EVS Broadcast Equipment reports third quarter 2...

Regulated information - Press release interim financial report

EVS Broadcast Equipment S.A.: Euronext Brussels (EVS.BR), Bloomberg (EVS BB), Reuters (EVSB.BR)

Interim gross dividend of EUR 1.00 per share

>     3Q14 highlights

o  Revenue of EUR 36.0 million, +28.6% (+1.3% excl. event rentals and at constant currency), in line with management expectations

o  Solid performance Americas and EMEA, record big event rentals

o  EBIT of EUR 14.3 million (39.8% EBIT margin), EPS of EUR 0.84

>     Set up of a new internal structure leading to a more efficient decision-making process

>     Outlook

o  Order book of EUR 18.9 million on October 31, 2014

>      -35.1% vs. record 2013

>      In addition, EUR 7.9 million order book for 2015 and beyond

o  2014 guidance:

>      Live production server market continues to be weak and we confirm the signs of moderate slowdown as observed since August

>      Confirmation of the revenue (incl. EUR 14.3 million big event rentals) growth at low single digit compared to 2013

>      Opex growth is now expected to be around 10%

o  2015:

>      Opex growth is expected to be around 10% (compared to previous expectation of 10% to 15% growth)

KEY FIGURES

Unaudited			EUR millions, except earnings per share expressed in EUR	Unaudited
3Q14	3Q13	3Q14/3Q13		9M14	9M13	9M14/9M13
36.0	28.0	+28.6%	Revenue	100.9	90.6	+11.4%
26.9	20.5	+31.2%	Gross margin	75.6	69.3	+9.1%
74.9%	73.4%	-	Gross margin %	74.9%	76.5%	-
14.3	8.4	+70.4%	Operating profit - EBIT	37.2	32.5	+14.5%
39.8%	30.0%	-	Operating margin - EBIT %	36.9%	35.9%	-
0.1	0.2	-65.9%	Contribution from dcinex	0.2	0.3	-26.3%
11.3	6.3	+78.5%	Net profit (Group share)	27.3	23.3	+17.1%
0.84	0.47	+78.7%	Basic earnings per share (Group share)	2.02	1.73	+16.7%

COMMENTS
 "In my current role of President of the Executive Committee, I have made sure, together with the Executive Committee, that all necessary decisions continue to be taken, and that there is no disruption in the management of the company," said Muriel De Lathouwer, member of the Board of Directors (also chairing the strategic committee) of EVS. "We have designed a new internal structure that will allow us to have a more efficient decision-making process in place to even better serve our four target markets: Sports, Entertainment, News and Media."
Commenting on the results and prospects, Magdalena Baron, CFO, said: "Our top line performance in the third quarter was fully in line with expectations. Revenue was up by +28.7% compared to 3Q13 (at constant currency) due to a record level of rentals and led to a higher operating margin (39.8%). Obviously, we continue to be challenged by the weakness of the live production server market, and we confirm the moderate slowdown as observed since August. In this tough market environment we also confirm that sales in 2014 are expected to grow at low single digit compared to 2013. The operating expenses growth is now expected around 10% for 2014. For 2015, while we stay committed to investing in our future growth, we put in place active programs for Opex management, which should result in Opex growth around 10%."

 

For more information, please contact: 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: [phone].  E-mail:[e-mail]; 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 20 offices in Europe, the Middle East, Asia and North America. Approximately 514 EVS professionals sell 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

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Source: EVS Broadcast Equipment via Globenewswire

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