In This Article:
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Revenue: $111.6 million for Q1 fiscal 2025, down from $125.8 million in Q1 fiscal 2024.
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Software and Services Revenue: $55.9 million, representing approximately half of total revenue.
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Hardware Revenue: Declined from $81.4 million to $55.7 million year-over-year.
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Gross Margin: 59.4%, up from 57.3% in the prior year.
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Net Earnings: $9.7 million, with fully diluted earnings per share of $0.13.
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Research and Development Expenses: $37.3 million for the quarter.
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Cash Position: $91 million as of July 31, 2024, up from $48.9 million a year ago.
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Working Capital: $197.7 million as of July 31, 2024, down $3.7 million from July 2023.
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Purchase Order Backlog: Over $302 million at the end of August.
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Dividends: Quarterly dividend of $0.195 per share declared.
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Cash from Operations: $22.5 million generated during the quarter.
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Shares Outstanding: Approximately 76.1 million as of July 31, 2024.
Release Date: September 11, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Evertz Technologies Ltd (EVTZF) reported a strong gross margin of 59.4%, up from 57.3% in the prior year.
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The company saw a significant increase in software and services revenue, which rose by 26% to $55.9 million.
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Evertz Technologies Ltd (EVTZF) has a robust purchase order backlog and shipments totaling over $335 million.
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The company closed the quarter with a strengthened cash position of $91 million, up from $48.9 million a year ago.
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Evertz Technologies Ltd (EVTZF) declared a quarterly dividend of $0.195 per share, reflecting confidence in its financial health.
Negative Points
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Total sales for the first quarter decreased to $111.6 million from $125.8 million in the same quarter of the previous year.
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Hardware revenue saw a significant decline from $81.4 million to $55.7 million quarter-over-quarter.
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There was a decrease in working capital, which stood at $197.7 million, down $3.7 million from the previous year.
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Selling and administrative expenses increased to $17.6 million, representing 15.8% of revenues compared to 13% last year.
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The company experienced a foreign exchange loss of $2.1 million in the first quarter of the previous year.
Q & A Highlights
Q: Can you clarify whether the revenue decline is due to industry dynamics, macro issues, or project timing? A: Brian Campbell, Executive Vice President - Business Development, explained that the decline is primarily due to project timing. Despite the revenue dip, Evertz maintains a robust order backlog and solid shipment numbers, indicating strong underlying demand.