EVS Broadcast Equipment reports second quarter ...

Publication on August 27, 2015, before market opening
Regulated information - Press release quarterly results
EVS Broadcast Equipment S.A.: Euronext Brussels (EVS.BR), Bloomberg (EVS BB), Reuters (EVSB.BR)

• 1H15 highlights
  • Revenue of EUR 47.4 million, -28.0% excl. event rentals and at constant currency
  • Performance in line with expectations in Americas and APAC, continued soft performance in EMEA with expected higher 2H15 in that region, as confirmed by the order book
  • Operating expenses under control (-2.3% at constant currency compared with 1H14)
  • EBIT margin of 15.6% due to low sales, net profit of EUR 5.5 million, EPS of EUR 0.41
     
• 2Q15 highlights
  • Revenue of EUR 23.3 million, -35.8% excl. event rentals and at constant currency
  • Decision to transfer the Chengdu development activities to the new headquarter in Liège and close the Chengdu development center
  • EBIT of EUR 1.9 million (8.2% EBIT margin) due to high proportion of fix costs, net profit of EUR 0.7 million
     
• 2015 outlook
  • Order book of EUR 36.8 million on August 25, 2015
    • +10.2% vs. 2014 excl. big event rentals
    • In addition, EUR 5.4 million order book for 2016 and beyond
  • Confirmation of 2015 guidance:
    • 2015 revenue likely to be in the range of EUR 100-115 million
    • Opex is expected to grow at high single digit vs 2014

KEY FIGURES

Unaudited			EUR millions, except earnings per share expressed in EUR	Reviewed
2Q15	2Q14	2Q15/2Q14		1H15	1H14	1H15/1H14
23.3	35.6	-34.5%	Revenue	47.4	64.9	-26.9%
15.5	26.7	-41.7%	Gross margin	32.8	48.6	-32.6%
66.7%	75.0%	-	Gross margin %	69.1%	74.9%	-
1.9	12.9	-85.2%	Operating profit - EBIT	7.4	22.9	-67.7%
8.2%	36.2%	-	Operating margin - EBIT %	15.6%	35.3%	-
0.7	8.9	-92.5%	Net profit (Group share)	5.5	16.0	-65.8%
0.05	0.66	-92.5%	Basic earnings per share (Group share)	0.41	1.19	-65.9%

COMMENTS

"Despite the continued challenging market conditions in the broadcast industry, we maintained our strong market position and our order book and the end of August suggests a better second half", said Muriel De Lathouwer, Managing Director & CEO of EVS. "The industry is clearly going through a period of uncertainty with different technology changes (such as UHD or IP-based technologies), and our role is to bring innovative and pragmatic solutions to help our customers going through these transitions with confidence in the sustainability of their investment. In parallel, we continue to see progress in our initiatives to better structure the company and control our cost. The transfer of developments made in Chengdu to the new headquarter in Liège will help us to further improve our R&D efficiency."

Commenting on the results and prospects, she added: "1H15 has been globally influenced by the market conditions and the currency movements, partially offset by the increased control on our costs. The order book is at EUR 36.8 million (+10.2% vs 2014, excl. big event rentals), which allows us to confirm our 2015 revenue guidance, which is likely to be in the range of EUR 100-115 million. Opex were stable in 1H15 compared to 1H14 (-2.3% at constant currency). However, we keep the guidance for high single digit operating expenses growth in 2015 vs 2014, mainly due to the currency effects and the new building depreciation. Finally, the recruitment of a new CFO is going on, and we plan to close it before the end of the year."

Conference call

EVS will hold a conference call in English today at 3:00 pm CET for financial analysts and institutional investors. Other interested parties may join the call in a listen-only mode. The presentation used during the conference call will be available shortly before the call on the EVS website.

Dial-in numbers: [phone] (United Kingdom), [phone] (Belgium), [phone] (United States)
Conference call ID: 954598

Corporate Calendar

September 11-15, 2015: IBC tradeshow (Amsterdam)
Friday November 13, 2015: 3Q15 results

For more information, please contact:   Muriel DE LATHOUWER, Managing Director & CEO Geoffroy d'OULTREMONT, Vice President  Investor Relations & Corporate Communication EVS Broadcast Equipment S.A., Liege Science Park, 13 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. Around 500 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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