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EVS Broadcast Equipment reports first quarter 2014 results

May 14, 2014

 >     1Q14 highlights o  Revenue of EUR 29.3 million, in line with management's cautious message in February, reflecting soft economic environment in the broadcast industry o  EBIT of 10.0 million (34.1% EBIT margin), EPS of EUR 0.53 o  Successful EVS showcase at the Winter Games in Sochi o  New products launches at NAB tradeshow (incl. 12-channel XS server) welcomed by customers, solidifying EVS product category leadership >     2014 highlights o  Spring order book of EUR 44.9 million on May 10, 2014 >      +14.6% vs. 2013, excluding big events >      In addition, EUR 10.7 million order book for 2015 and beyond o  If market conditions do not improve, the revenue in 2014 (incl. EUR 10-12 million big event rentals) is expected to grow at high single digit compared to 2013 o  10-15% expected opex growth mainly related to investments in new technologies >     Total dividend of EUR 2.16, resulting in a payout ratio of 85.7% and a dividend yield of 4.4% (in line with average over the last years) KEY FIGURES EUR millions, except earnings per share expressed | Unaudited (EUR) +-----+-----+-----+--------- |1Q14 |4Q13 |1Q13 |1Q14/1Q13 ---------------------------------------------------+-----+-----+-----+--------- Revenue | 29.3| 38.5| 32.8| -10.6% ---------------------------------------------------+-----+-----+-----+--------- Gross margin | 22.0| 28.2| 26.0| -15.5% ---------------------------------------------------+-----+-----+-----+--------- Gross margin % |74.9%|73.3%|79.2%| - ---------------------------------------------------+-----+-----+-----+--------- Operating profit - EBIT | 10.0| 15.9| 14.5| -30.7% ---------------------------------------------------+-----+-----+-----+--------- Operating margin - EBIT % |34.1%|41.3%|44.0%| - ---------------------------------------------------+-----+-----+-----+--------- Contribution from dcinex | 0.1|(0.2)| -0.2| N/A ---------------------------------------------------+-----+-----+-----+--------- Net profit (Group share) | 7.1| 10.7| 10.0| -29.2% ---------------------------------------------------+-----+-----+-----+--------- Basic earnings per share (Group share) | 0.53| 0.80| 0.75| -29.5% COMMENTS "In a market that is not better than last year, we have made significant progress in our different projects, targeting our four markets: Sports, Entertainment, News and Media. The Winter Olympics in Sochi was an important success and, once again, our teams can be proud of the new functionalities they delivered there. In a few weeks, the World Cup will start in Brazil, with again a crucial involvement of EVS in the TV production of this event, including the creation of many new content packages for the recently developed multimedia delivery platform", said Joop Janssen, Managing Director & CEO of EVS. "We had a very positive feedback at the NAB tradeshow in April (Las Vegas) on our new product launches. We will continue to invest in our future growth, as we are confident in our strategy, by developing solutions for cloud and IP-network- based production workflows. This way, when market conditions improve, we will be in a good place to leverage our strong competitive position." Commenting on the results and prospects, Magdalena Baron, CFO, said: "The EUR 29.3 million revenue in 1Q14 reflects the continued softness in our industry in 2014, in line with the cautious message we gave in February. Lower sales, combined with the increase in operating expenses, led to a 34.1% EBIT margin. Given the current trading environment, if market conditions do not improve, the revenue in 2014 is expected to grow at high single digit compared to 2013. While operating expenses growth is still expected at 10-15% for 2014, relating to the investments in new technologies, we further increase cost control and selectively invest in the important developments linked to our growth opportunities" Corporate Calendar Tuesday May 20, 2014: Combined General Meeting Wednesday May 28, 2014: Final dividend: ex-date Friday May 30, 2014: Final dividend: record date Monday June 2, 2014: Final dividend: payment date Friday June 20, 2014: postponed Extraordinary General Meeting Thursday August 28, 2014: 2Q14 earnings Tuesday November 18, 2014: 3Q14 earnings ------------------------------------------------------------------------------- For more information, please contact: Joop JANSSEN, Managing Director & CEO Magdalena BARON, CFO Geoffroy d'OULTREMONT, Vice President  Investor 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.; 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 497 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 dcinex, of which EVS owns 41.3%, is the European leader for Digital Cinema technology and services in Europe with more than 5,500 committed digital screens in Europe, out of which 3,700 have already been deployed. Press release in pdf format: This announcement is distributed by GlobeNewswire on behalf of GlobeNewswire clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: EVS Broadcast Equipment via GlobeNewswire [HUG#1785608]

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Source: Thomson Reuters ONE

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