Vizrt Reports Third Quarter 2005 Results
Revenues Reached USD 27.1 Million Up 33% and Net Profit USD 4.0 Million Up 31%
Bergen, Norway, November 9, 2005, Vizrt Ltd. (Frankfurt Prime Standard, Oslo Main List: VIZ) announced today its financial results for nine months and the third quarter of 2005.
Results Highlights:
Vizrt's quarterly and nine month growth in both revenue and net profit are a result of a constantly expanding customer base as well as continued penetration into new geographical regions, with significant business success in emerging markets.
Financial highlights for the nine months ended September 30, 2005
Bergen, Norway, November 9, 2005, Vizrt Ltd. (Frankfurt Prime Standard, Oslo Main List: VIZ) announced today its financial results for nine months and the third quarter of 2005.
Results Highlights:
Vizrt's quarterly and nine month growth in both revenue and net profit are a result of a constantly expanding customer base as well as continued penetration into new geographical regions, with significant business success in emerging markets.
Financial highlights for the nine months ended September 30, 2005
- Consolidated revenues for nine months 2005 increased by 33% to USD 27.1M, including USD 1.14M contributed by Curious, compared to USD 20.4M for nine months 2004.
- Gross margin at 72% for nine months 2005 compared to 71% for nine months 2004.
- EBITDA (excluding taxes, interest, depreciation, amortization of intangible assets and deferred stock compensation) for 9 months 2005 was USD 4.8M, up 30% compared to USD 3.7M for 9 months 2004.
- USD 4.0M net profit for 9 months 2005 up 31%, compared to a net profit of USD 3.0M for 9 months 2004.
- Basic earnings per share for 9 months 2005 was US$ 0.26 compared to US$ 0.22 for 9 months 2004.
- Fully diluted earnings per share for 9 months 2005 was USD 0.24 compared to USD 0.19 for 9 months 2004.
- Cash balance as of September 30, 2005 was USD 19.5M (including cash and short term deposits) compared to USD 15.2M as of December 31, 2004.
"Vizrt's R&D spending, as a percentage of revenue, is significantly higher than most of our competitors and our customers are the beneficiaries of that sustained effort, said Mr. Bjarne Berg, President and CEO. As broadcasters woldwide consider investing in new technology they will look to companies they believe can deliver today's solutions, as well as those for the future. That I believe," added Mr. Berg, "is the main reason for yet another quarter with significant growth partially based on recurring and repeat business from existing customers."
Financial highlights for the three months ended 30th of September, 2005
- Consolidated revenues for Q3 2005 increased by 48% to USD 10.8M compared to USD 7.3M in Q3 2004, and USD 9.0M in Q2 2005.
- Gross margin at 67% compared to 71% in Q3 2004, mainly due to higher hardware content in one of the large contracts recognized this quarter.
- EBITDA (excluding taxes, interest, depreciation, amortization of intangible assets and deferred stock compensation) for Q3 2005 was up 47%, at USD 2.1M, compared to USD 1.4M in Q3 2004.
- USD 1.8M net profit in Q3 2005, up 45% compared to a net profit of USD 1.2M in Q3 2004.
- Basic earnings per share for Q3 2005 was USD 0.12 compared to USD 0.09 for Q3 2004.
- Fully diluted earnings per share for Q3 2005 were USD 0.11, compared to USD 0.08 for Q3 2004.
Outlook
Vizrt is determined to be a leader in the emerging world of content delivery technologies for broadband and the many types of wireless handheld devices. The growth of these technologies is fuelled by the increased bandwidth in wired and wireless networks globally. The next few years will probably be the time when broadband TV and "TV-to-Go" prove themselves and take off. The increased sophistication of handheld devices will establish these devices as "mini-TV receivers". Vizrt is committing resources to develop tools for these platforms. We are already leveraging our close relationships with our current customers, that include some of the world's leading broadcasters, to discuss their near term requirements for these devices. At next year's NAB Exhibition we expect to demonstrate our solution for content delivery to mobile phones, which we believe will be a key growth factor going forward.
A conference call will be held at 11:00 p.m. (CET) 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: +49 69 2222 7111(Germany); +47 2316 2771 (Norway); +44 20 7365 1843 (UK).
About Vizrt:
Vizrt is the world's leading provider of HD/SD real-time 2D and true 3D broadcast graphics. The company's software suite offers a complete graphics solution including: character generation, content management and newsroom integration, 3D tickers, virtual studio, 3D weather application with data integration, Curious Software map creation tools, virtual sports analysis, information display and virtual effects.
Vizrt is the world's leading provider of HD/SD real-time 2D and true 3D broadcast graphics. The company's software suite offers a complete graphics solution including: character generation, content management and newsroom integration, 3D tickers, virtual studio, 3D weather application with data integration, Curious Software map creation tools, virtual sports analysis, information display and virtual effects.
All Vizrt's graphics products are powered by a single core renderer, the unique and powerful Viz|Engine(TM). Vizrt's graphics solution goes beyond the visual aspect and includes highly customized user interfaces for the designer, operator, journalist and engineer.
The world's leading broadcasters, such as CNN, CBS, Fox, BBC, Sky, ITN, ZDF, Star TV, TV Today, CCTV and NHK as well as Production houses and Corporate institutions, including both the New York and London Stock Exchange, use the Vizrt's software suite. 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
Media & Investors Contact:
| Bjarne Berg | Ofra Brown | SCHWARZ Financial Communication |
| President CEO | CFO | Frank Schwarz |
| +47 9055 7711 | +972 54 4955225 | +49 611 2058 095 |
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 or download the full Q3 report with financial details: