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Vizrt Tallies Deals Worth $2.7 Million in Three Days

BERGEN, NORWAY: Watch out for Vizrt tomorrow. The Norwegian graphics and workflow specialist announced three deals so far this week totaling $2.7 million.

The company said it cut a $900,000 agreement with an Italian broadcaster to provide graphics and integrated asset management for an upgrade to HD. Today’s news follows two announced yesterday totaling $800,000 for provision of graphics technology to production houses in Germany. On Tuesday, Vizrt said it had signed a deal worth more than $1 million for broadcast graphics, Web and mobile technology for a French TV station.

Vizrt recently reported record revenues for 2011 of $125.3 million, up 19 percent over 2010. Graphics drove the increase, accounting for 77 percent of total revenues, the company said. Fourth-quarter revenues reached $33.5 million, up 5 percent from the previous year. Net profit was up 13 percent for the year to $16 million, and up 18 percent to $6 million for the FQ411.

Backlog at the end of last year was up 15 percent to $46.4 million. The company reported having $73 million in cash on hand and 585 employees at the end of 2011.

So far in March, the company has announced nearly $4.1 million in new deals; and nearly $6.6 million year-to-date. A $1 million media asset management upgrade for South African satellite TV sports producer, SuperSport, was announced March 19. Another $380,000 graphics deal in India was announced March 14.

In February, Vizrt announced a $1 million MAM deal for an unnamed U.S. broadcaster in Los Angeles; a $380,000 graphics deal with a newspaper in the Middle East; a $380,000 MAM deal with a broadcaster in Latin America; and a $425,000 hardware upgrade for an Eastern European broadcaster. A $300,000 graphics deal with a South American TV channel was announced in January.

On the acquisition side, Vizrt is in the process of closing on its purchase of LiberoVision, a specialist in virtual sports enhancements. Vizrt said March 14 that it had purchased another 20 percent of the company pursuant to the three-part deal announced in 2010 when Vizrt took a 60 percent stake for $6.12 million. Consideration for the second tranche was calculated at 10 percent of 10x Libero’s EBIT for 2011, bringing the payment to $267,367 in cash and stock, in current exchange rates.

Vizrt (Oslo Main List: VIZ) shares are trading at about €2.85 (US$3.78) this morning, up around 22 percent year-to-date. Vara Research of Frankfurt, Germany, gives Vizrt a consensus share price target of $4.76. 4-Traders of Lyon, Frances rates Vizrt a “Buy” with a target price of $5.12.
~Deborah D. McAdams