19% net margin.
On April 26, 2006, subsequent to closing the first quarter, Vizrt signed a share purchase agreement to acquire all of Ardendo AB shares in an all stock-swap transaction, in exchange of 2,912,790 Vizrt shares. Closing was completed on May 5, 2006.
Financial highlights for the three months ended March 31, 2006
- Consolidated revenues for Q1 2006 increased by 65% to USD 12.0M compared to USD 7.3M in Q1 2005, and USD 11.7M in Q4 2005.
- USD 2.3M net profit in Q1 2006, up 182% compared to a net profit of USD 0.8M in Q1 2005. (19% profit margin)
- Cash and short term deposits increased by USD 4.2M to a total of USD 24.6M.
- EBITDA (excluding amortization of deferred stock compensation) for Q1 2006 was up 180%, to USD 2.7M, compared to USD 0.9M in Q1 2005.
- Basic earnings per share for Q1 2006 was USD 0.14 compared to USD 0.06 for Q1 2005.
- Fully diluted earnings per share for Q1 2006 were USD 0.13, compared to USD 0.05 for Q1 2005.
Outlook
With the completion of the acquisition of Ardendo, Vizrt is now positioned to offer a complete range of quality products ranging from ingest to play out. Adding our mobile TV-solution, based on the MPEG 21-standard, Vizrt can truly deliver timely content to any thinkable intelligent screen.
Vizrt has transformed from a "smarter graphics company" to a company that supports the client's need for "end to end" tools to manage content. Since content is the key driver in our customer's business, Vizrt is confident that these strategic moves will be embraced by the 1,000 plus broadcasters around the world and fuel positive results for Vizrt.
To realize the financial benefits of these additional significant product offerings, the company will expand its operations in many parts of the world, primarily to sell, install and support the Ardendo products as well as the graphics and map product lines. Simultaneously, the company has also taken steps to increase R&D- capacity by opening an R&D-facility in Thailand. Employees are already hired, with the operation headed by Hubert Oehm, the main architect behind the industry standard Viz|Engine.
With the completion of the acquisition of Ardendo, Vizrt is now positioned to offer a complete range of quality products ranging from ingest to play out. Adding our mobile TV-solution, based on the MPEG 21-standard, Vizrt can truly deliver timely content to any thinkable intelligent screen.
Vizrt has transformed from a "smarter graphics company" to a company that supports the client's need for "end to end" tools to manage content. Since content is the key driver in our customer's business, Vizrt is confident that these strategic moves will be embraced by the 1,000 plus broadcasters around the world and fuel positive results for Vizrt.
To realize the financial benefits of these additional significant product offerings, the company will expand its operations in many parts of the world, primarily to sell, install and support the Ardendo products as well as the graphics and map product lines. Simultaneously, the company has also taken steps to increase R&D- capacity by opening an R&D-facility in Thailand. Employees are already hired, with the operation headed by Hubert Oehm, the main architect behind the industry standard Viz|Engine.
A conference call will be held at 12:00 noon (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 7806 1969 (UK), +47 2316 2193 (Norway), +49 69 22222 0421 (Germany). Participant Passcode: 445430.
Press contacts:
| Bjarne Berg | Ofra Brown | Frank Schwarz |
| President & CEO | CFO | SCHWARZ Financial Communication |
| +47 9055 7711 | + 47 2169 2790 | +49 611 1745 398 11 |
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.
Please click the following link to view the full Q1 report as PDF document: