Vizrt Reports Q4 and 2012 Results - Growth in APAC and The Americas partially offsetting continued market softness in Europe

Continued margin growth

Bergen, Norway, February 14, 2013. Vizrt Ltd. (Oslo Main List: VIZ)

Revenues of MUSD 121.8 for 2012, flat on a dollar neutral basis, compared to MUSD 125.3 in 2011, despite the challenging market conditions for most of 2012.  Gross margin and recurring EBIT^[1] improved compared to 2011. The MAM product line continued to grow, despite the economic uncertainties.  Geographically, APAC and the Americas posted 9% growth each, partially offsetting slowdown in Europe. Vizrt posted a recurring EBIT of MUSD 19.3 (16% margin) for FY 2012 and MUSD 7.0 (23% margin) in Q4 2012.

 

 

HIGHLIGHTS

• Revenues for FY 2012 came in at MUSD 121.8, on a dollar neutral basis, compared to MUSD 125.3 in 2011. Revenues for Q4 2012 were MUSD 30.3, down 9% compared to the same period LY.  
• Recurring EBIT was MUSD 19.3 for FY 2012 and MUSD 7.0 for Q4 2012, corresponding to a 16% and 23% margin respectively, compared to MUSD 18.5 (15%) and MUSD 7.2 (21%) for the same periods LY.
• EBITDA^[2] reached MUSD 25.8 for FY 2012 and MUSD 8.9 for Q4 2012, corresponding to a 21% and 29% margin respectively, compared to MUSD 24.9 (20%) and 8.9 (27%) for the same periods LY.
• The Company posted a net profit of MUSD 4.7 (4%) for FY2012 and MUSD 3.9 (13%) for Q4 2012, compared to MUSD 16.0 (13%) and MUSD 6.0 (18%) for the same periods LY. Net income was impacted by a MUSD 7.8 non-cash impairment charge recorded in Q2 2012 and MUSD 1.4 revaluation of contingent consideration related to the LiberoVision acquisition.
• Backlog to date is MUSD 47.1, up 2% compared to the same period LY.
• Cash flow from operating activities FY 2012 was MUSD 17.1, compared to MUSD 24.6 for FY 2011. Cash flow from operating activities in Q4 2012 was MUSD 3.8, compared to MUSD 12.4 for Q4 2011. As of December 31, 2012 the cash position amounted to MUSD 78.9, up from September 30, 2012 by MUSD 3.6. 
• Third and final closing for the acquisition of the remaining 20% of LiberoVision is to be concluded no later than February 28, 2013. The consideration, based on LiberoVision adjusted EBIT for 2012 is MCHF 2.2 (app. MUSD 2.4), to be paid 80% in cash and 20% in Vizrt's shares. MUSD 1.4 was recorded in Q4 2012 to adjust the contingent liability to the final consideration.
• The 2012 annual impairment test for Escenic's intangible assets is currently being performed, and will be completed by the time the audited financial statements will be submitted. As of December 31, 2012, such intangible assets amounted to MUSD 3.0. If the Company determines that any portion of intangible assets is to be impaired, it will recognize a non-cash charge that would impact earnings and earnings per share for the fourth quarter of 2012, as well as for the full financial year ended December 31, 2012.
• The board of directors is to resolve on dividend distribution in its next meeting, scheduled to be held April 18, 2013.  

Management summary and outlook