Vizrt Ltd. Reports 2011 and Q4 2011 Results with New Records - Seite 4

in Q4 2010, in relation to the amortization of intangible assets resulting from
acquisitions. Adjusted for these amortization effects, the gross margin was 71%
compared to 66% for FY 2010.

Operating Expenses

Total operating expenses for FY 2011 were MUSD 64.4, up 7.5% compared to the
same period LY. The increase was mainly due to an increase in headcount in Vizrt
and staff additions due to the LiberoVision acquisition, which took place in
July 2011. Furthermore, the ongoing implementation of the regionalization
program, as well as a general salary increase implemented throughout the company
in 2011, all contributed to the cost increase. The increase in total operating
expenses was significantly below the revenue growth rate (7.5% versus 19%).

Currency Effects

Currency fluctuations in the second half of the year, especially the
appreciation of the USD, neutralized the effects as reported for the first half
of 2011.  The net currency effect, both on OPEX and revenues, was near to
neutral and of no material influence when analyzing the full year results.

Operating expenses summary

+---------+--------+--------+--------+--------+--------+
| In KUSD | 2011 | 2010 | Q411 | Q410 | Q311 |
+---------+--------+--------+--------+--------+--------+
| R&D | 19,154 | 15,728 | 4,729 | 4,493 | 5,057 |
+---------+--------+--------+--------+--------+--------+
| S&M | 33,829 | 30,531 | 7,993 | 8,379 | 9,322 |
+---------+--------+--------+--------+--------+--------+
| G&A | 11,369 | 10,097 | 3,241 | 2,694 | 2,909 |
+---------+--------+--------+--------+--------+--------+
| OPEX | 64,352 | 56,356 | 15,963 | 15,836 | 17,288 |
+---------+--------+--------+--------+--------+--------+

Order backlog

The order backlog as of February 15, 2012, was MUSD46.4, up15%, compared to LY
MUSD 40.2, and down 5% compared to the Q3 2011 results release date. LV backlog
amounting to MUSD 2.9 is included under BG. BG backlog was at MUSD 24.8, MAM
backlog at MUSD 16.6, ONL backlog at MUSD 4.7 and Mobile streaming, related to
Adactus, at MUSD 0.3. For BG and MAM backlog was up 18% and 22%, respectively,
compared to the same period LY, whereas for ONL&MOB the backlog was down 12%,
comparing to the same period LY.

Balance Sheet, Cash Flow and Liquidity

Cash flow generation from operating activities in 2011 was MUSD 24.6, compared
to MUSD 12.9 in 2010. Net cash provided by operating activities in Q4 2011 was
MUSD 12.4, compared to MUSD 8.2 in Q4 2010. A net cash consideration of MUSD
6.3 was paid on July 1, 2011 for the first 60% of LiberoVision shares.

Vizrt has a strong financial position with no interest-bearing debt and a net