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EVS Broadcast Equipment : second quarter 2014 results


August 28, 2014 - London

Solid performance

>     2Q14 highlights
oRevenue of EUR 35.6 million, +19.4% (+9.0% excl. event rentals and at constant currency), in line with management expectations
oPerformance in Americas remains strong in 2Q14 (compared to weak 2Q13)
oSuccessful delivery of biggest World Cup ever in terms of TV production
oEBIT of EUR 12.9 million (36.2% of EBIT margin), EPS of EUR 0.66

>     2014 highlights
oSummer order book of EUR 40.9 million on August 27, 2014
>      -6.1% vs. 2013, excluding big events
>      In addition, EUR 13.0 million order book for 2015 and beyond
o2014 guidance:
>      Given that the live production server market shows signs of moderate slowdown, revenue in 2014 (incl. approx. EUR 14 million big event rentals) is now expected to grow at low single digit compared to 2013
>      10-13% expected opex growth mainly related to investments in new technologies as we stay confident in the future growth of our target markets

KEY FIGURES

Unaudited EUR millions, except earnings per share expressed in EUR Reviewed
2Q14 2Q13 2Q14/2Q13 1H14 1H13 1H14/1H13
35.6 29.8 +19.4% Revenue 64.9 62.6 +3.7%
26.7 22.7 +17.3% Gross margin 48.6 48.7 -0.2%
75.0% 76.3% - Gross margin % 74.9% 77.9% -
12.9 9.7 +33.5% Operating profit - EBIT 22.9 24.1 -5.0%
36.2% 32.4% - Operating margin - EBIT % 35.3% 38.5% -
0.0 0.2 N/A Contribution from dcinex 0.1 0.1 N/A
8.9 6.9 +28.0% Net profit (Group share) 16.0 17.0 -5.8%
0.66 0.51 +28.0% Basic earnings per share (Group share) 1.19 1.26 -5.8%

COMMENTS

"In the current challenging environment, we have been able to protect our market shares in our 4 target markets and deliver solid results in the second quarter," said Joop Janssen, Managing Director & CEO of EVS. "During the last few months, our customers highly appreciated the EVS contribution to the large sporting events (e.g. the winter Olympics, the World Cup - with record TV audiences - and the Commonwealth Games), including our latest developments to help them to enrich this valuable content and speed up production and distribution. At the upcoming IBC tradeshow in Amsterdam, we will launch new features and solutions, which will help us to consolidate our leading position in Sports and ENM. We are confident that our strategy is right and that our continued efforts will start paying off when the market situation improves."

Commenting on the results and prospects, Magdalena Baron, CFO, said: "Our performance in the second quarter was fully in line with expectations. Revenue was up by +9.0% compared to 2Q13 (at constant currency and excl. big events), which resulted in higher operating margin (36.2%), despite our continued investments in the future growth, through new hires and our investment in SVS/Dyvi Live. Obviously, we are challenged with the continued weakness of the live production server market, which shows signs of moderate slowdown. As a consequence, we now expect sales in 2014 to grow at low single digit compared to 2013. The operating expenses growth is now expected at 10-13% for 2014, as we continue to carefully manage our costs and selectively invest in the important developments linked to our growth opportunities."

Corporate Calendar:
Friday October 3, 2014: Combined General Meeting
Wednesday November 5, 2014: postponed Extraordinary General Meeting
Tuesday November 18, 2014: 3Q14 earnings

For more information, please contact:

Joop JANSSEN, Managing Director & CEO
Magdalena BARON, CFO
Geoffroy d'OULTREMONT, Vice PresidentInvestor Relations & Corporate Communication
EVS Broadcast Equipment S.A., Liege Science Park, 16 rue du Bois Saint-Jean, B-4102 Seraing, Belgium
Tel: +32 4 361 70 14.E-mail:corpcom@evs.com; www.evs.com
Forward Looking Statements

This press release contains forward-looking statements with respect to the business, financial condition, and results of operations of EVS and its affiliates. These statements are based on the current expectations or beliefs of EVS'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. EVS 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.
About EVS

EVS provides its customers with reliable and innovative technology to enable the production of live, enriched video programming, allowing them to work more efficiently and boost their revenue streams. Its industry-leading broadcast and media production systems are used by broadcasters, production companies, post-production facilities, film studios, content owners and archive libraries around the globe. It spans four key markets - Sports, Entertainment, News and Media.

Founded in 1994, its innovative Live Slow Motion system revolutionized live broadcasting. Its reliable and integrated tapeless solutions, based around its market-leading XT server range, are now widely used to deliver live productions worldwide. Today, it continues to develop practical innovations, such as its C-Cast second-screen delivery platform, to help customers maximize the value of their media content.

The company is headquartered in Belgium and has offices in Europe, the Middle East, Asia and North America. Approximately 503 EVS professionals from 20 offices are selling its branded products in over 100 countries, and provide customer support globally. EVS is a public company traded on Euronext Brussels: EVS, ISIN: BE0003820371. For more information, please visit www.evs.com.
Press release in pdf format



This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: EVS Broadcast Equipment via Globenewswire

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GlobeNewswire

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