Evertz Results Drop on Weakness in NA Market

Quarterly profit down by half
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BURLINGTON, ONTARIO, CANADA:Evertz reported this week that its fiscal 2Q profit came in at half of last year’s figure. The Canadian broadcast equipment maker posted F2Q net income of C$17.5 million (US$16.6 million) or 23 Canadian cents a share, compared to C$34.1 million (US$32.3 million) or 46 Canadian cents a share a year ago. Revenues were down for the quarter 20 percent to C$73 million (US$68.8 million), though up from C$72 million the previous quarter.

Evertz said sales in the North American market fell by C$18.7 million (US$17.7 million) or 30 percent compared to a year ago. By comparison, international sales grew C$400,000, (US$379,000) or 1 percent.

Evertz pumped up research and development from the quarter by C$1.4 million (US$1.33 million) for a total of C$9.1 million (UA$8.6million), up 18 percent from a year earlier. Foreign exchange affected the comparative bottom lines, generating a gain of only C$600,000 (US$569,000) this year compared to C$5.2 million (US$4.9 million) a year earlier.

Purchase order backlog at the end of November was more than C$32 million (US$30 million); shipments for that month exceeded $21 million (US$19.9 million).

The company on Dec. 8 declared a dividend of 8 Canadian cents a share.

More on Evertz:
September 9, 2009: “Evertz Reports 1Q10”

June 18, 2009: “Evertz Reports Nearly Flat 4Q Profit”